I have already talked about the emergency fund before. Today, we are going to cover a different kind of fund: the opportunity fund. It is not as well-known as the emergency fund. And it is not nearly as used at the emergency fund either. However, I think it is important to know what it is.
As its name indicates, this is a fund that contains money waiting for an opportunity. The idea is to get ready for investing opportunities. The best opportunity in the stock market being a full-blown bear market. In this post, we are going to see exactly what purpose this kind of fund serves. And also I am going to discuss its downsides.
Continue reading “What is an Opportunity Fund? Be Ready for a Bear Market”
One thing I did not cover yet on this blog is how do we get around. You may be surprised to hear that we mostly use a car. If you follow several personal finance blogs, you may have heard that cars are almost evil. Most people will recommend you ride a bike or take public transportation.
However, I think that cars are not evil for your finances. I do not really like driving, but I like the freedom that a car gives me. Moreover, where I live, it is almost mandatory to own a car. We use it to get around nearly everywhere.
In this post, we are going to see how we get around our car and how we are traveling abroad. I am also going to detail the cost related to my vehicle. I am not going to recommend having a car for everybody. The choice is for everyone to do. But there are ways to be frugal with a car.
I can understand people who do not want to drive. If you live in a city, for example, it is not as useful. But cars are not evil! You can become financially independent and have a car! And it is a perfectly fine way to get around even for frugal people.
Continue reading “How do We Get Around in Switzerland and abroad?”
It has been a while since I have done a book review on that blog. In fact, it has been a long time since I have read a personal finance book or an investing book. But two weeks ago I saw that Think and Grow Rich, from Napoleon Hill, was at only 0.58$ on Amazon for Kindle. You can read my tips about finding cheap Kindle ebooks. I often saw it mentioned in best-of lists on several blogs. So I thought it was a good bargain. So I bought it and read it and here is my review :)
This book is about self-improvement and personal development. It is a very old book. It was written in 1937 by Napoleon Hill. Interestingly, it was written just after the great depression. It is based on the secret recipe for success by Andrew Carnegie. All this book is based on explaining this secret recipe through a series of steps.
As you will discover, Think and Grow Rich is a very special book. It is very different from most of the Books I usually read. It can teach you a lot of things, but you may have to figure out many things yourself.
Continue reading “Think and Grow Rich – Book Review”
From a personal point of view, August 2018 was a great month. We had our wedding ceremony with friends and family. Also, we went on honeymoon in Egypt. We really had a great time. We rested, swam, snorkeled and had a lot of fun. This was an awesome honeymoon :)
However, from a finance point of view, August 2018 was not a very good month. We spent a lot for our wedding and I had to take days off without pay. This means a very small savings rate. Fortunately, there was some extra income from the wedding and from the Swiss army. This helped us not being in negative this month. But at least, there was some savings ;)
Continue reading “August 2018 – Wedding and honeymoon”
You have probably heard a lot about Financial Independence. A lot of things on this blog are about my path to Financial Independence (FI). But why would you want to be financially independent? There are many reasons for wanting to be financially independent. And as you will see, retiring may not be the biggest reason.
In this post, I am going to list the main reasons people want to be Financially Independent. Of course, the reasons may not be the same for everybody. Some reasons will talk to you more than others. It is fine. Not everybody has the same motivations in trying to reach FI. And not even everybody wants to reach FI!
You may have some reasons to reach FI that I did not even think about! Please let me know in the comments if that is the case! I would like to know why you want to be Financially Independent.
Continue reading “7 Powerful Reasons to Become Financially Independent”
We have talked about many things now in the Investing Guide for Beginners series. We have covered index funds in detail. Finally, we have covered several portfolios, such as the Three-Fund portfolio and its variants and a few other lazy portfolios. But there is something we have not covered yet. It is the Target Retirement Funds.
A Target Retirement Fund is like an automated portfolio in itself. It is a fund of funds with some allocation to bonds. And the allocation to bonds is changing over time as the time of retirement is approaching.
Many people are investing for retirement. They may know, for instance, that they want to retire in 20 years. Given that and their age, it is likely that their allocation to bonds will increase over the years until retirement. Most people will do that by changing their bond allocation every few years. Either by rebalancing or by injection of new capital. But there is another way. Target Retirement Funds will automatically change their bond allocation over time.
In this post, I am going to cover Target Retirement Funds. We are going to see what is good with them and what is not.
Continue reading “Target Retirement Funds – Too Much Simplicity?”
No country is perfect. I am sure you can relate to that with your own country. It is the same for me and Switzerland. While I really like Switzerland and I plan, and hope, to spend all my life here, there are some things I really do not like about it. In this post, I am going to discuss the five things I hate about Switzerland.
I am not about to leave Switzerland and I hope I will never have to. I also wrote about the things I love about Switzerland! There are more things I like than things I hate. But I think it is important to realize that no country is perfect. Some things should definitely be improved in Switzerland.
Of course, these things will probably be different from one person to another. I know that there are some things on the list that some people like. Please tell me what you do not like about Switzerland in the comment!
Continue reading “5 Bad Things I Hate about Switzerland”
In our Investing Guide For Beginners series, we already talked about mutual funds. Instead of investing in single stocks, you can invest in many stocks at once. Mutual Funds are a great tool for investment. We are especially interested in passive funds with very low fees, thanks to index investing! Unfortunately, mutual funds are not accessible to everyone. It is where Exchange Traded Funds (ETFs) come into play!
The problem with mutual funds is their availability. They are provided by banks and fund providers such as Vanguard. If you are lucky, you have access to Vanguard via your bank. Or you can directly invest in Vanguard funds. That means you can directly invest in their low fees mutual funds. There are others like Vanguard, but they are the most famous!
If you are not lucky, for instance, if you live in Switzerland, you do not have any easy access to good mutual funds. I can bet that your Swiss bank does not offer cheap passive funds. They will probably offer you expensive active funds. At least mine does not! It is the main reason why Exchange Traded Funds (ETFs) are a very good investment tool!
In this post, we are going to learn all about Exchange Traded Funds!
Continue reading “Exchange Traded Funds – ETFs”
At the beginning of this month, I started my new job. For the sake of anonymity, let’s say I am working for Pied Piper. I hope there are some Silicon Valley fans in my readers ;) Since I am just starting working at this company, I do not want to disclose it on this blog. And since I am still anonymous, I am going to try to stay like this.
This is going to be a shorter post than usual. In this post, I will describe all the financial aspects of my new job. I am really happy about my new job. Working at Pied Piper is an incredible opportunity. In my field, this is a great company. And in the region where I live, they offer really good conditions. This will help me a lot in my path towards Financial Independence (FI). As you will see, there are many advantages when working at Pied Piper.
Continue reading “My New Job at Pied Piper – Opportunity and Benefits”
Investing is something that not enough people do. It is something that I started to do too late myself. For some people, it can be intimidating to begin investing.
But investing is not as complicated as people think. While it can be intimidating, this is something that everybody can do. But people should not start investing without doing their research.
This post is the first in a series of posts on Investing. This series of posts is to be an Investing Guide For Beginners.
It is the first post I am going to write about Investing. I am going to try to cover as much as possible on the different forms of investing. In this first post of the series, we are going to see what is investing in a broad sense.
Continue reading “The basics of investing – Why and How to invest?”