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…. Continue reading
Posts in "FIRE"
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.
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… Continue reading
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… Continue reading
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:… Continue reading
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… Continue reading
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… Continue reading
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… Continue reading
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… Continue reading
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… Continue reading