What Would I Do If I Retired?

Categories Retirement, Blogging, Financial Independence

There are many people who do not know what they will do if they were retired. If you are serious about reaching financial independence and retire early, you should already know what you would do in retirement. You will have a lot of time on your hands.

I already know that there are a lot of things I would do more once I retired. There are a few things I really wish I had more time to do. It is my hope that in retirement, I will be able to do more of these things.

In this post, I am going to describe the changes for me in retirement. As you will see, there are a lot of things I would like to do more in my life. I am also going to describe how I am going to organize my days. Of course, this is only a thought experiment. I am far from retirement. A lot of changes will occur in the meantime.  But it is still a nice thought experiment.

Continue reading “What Would I Do If I Retired?”

What Would You Do If You Got Given one Million dollars?

Categories Financial Independence, Budget, Frugality, Investing, Real Estate

Today, I am going to go through a simple thought experiment: What would I do if I were given one million dollars. I am thinking of several things I could with one million dollars. I am currently at the beginning of my journey towards Financial Independence. One million is more than eight times my current net worth. So this could mean a lot of different things for me!

Now, I did not invent this thought experiment at all. It was introduced by the Saving Ninja. Actually, I did not discover it on the Saving Ninja blog. I discovered it by reading about this experiment on Retire In Progress blog.

You can find many answers from other bloggers in the original post. I thought it was interesting. So I decided to try it and report my thoughts on the blog.

The original thought experiment, proposed by The Saving Ninja, was in British Sterling Pounds. And Mr. RIP did it in Euros. In this post, I am going to talk about a million Swiss Francs (CHF). But, this is currently the same as a million U.S. Dollars. So, it is the same thought experiment as getting one million USD.

Continue reading “What Would You Do If You Got Given one Million dollars?”

Not All Assets are Created Equal – Introducing the FI Net Worth

Categories Financial Independence, Investing, Real Estate

Your net worth is a very important number. This is the number representing the value of what you own. We have already seen how to calculate your net worth. This is especially important if you want to become financially independent. For this, you will need to accumulate a large net worth that is able to cover your expenses.

However, something we have not discussed in details is the difference between the different parts of your net worth. In this post, we are going to discuss that exactly. You are going to see that not every part of your net worth is equal. Some parts of your net worth should be treated differently.

If you want to become financially independent, you cannot consider all the parts of your net worth as equal. Some parts of your net worth will not help reach Financial Independence (FI)! And some assets will not evolve in the same way over the years. If you are serious about reaching FI, it is very important to know what your net worth is composed of.

To improve, you can use two different net worths. Your regular net worth as you know it and your FI net worth that will help you towards Financial Independence. So let’s see where all the different assets fit in the grand scheme of net worths!

Continue reading “Not All Assets are Created Equal – Introducing the FI Net Worth”

The 6 Kinds of FIRE: Which One Are You?

Categories Financial Independence, Frugality

The Financial Independence and Retire Early (FIRE) movement is not very old. But lately, it has started to get more and more traction. There is a ton of blogs on the subject, and we are beginning to see several articles on the media about the FIRE movement. With many different people starting to follow the movement, there are now several sub-movements with different kinds of FIRE. You probably have heard of the FIRE way. But have you heard of Lean FIRE or Fat FIRE?

It is very interesting to see what are all these different FIRE ways. All these acronyms are a bit ambiguous and can make matters a bit complicated. It is not extremely important to know what kind of FIRE you are. But it is an interesting thought!

Once you finished reading this post, you will know what kind of FIRE you are! Or maybe you will define a new kind of FIRE! And that is perfectly fine. Each way to FIRE has its differences.

Continue reading “The 6 Kinds of FIRE: Which One Are You?”

What Makes Vanguard Unique?

Categories Investing, Financial Independence

If you read personal finance blogs, you will see that most of them are advocating investing in Vanguard Index Funds. On this blog, I also recommend using their index funds in most cases. I have more than 75% of my portfolio invested in Vanguard funds. And I plan to continue investing most of my money into their funds.

There are many different mutual fund companies. You probably have heard about Fidelity, BlackRock, or T. Rowe. And there are others. But most people are talking about Vanguard. So what makes Vanguard so unique? Why is everybody recommending you invest in Vanguard index funds?

