How to Calculate your Financial Independence (FI) Ratio

Categories Financial Independence, Retirement18 Comments on How to Calculate your Financial Independence (FI) Ratio

When you have a goal, it is always good to know your progress towards this goal. If you are trying to become Financially Independent, it will be important for you to know how far away you are from your goal! For this, you will need to know your Financial Independence (FI) Ratio. This ratio will tell you how close, or how far, you are from reaching your goal.

If your goal is to become FI, you will have a certain amount of net worth that you will have to reach before you can become FI. This is your FI number. Once your net worth equals your FI Number, you are financially free. That is the main idea.

Your FI ratio will tell you exactly where you are on your path to Financial Independence. In this post, we are going to see exactly how to compute your goal and then how to compute your progress towards the goal. This could help you a lot to see if you need to adjust your strategy to reach your goal on time.

Stay tuned if you want to know when you are going to be financially free!

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Out of The Rat Race – Financial Freedom – Book Review

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I just finished reading Out of The Rat Race – The Quest for Financial Freedom, by Eric Duneau. This book is about getting to Financial Freedom and be free to choose what you want to do with your valuable time.

The author of the book reached Financial Freedom in the United Kingdom by investing in Real Estate properties and renting them. He did that by only saving about 8% of his income. This is important because most other literature advises a much higher saving rate.

This book is quite interesting to read. It is very well written and contains a huge wealth of information on the money system in the world. It offers an alternative to the common idea of Financial Independence.

Stay tuned if you want to know why we cannot trust money and how a man became financially free while saving only 8% of his income.

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9 Essential Weapons of Financial Independence

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(This post was first published on YourMoneyGeek. Thanks a lot to Michael Dinich for the opportunity!)

Financial Independence is a great thing. It means you are free to choose to do what you want and do not have to rely on your job to support your lifestyle. Who would not want that? More and more people are trying to become financially independent.

However, the road to Financial Independence is paved with obstacles. To overcome these obstacles, you will need to use all the weapons that are available to you. Mastering these weapons will make your journey to Financial Independence faster and simpler.

In this post, I am going to go over the 9 most essential weapons that are available to you to reach Financial Independence. Some of these weapons are absolutely essential while others are more optional. However, you will need to use a combination of these weapons and master them if you are serious about becoming financially free!

Stay tuned to master your fight to Financial Independence!

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The Happy Mind – Live Happier – Book Review

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I have just finished reading The Happy Mind by Kevin Horsley and Louis Fourie. This book is about living a happier life. This is the first book I ever read on happiness. Normally, the books I read and report on this blog are more related to personal finance. But as we are going to see, the two concepts are not unrelated!

This book is about how to define happiness. It is actually more difficult than it seems to define this concept. It is very specific to each people. But, by studying happy people, we can get a better view of what makes them happy. And on the contrary, by studying unhappy people we can learn even more about happiness.

From the definitions of happiness, the book goes on to give many practical tips about how to get your life in the tracks to happiness. This will not change your life overnight. But adopting some of these pieces of advice could help live your life better.

Stay tuned if you want to learn all about happiness.

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11 Best Personal Finance Metrics You Need To Track

Categories Financial Independence4 Comments on 11 Best Personal Finance Metrics You Need To Track

Personal Finance Metrics are very important! They will allow you to track your progress to success in your personal finances. Metrics have the advantage that they are easy to compare and that you can work on improving them one after another.

This is especially true if you are on a journey towards Financial Independence. You will need to track and improve many metrics in order to become Financially Independent. Just tracking a metric is meaningless, you need to make sure this metric improves over time. Or at the very least, you need to make sure, this metric does not get worse.

In this post, I will list The 11 Most Important Personal Finance Metrics you can find. If you track these 11 metrics and you work on improving all of them, you will be well ahead of the majority of people who probably do not track more than one or two of these personal finance metrics.

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Distributing Funds vs Accumulating Funds: Which is better?

Categories Investing, Financial Independence9 Comments on Distributing Funds vs Accumulating Funds: Which is better?

It can be difficult to choose between Distributing Funds and Accumulating Funds when you need to choose two funds. And the problem is also the same when you need to compare two Exchange Traded Funds (ETFs). At first, it was not clear for me which one was better when I started designing my portfolio. Now, I always prefer Distributing ETFs.

Most shares pay a dividend to its shareholders. If you hold shares of a company paying a dividend, you will receive cash dividends several times each year. Since a fund is holding many shares, every fund will receive dividends. Once a fund receives a dividend, it will have to give it back to the real shareholders: you!

There are two ways for a fund to give back the dividends back to the investors. First, it can give back the money directly to the shareholders. This is a Distributing Fund, also called an Income Fund. Or, it can reinvest directly the dividends into the funds, hence increasing its value. This is an Accumulating Fund or a Growth Fund.

Whether you talk about funds or  Exchange Traded Funds (ETFs) is exactly the same in this context. A Distributing ETF is simply a Distributing Fund traded on the stock market.

In this post, we are going to go over the differences between Distributing Funds and Accumulating Funds.

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9 Tips to Protect Your Online Personal Finances in 2019

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In these days, most of your personal finances are probably done online. You probably have access to your bank through an online banking platform. Also, you are likely to access your broker through your browser or through your phone. If someone is getting access to your online personal finances, he can do a lot of harm! You need to protect yourself!

It is very important to protect your Online Personal Finances! There are many things you can do to avoid getting hacked. Many people have very poor online security because they think it cannot happen to them. But it can happen to anybody! And some people do not care because they only think of their Facebook user for instance. You may not care about your Facebook account. But you need to be extremely careful about your Online Personal Finances!

Contrary to what a lot of people believe, anybody can be a target for hackers. You want to avoid being an easy target. Most hackers will stop early because they want to focus on easy targets. You are unlikely to be a target of a team of hackers ready to do everything to get to your online accounts.

Now, I am not a security expert. But I am a computer scientist and I have had several courses about security. I want to share with you some simple tips that could greatly improve the security of your personal finances!

Here are 9 Tips to Secure Your Online Personal Finances! If you follow them all, your online personal finances will be much more secure!

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11 Awesome Jedi Lessons for Your Money

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In honor of May 4th (May The Fourth), I gathered some Jedi wisdom for your Personal Finances. I have found 11 inspirational quotes from characters from various Jedi from the Star Wars Universe that could be applied to money lessons.

There are many great quotes in Star Wars. Mostly from the great Master Yoda and his crazy talking that makes him so well-liked. But other Jedi Masters are also generous with wisdom quotes. Most of the quotes do not directly apply to finance. Here are 11 quotes that can apply to your personal finances.

May the Force be with you. Yoda

May the Force be With Your Finances! If you follow these Jedi lessons, you may well become a Jedi Personal Finance Master!

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Switzerland is unfair to married couples

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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.

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What is Currency Inflation? How to Fight it?

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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.

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