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Cost reduction: Taxes
Imagine you have a taxable income of 100’000 per year and you happen to live in the city with the highest tax tariff (Arbon TG) = you will be taxed 20’753 in the same year. Having 79’247 left, the wealth tax of approximately 0.5% per year will reduce that amount over 20 years to 71’688.…
Cost Reduction: Housing
A roof over your head is one of the most expensive thing you will pay for in your life. So its definitely worth optimising from the following angles: I highly recommend to optimize your housing situation in exact that order to get the most out of it.
Why is the inflation rate lower in Switzerland?
I stumbled on this Video and found it quite interesting. How comes that the Swiss inflation rate is substantially lower than the ones of the countries around Switzerland? He compares the situation of the Euro managed by the European Central Bank (EZB) and the Swiss Franc managed by the Swiss National Bank (Video is in…
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This is how long it will take you to be financially free / retired
How long will it take until I can set my cubicle on fire, tell my boss to go f*** himself and chill on the beach all day long? Let’s find out! What is surprising in financial planning is that the duration until you have enough savings to live from them doesn’t depend on your expenses,…
Cost reduction: Health insurance (Swiss)
I did most of my career in the insurance business and used to consult private costumers on health insurances (among others) in Switzerland. All the knowledge in this post is based on a profound experience of many years. To make the content easily actionable I had to simplify or generalise some elements. This is why…
Level 2: Reduce your costs
Once you know where you are and you have a system installed to manage your money you are ready to tackle the first leverage towards financial freedom: the reduction of your costs. Reducing your costs is a leverage for FIRE Leverages always have a big impact and so will reducing your costs. For every CHF…
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What the NFT?
NFTs or non fungible tokens are very hyped in the crypto space. If you are interested in that topic, I recommend you to check out the Video “Line goes up” by Dan Olson. The video covers his very knowledgeable view on crypto in general before digging quite deep into the NFT phenomenon an its issues. …
Inflation hits 50 Cent
Scrolling on the scientific website 9gag.com, I stumbled on this meme: Although it’s funny, I have bad news: It’s totally wrong. Fifty was born in 1975 – 0.50 USD back then have now the buying power of 0.08 cent, meaning that he would have to change his name to 275 cent or 2.75 USD to…
Level 1: Install a system to manage your money
I realised that I have the tendency to naturally spend my money based on how much is left on my bank account (keeping a small reserve) rather than spending for what I really need. To solve this, just detach your spending-budget from your savings. In order to be able to optimise my expenses (Level 2:…
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June 2022 Crypto Crash | Greedy Millionaire | FIRE Handbook
Hi, last month I stumbled on many cryptos crashing, a conversation with a greedy millionaire and continued working on my personal FIRE-handbook: June 2022 Crypto Crash June 2022 has seen a second crypto crash in the trading year to date. Back in May, the collapse of Terra / Luna wiped 500’000 millions from the crypto…
FIRE Handbook
This is the handbook I would have given myself 10 years ago – when I started my journey towards financial independence. Expect a very condensed and hands-on handbook with 8 simple levels: It is still work in progress, my aim is to cover 1 level per month starting May 2022. BasicLevel 0: Know where you…
2nd Dot-Com Bubble? | The Problem Of Fiat And Ethereum | My Personal FIRE Template
Last month I stumbled on the bursting of the 2nd dot-com bubble, a historical perspective of the fiat system & bitcoin and started working on my personal FIRE-handbook: Did the 2nd dot-com bubble burst? In my opinion, Yes. Look at the crazy corrections: So what? Time to buy the dip? I decided to stop buying…
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How to do simple net worth projections?
I use 2 very simple methods to get a hint on where my net worth will be in X years: Take a simple savings rate calculator and add: actual net worth as starting point monthly saving amount period yearly yield (I only use 4% which is considered on the safer side if the money in…
How to calculate my FIRE number?
The FIRE number is the net worth you need to have so that it (once invested) will support your expenses (until you die). That means, once you reached that amount, you are financially free. Here’s how you can calculate it Yearly expenses * 25 = YOUR FIRE NUMBER Example: Let’s assume your expenses are 50’000…
How to calculate my savings rate?
The savings rate is the share of your income after you deducted all expenses: Expenses = 6’000 Income = 10’000 Savings = 4’000 Savings rate = 40% What is the savings rate for? The savings rate is one of the most important performance indicator for financial freedom, its tells you if you are moving towards…
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Crash Action Plan
Emotions are the reason why many investors buy high and sell low. In order to avoid that I try to detach my emotions from investing. The market is crashing in average every 12 years, so I should experience 7 crashes in my life and thought that having an action plan would be the way to…
My personal FIRE Template
The main purpose of my FIRE Template is to achieve the goal of financial freedom. This template tells me where I am now, how for am I away from financial freedom and am I moving towards or away from it. How to use it? Click here to access it and make a copy. I suggest…
How to calculate my assets?
Let’s look at the definition of an asset. The definition from Wikipedia is “…an asset is any resource owned or controlled by a business or an economic entity.” This means that everything you as a private person own and is valuable to somebody else is an asset. But not every asset is relevant for financial freedom, so I focus…
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