The 13 Steps of My Monthly Personal Finance Routine

Categories Budget, Financial Independence16 Comments on The 13 Steps of My Monthly Personal Finance Routine

For a lot of people, having a strict routine will help remember essential things. It is the case for me. I like routines. Each month, I am following the same personal finance routine for my budget. You can see most of the results in my monthly finance reports. In this post, I am going to describe the steps I am doing every month.

I think it is great to have a routine. It helps you get more efficient, and like this, you do not forget to do everything. And once you start doing it routinely, it becomes automatic, and you will save time.

Of course, you do not need to follow the same steps as me. You should probably not have the same steps. Every people can have different things to do based on the way they are investing or based on their situation.

But I would encourage you to define your at least a monthly routine clearly. You can use mine as a base template if you want. And why not even a weekly routine?

So, here are the 13 steps of my monthly personal finance routine.

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10 Personal Finance Myths You should ignore

Categories Financial Independence11 Comments on 10 Personal Finance Myths You should ignore

There are many personal finance myths out there. And many people believe in these myths very strongly. Basing your decisions on myths can do a lot of damage to your finances.

For instance, many people believe only the rich can invest in the stock market. It is just a myth. Anybody can invest in the stock market. And many personal finance myths like this are being propagated.

Many of these personal finance myths can be detrimental to your finances. Some will not make significant impacts. But some could ruin your retirement plans.

Without further ado, here are ten personal finance myths that you should learn to ignore.

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8 Money Management Tips That Will Free Up Time

Categories Financial Independence6 Comments on 8 Money Management Tips That Will Free Up Time

Today’s post is a guest post by Financial Wolves, a blog about making money with side hustles to help you achieve financial freedom. I am very happy to have them as a guest poster today. 

Most people hear the phrase “personal finance” and run the other way. However, personal finance is not something to be scared or nervous about. About 50% of all American households live paycheck to paycheck.

At the same time, only 30% of them have long-term financial plans. Therefore, learning money management tips is more important now than ever.

Without proper money management, you are risking your finances. Being smart about personal finance means you are prepared when life throws you curveballs.

Let’s say you are fired or going through health problems.

If you did not have the foresight to plan your finances, what are you going to do? Money management is a vital part of financial planning. If you do not know how to go about it, read on for some easy money management tips.

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My 11 Biggest Investing Mistakes – How to Avoid Them!

Categories Investing, Financial Independence24 Comments on My 11 Biggest Investing Mistakes – How to Avoid Them!

Everybody will make some mistakes in his life. There is no way around it. Over the years, I made many investing mistakes.

One thing that is very important with mistakes is that you learn from them. Not only should you not repeat your mistakes. But you should also improve your knowledge after you have made this mistake. You need to understand why this was a mistake and how not to do it again.

It is crucial to learn from your mistakes. And it is also essential to recognize your mistakes. There is no value in thinking you cannot make mistakes. And there is no value in ignoring them. I am not very proud of my investing mistakes. But it is better to talk about them than ignore them! And people can learn a lot from the mistakes of other people.

In this post, I will talk about my eleven biggest investing mistakes and what I could have done better. It is also the story of how I got into investing early and left very early. And finally started investing again way too late!

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A Free FIRE Calculator – Find your chance of success

Categories Financial Independence6 Comments on A Free FIRE Calculator – Find your chance of success

To choose a safe withdrawal rate, you need to know its chances of success. For that, you can use historical data from the stock market. This lets you see the chance of success for each withdrawal rate. Today, I am making this easier for everybody with a free FIRE Calculator!

Recently, I have been playing a lot with Withdrawal Rates simulations. I am using a lot of data from the U.S. stock market to see which withdrawal rates are safe and which are not.

I have written a tool that can do the simulations for me. I have already released some results with this data.

Today, I am going to share a Withdrawal Rate Calculator that you can use to do the simulations for yourself. And I am also going to share the data and the tool I am using!

You can use this calculator to know which withdrawal rate you should be using. You can tailor the simulation to your situation.

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Should you rebalance your portfolio in retirement?

Categories Investing, Financial Independence7 Comments on Should you rebalance your portfolio in retirement?

One question that many people have is whether they should rebalance their portfolio or not. And this is even more important in retirement.

Rebalancing is the fact of selling the shares that have overperformed and then buy the shares that underperformed. The idea is to keep your portfolio allocation to the same level.

People do not agree on whether you should rebalance in retirement or not. People do not even agree on that during the accumulation phase. So we are going to cover this subject as well.

And since I have now a lot of data about the stock market, I figured it would be great to use. So, I am also going to simulate whether it has historically been better to rebalance or not.

The data on this article is based on more than 3.2 million simulations of withdrawal rates! Without further ado, let’s delve into rebalancing!

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Sequence of Returns Risk can ruin your retirement

Categories Financial Independence11 Comments on Sequence of Returns Risk can ruin your retirement

If you follow any blog about Financial Independence, you probably have heard about Sequence of Returns Risk. Even on this blog, I talked about this concept. But do you know exactly what it is?

A sequence of Returns Risk, or simply Sequence Risk, affects people that regularly invest or regularly withdraw from their portfolio. When you invest, they should average out. But this is more important when you withdraw. The main idea is that negative returns in the early years are much worse than in the later years.

It is a bit difficult to explain with words. But it is very easy to understand with examples. I will show the difference that sequence of returns risks can make to different scenarios.

So let’s delve into Sequences of Returns Risk and what to do about it.

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Emergency Fund – Do you Really Need One in 2020?

Categories Budget, Financial Independence, Frugality, Investing16 Comments on Emergency Fund – Do you Really Need One in 2020?

If you are interested in personal finance, you probably have come across the term Emergency Fund. An Emergency Fund is simply some money, available directly, that you can use in case of emergency. Most people will advise you to get such an account. And they will insist heavily on this subject.

It is an interesting subject since not everybody agrees on it. Some people have an emergency fund that can cover one year of expenses. And some people think you do not need one.

Personally, I do not think an emergency fund is a bad thing. But you should be aware of its cost. It also has disadvantages. And you may not need a fund as big as some people tell you. I think that too much people put too much emphasis on the emergency fund.

In this post, we are going to see both sides of the story. We are going to see in details what an emergency fund is.

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How to retire early in Switzerland?

Categories Financial Independence, Switzerland10 Comments on How to retire early in Switzerland?

Many people want to retire early! The Financial Independence and Retire Early (FIRE) movement is taking in a lot of momentum. But, few people want to retire early in Switzerland. So, is it even possible to retire early in Switzerland?

I believe it is possible to retire early in Switzerland. But for that, you need to know the differences between Switzerland and other countries. Since most FIRE people are in the United States, we need to know what changes here. It is necessary to see if it is possible and how to adapt to it.

Even though it is possible, I think it is more difficult to retire early in Switzerland than it is in the United States. But some people, including me, could not retire in another country than Switzerland. I would rather continue working my whole life than have to move.

In this post, I am trying to see whether it is possible to retire early in Switzerland. And also, how can we retire early in Switzerland?

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8 Good Habits of Financially Successful People

Categories Financial Independence10 Comments on 8 Good Habits of Financially Successful People

To become more successful with our money, we can copy what financially successful people are doing! We should see the most important money habits and traits that they have. Once we know that, we can imitate them and improve our finances.

I am going to talk about the most essential habits of successful people. I am not only talking about rich people here. But I am talking about people that are smart with money, and that can reach their goals. This could be people that can retire early. Or that can be people that accumulate ten million dollars.

There are many ways to be successful with money. And we can learn from all kinds of people.

So, let’s see what are the eight most important good habits you can learn to improve your finances!

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