Each month, I’m 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’m going to describe the steps I’m doing every month.
I think it’s great to have a routine. This helps to get more efficient and like this you don’t forget to do everything.
Continue reading “My monthly personal finance routine – 11 things I do each month”
At the beginning of this month I started my new job. For the sake of anonymity, let’s say I’m working for Pied Piper. I hope there are some Silicon Valley fans in my readers 😉 Since I’m just starting working at this company, I don’t want to disclose it on this blog. And since I’m still anonymous, I’m going to try to stay like this.
This is going to be a shorter post than usual. In this post, I’ll describe all financial aspects of my new job. I’m really happy about my new job. Working at Pied Piper is an incredible opportunity.
Continue reading “My new job at Pied Piper – Opportunity and benefits”
Last year, I decided to go paperless with my administrative documents. It was a long work, but now I’m done. All my documents are available as electronic documents now. I’ve been able to throw away five big document binders.
I’ve used my phone as scanner and uploaded all my documents to the cloud. Find out how I became paperless for free in this post.
Continue reading “Why (and how) I went paperless”
It’s been a long time now since I wanted to write my Investor Policy Statement (IPS). I just took some time over the last week to write it down completely.
So, what’s an IPS ? Basically, it’s a set of guidelines for your investing. It will state how you are going to invest and why. It should also state how you will react to some events.
Why would you need an IPS ? The reason is to keep you on the right path when a situation trigger. If you already though of the problem and the solution to it, you know how to react. You don’t need to be emotional about it. And emotions in investing are generally a bad thing.
I didn’t invent the concept! It’s an old thing. It was at first used between a portfolio manager and the client. This was helping the manager invest in the way the client wanted. Since I’m my portfolio manager, I’m doing this statement only between me and me. I was motivated to write my IPS after I read this post by Mr. Retire In Progress. He was himself motivated by another post by Physician On Fire. I would also recommend you read these two posts if you want more information on the subject.
If you want an example, you’ll find my Investor Policy Statement just below. Keep in mind that every IPS is different and should be made for your own situation and goals. So let’s delve into my own IPS.
Continue reading “My Investor Policy Statement – You need one too!”
I just realized that this blog has been already been alive for more than six months already! Happy blogging anniversary The Poor Swiss!
The first post on this blog is from October 10. At that point, I hosted it directly on wordpress.com. It’s only been self-hosted since March 2 with bluehost.
I started blogging here to motivate me to save more each month. At the beginning, my finances were in really bad shape. I had to reduce a lot my expenses and I was also lucky to increase my income. Since the beginning, my savings rate have been increasing. March 2018 was my best month with more than 46% savings rate! I’m starting to get more confident about my finances. Of course, it’s still not perfect, but it is better.
Continue reading “First six months of blogging – Lessons learned”
I’ve been monitoring my net worth since October 2017. But I’ve not considered my second pillar into it. Why ? Because I don’t get a monthly report on my second pillar. However, I don’t really need it since I can extrapolate from the monthly results. I just was too lazy before to do it.
I decided to stop being lazy and do it. Let’s see how (and why) I did it.
If you need, first take a look at how to calculate your net worth.
Continue reading “How to integrate second pillar in my net worth”
It’s now time to make the point about March 2018. Compared to the very poor February month, March 2018 is a great month 🙂
Continue reading “March 2018 Update – Excellent month”
For the first time, I’ve computed my Financial Independence (FI) ratio. In this post, I’m going to explain to you what is FI and how to compute your FI ratio.
First, what is Financial Independence (FI) ?
It’s when you have enough money to sustain your lifestyle without working. For this, your wealth must generate income. And this income must be greater than your expenses. The main way to generate income from your wealth is simply to withdraw from it. However, you need to withdraw little enough to sustain your wealth for the longest time.
You may have heard of the 4% rule. It states that if you only withdraw 4% of your investment portfolio, it should sustain you for at least 30 years. This percentage is your Withdrawal Rate (WR) or Safe Withdrawal Rate (SWR). These rules assume that you invest your portfolio in the stock market. Generally, the rule assume 75% stocks and 25% bonds, but the asset allocation is up to you. 4% is the recommended SWR, but some people choose to be more conservative (<4%) or more aggressive (>4%). I am a bit more conservative and my SWR is 3.5%.
Now I got my SWR, how much do I need to be FI ?
In fact, it’s pretty easy. By dividing 100 by your SWR, you’ll have the number of years of expense you should save. For instance, for my SWR of 3.5%, I have to accumulate 28 years of my annual expenses. If you think your expenses are going to go up or down in the future, you should also account for that. You should use the amount of expenses you plan for FI. So, your target net worth is 100/SWR times your annual expenses.
Continue reading “How to calculate your Financial Independence (FI) Ratio”
Edit: I changed the way I’m accounting for my life insurance, this gives me a savings rate of 4.2% now.
February is now done, it’s time for another monthly update!
I haven’t posted on this blog since the last update, I was in vacation in China for more than half the month. I hope to post more in March.
Continue reading “February 2018 Update – Vacation and wedding”
Edit: I changed the way I’m accounting for my life insurance, this gives me a savings rate of 33.7% now.
It is time for another monthly update! After a good December 2017, the new year is up to great start in January with year another very good month 🙂
Continue reading “January 2018 Update – Ph.D. and good savings”