I believe they are the best mutual fund company currently. Many reasons make them so great. In this post, we are covering the main points that make Vanguard unique.

Continue reading “What Makes Vanguard Unique?”

How Much Will You Spend in Retirement?

Categories Retirement, Financial Independence, Travel

If you want to reach Financial Independence and be able to retire, you need to know how much you are going to spend while retired. If you are retiring next year, it is really easy to know how much you are going to spend. However, if you are going to retire in a long time, it is not trivial to estimate how much you will spend in retirement.

I have already talked about the different ways tor each Financial Independence (FI). Regardless of which way you choose to reach FI, you will need an accurate estimation of your retirement expenses. Without this, you will not be able to know how much of the road remains.

You could think that you are going to spend exactly the same as you spend now. But this is quite wrong. You need to take into account many things. You will normally pay fewer taxes. But your health expenses are likely to increase. And inflation will increase your expenses significantly over the years.

In this post, I am going to cover the main points that will impact your retirement spending. It is not a surefire way to estimate how much you will spend in retirement. But it will definitely help if you want an accurate estimation.

Continue reading “How Much Will You Spend in Retirement?”

5 Great Ways to Reach Financial Independence

Categories Financial Independence, Frugality, Investing, Real Estate, Side Hustle

We have seen that there are many reasons to want to reach Financial Independence (FI). Once you reach FI, you can do what you want without having to worry about money. It is awesome! You only keep working if you wish to work. This state is something most people would want to achieve. For me, my ultimate goal is to reach FI.

There are several ways to achieve Financial Independence. Indeed, there is not a single path to go from where you are now to the point where you are financially independent. Of course, there are some similarities between some of these ways. But they are different enough. Most of the time, you will need to follow several of these ways to reach Financial Independence earlier.

Continue reading “5 Great Ways to Reach Financial Independence”

8 Great Ways to Grow Your Career Income in 2020

Categories Financial Independence

We already discussed whether you should spend less or grow your income. The answer was that ideally, you should do both to reach Financial Independence (FI) faster. Let’s focus on growing your career income. There are other ways to increase your overall income, such as side hustles or real estate investment.

But I am not going to cover them in this post. I am also not going to talk about starting your own company. I will only cover growing your primary career income in this post.

Continue reading “8 Great Ways to Grow Your Career Income in 2020”

Adopting the Minimalist Lifestyle Book Review

Categories Financial Independence, Frugality

I was thinking of buying a small book on minimalism recently. But actually, I bought a pack of several books about minimalism. To be honest, I was thinking I was buying a single book but ended up with a pack. Oh well. The first book  I have read is Adopting the Minimalist Lifestyle by Ariel Horowitz.

It is a really tiny book. I thought the entire set of books was small already, but each book is tiny. It is a minimalist book about minimalism! I have been able to find it for very cheap on Kindle once again. It is difficult to find this kind of book in my used book shop. But if you are patient, it is relatively easy to find them for cheap on Amazon.

Continue reading “Adopting the Minimalist Lifestyle Book Review”

7 Best Blogs on FIRE

Categories Financial Independence, Blogging

This post is not about my blog but other blogs! As I mentioned several times in the past, I am reading many other personal finance blogs. Some blogs are purely about investing, and some blogs are entirely about Early Retirement. However, all of them contain some valuable lessons if you are on the road to Financial Independence (FI). Some of them helped make the Financial Independence and Retire Early (FIRE) movement as popular as it now. I think it is also important to share with the community and not only focus on a single blog.

There are several reasons why I read other blogs. The first reason is to learn from others. Indeed, I am far from being an expert in FIRE. I like reading what people are doing to achieve FIRE and especially what people who already achieved FIRE can teach me. Also, I love reading in general, and some of these blogs have really enjoyable content. Another reason is to get some inspiration for my blog. I am not talking about copying their blog posts. But I am talking about making my blog by learning from others.

The seven following FIRE blogs are in no order. I do not have a favorite in these seven blogs. They all are my favorite blogs. I also read many other blogs. But the entire list would be too long to publish here. I strongly encourage you to take a look at them if you are not already reading them!

Continue reading “7 Best Blogs on FIRE”