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 →

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 →

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 →

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 →

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 →

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 →