Marriage is a great thing in which I believe. However, something that not many people know is that in Switzerland, you are better off financially if you are not married. There are several disadvantages to being married in Switzerland.
Do not take me wrong, I am not saying you should not get married! We got married last year and I do not regret it at all. Marriage is about love not about money! But I know that in the future, we would be better off financially if we did not marry. This is important to know the differences between married couples in Switzerland, especially if you plan to retire here.
So in this post, we are going to see what financial difference there are between a married couple and an unmarried couple. You will see that there are some substantial differences in taxes and retirement for married couples.
Continue reading “Switzerland is unfair to married couples”
On this blog, you already heard about inflation. And if you follow other personal finance blogs, you have probably heard a lot about it. But do you know exactly what it is? And especially, do you know what causes inflation and what it does to your personal finance?
Inflation is caused by many things, it can come from the economy, from the government or for simple demand and supply effects. It can even be negative, something that is called deflation. And it has several effects, the biggest of which is to make you lose purchasing power over time. You need to protect yourself against inflation.
In this post, we are going to look in details at all these causes and effects of inflation. And we are also going to look at some examples of inflation in the past.
Continue reading “What is Currency Inflation? How to Fight it?”
You have probably already heard of lifestyle inflation? I have already talked a bit about that since I fell into this trap myself. It is a very important subject because many people are subject to it. And lifestyle inflation can ruin your financial life. It is important to learn how to avoid life style inflation!
Lifestyle inflation is happening when your spending is going up and up. Many people when they get a raise or some extra income, they simply go with spending it all. They do not only do it for one month, but they also do it the next month as well. And the following time they get a raise, they do exactly the same. Some of them can afford it, but some people go into debt in that vicious circle.
The main problem is that most people do not consider everything there is to consider when getting some extra income. For instance, they do not consider that they will have to pay more taxes when they get more income. And they do not consider the upkeep costs of some of the things they buy. Moreover, they also do not think of their retirement. The more you spend each month, the more difficult it is to retire.
In this post, we are going to see all about lifestyle inflation. I am also going to talk about a few rules you should consider if you want to avoid, or limit, lifestyle inflation.
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Compound interest is a subject that you can read about on most personal finance blogs. In fact, I have already talked a little bit about it. But I never delved into it. It is now time to cover compound interest in details.
Many people will tell you that compound interest is like magic! However, I do not consider it magic, it is only math. But how can we calculate compound interest? Even if it is not magic, its effects are really more powerful than it seems at first sight. The effects of compounding are what makes investing in the stock market so interesting. But does the stock market really compounds? Let’s try to answer these questions in this article.
I really think that compound interest is not correctly understood by many people. I hope that this article will help you understand exactly what is compound interest and why it is great.
Continue reading “What is Compound Interest? Is it Magic?”
Today, I want to discuss one question that has been on the back of my mind for a while. Can we retire early without a successful blog? The personal finance community is full of bloggers who retired early or want to retire early. However, some of these retirees are getting a hefty income from their blogs. Their examples may not be very easy to follow without such an income in retirement.
In fact, I believe that there are three problems together in this situation. First of all, as I said, can we retire without a blog income? We are going to try to answer this question.
Second, and probably more important, you should be wary of some blogger examples. Due to the high income they get, some bloggers do not use the 4% withdrawal rule that they advertise. That means that you cannot compare your situation and their situations since they are still investing after having retired. Their net worth keeps increasing after retirement. This is not because the 4% rule is working. This is because they do not have to withdraw from their principal. And this is not a common case for most people who try to follow the path to Financial Independence (FI).
Finally, I believe that you should sometimes be careful about affiliate links. They may be here mostly because the blogger wants the affiliate money and not because it is a really good product in which the blogger believes. This is not directly related to early retirees. But this is entirely related to how bloggers are monetizing their blogs.
In this post, I want to discuss these three problems in details. I think it is really important knowing about that. I went a bit overboard with the length of this post. But I think it is an important subject that deserves more coverage.
Continue reading “Can you Retire Early Without a Successful Blog?”
Since I started my journey to a better financial state, I have read many Personal Finance books. I have mostly read books about Investing. I have also read some more general personal finance books that are going all around. I thought it would be interesting to compile the list of all the books I have read so far.
Here, you will find the list of all the best personal finance books I have read. I have put them into several different categories. I will keep this page up to date with the future books I am going to read.
If you have any suggestion of book for me, I would be glad to hear about it!
Continue reading “Best Personal Finance Books”
Marc Pittet, or Mr. MP, is the author behind the blog MustachianPost. Last year, he started the project of writing a book about becoming Financially Free, or Financially Independent, in Switzerland, by the age of 40. Today, I am interviewing him about his new project, Financially Free by 40, in Switzerland.
Financially Free by 40, in Switzerland is a book about retiring early in Switzerland. This is something difficult because Switzerland is one of the most expensive countries in the world. Moreover, there is very little information on how to retire early in this country. This is something that Marc Pittet wants to change!
Thanks a lot to Marc for answering my questions. As you will see, he even provided us with some exclusive information about the book and about his journey to Financial Independence! In the interview below, things in italic are my comments and the rest is all answers from Marc.
Continue reading “Interview of Marc Pittet Author of Financially Free by 40, in Switzerland”
In 2020, Swiss investors will lose access to U.S. domiciled Exchange Traded Funds (ETFs). This is because of a new set of laws from the Swiss government. These laws are following the ones already impacting European investors. Unfortunately, DEGIRO decided to implement these laws in advance and therefore I already lost access to these funds one year in advance. Therefore, I decided to create an Interactive Brokers account.
Interactive Brokers is an excellent United States broker. It is known for its cheap fees and its excellent range of offered investment products. It is being used by many personal finance bloggers for instance.
In this post, I am going to go over the reasons I need to open a second broker account. I am also going to go over some detail about Interactive Brokers. Especially, I am going to go over the details of how to open an Interactive Brokers account. It is not very difficult but there are a few things you need to know before you start your application.
Continue reading “How to Open an Interactive Brokers Account?”
We have already covered a lot of matter on the subject of Financial Independence (FI). However, we need to go into more details about the FI Number. This is an essential Personal Finance Metric. Your FI number is the amount of net worth you need to reach before you are financially independent. It is very important to know this number exactly if you want to know where you stand in your journey towards Financial Freedom. It sounds very simple. But it is not as simple as it looks.
If you want an accurate view of your FI number, you need to estimate how your expenses will be once you are financially independent. And you also need to consider your future income. There is also a second simpler strategy where you simply consider your current expenses. We are going to see all of that, and more!
In this post, we are going to cover in details on how to calculate your Financial Independence (FI) number.
Continue reading “What is Your Financial Independence (FI) Number?”
Financial Freedom is a book by Grant Sabatier. Financial Freedom is about reaching Financial Independence, or Financial Freedom as the author is calling it. The book is set to be released on February 5th. Grant was nice enough to offer me access to a pre-release Kindle version.
It follows mostly the story of Grant who achieved FI in about five years. He was able to become more than a millionaire in less than five years although he was unemployed at the beginning of his story. His story is really interesting and motivating. Oh, and by the way, Grant Sabatier is the successful blogger behind the Millenial Money blog.
However, the book is not only about the story of Grant Sabatier. It is mostly about the lessons that Grant learned during his journey. He will try to teach you all there is to know about how to become Financially Independent yourself.
In this post, I am going to go over the Financial Freedom book into details. The things I liked, the things I did not like and what the book has to offer you!
Continue reading “Financial Freedom – Book Review”