Hi everybody! Welcome to the second edition of my newsletter "Free As A Bird".
The name of the newsletter represents us - we want to be free. Free to choose how we spend our lives.
So I read that the market is down aprox. 5% since 1th of May? Anyone worried?
Check out the figure below. This is the 24th correction above 5% since the March 2009 low. They all seemed like the end of the world at the time.
If you’re still not convinced that markets always will go up in the long run, I’ll recommend you to check out JL Collins Stocks Series: Stocks — Part II: The Market Always Goes Up
Did you check out my net worth report this month? I tried a new design this month, I’ll hope you like it! Updated net worth report here.
Hopefully I’ll pass $200,000 already in july this year!
I got a job offer for a project manager job this week. They offered me $81,000. I tried to negotiate the offer, but they said that $81k was their final offer. Anyway a 7 % raise from my current job.
I talked to my former boss about my offer, and then they wanted to counter-offer on my $81k!
So my old job gave me an offer of $81,5k plus the ability to work out 2 hours in the work time every week. And they wanted me to be the leader of the engineering team and deputy chef for the manager when she is away. The only negative is that it is a 40 min commute. The $81k offer is 4 min walking.
Because of the 2 hours work out in the work time, it means that my work hours only will be 35,5 hours/week in the $81,5k offer!
What do you think? Which offer would you take?
Articles I Read This Week That Got Me Thinking
Most people live their lives for the weekend. It’s not surprising since we’ve been conditioned since we were kids to look forward to Fridays and doing whatever we want on the weekend.
But how much of yourself can you really pack into 2 days, especially when you have weddings to attend and date nights and kids and chores and laundry?
There just never seems to be enough time for anything – to read that book you’ve been putting off, or reaching out to chill with one of your friends you haven’t seen in a while, to practice that guitar you bought two years ago, or take that last minute trip.
To me, financial independence has always been about time, not money. My goal was to make work optional as quickly as possible, so I could have more options with my time. If you view money as the goal, then you miss the point. Money is infinite, but time is not.
If you don’t love your work already, then you face two choices.
Your first choice is to stay where you are long enough to build sufficient wealth so you never have to work again. Save as much as you can, learn everything you can about investing, and pursue your goal with abandon. There’s absolutely nothing wrong with this path if that’s truly what you want out of life.
The second choice is to decide life is too short to spend years stuck in meaningless work and to start doing something you’re passionate about that’s congruent with your values and interests.
My experience is most people pursuing early retirement aren’t consciously choosing a leisurely life. They have other goals or ambitions more akin to an encore career or lifestyle business, but aren’t willing to take the leap.
If that’s your goal, then don’t put a formidable obstacle like financial freedom between you and living your dream. Get started now instead.
Good investors don’t turn away from stocks when prices are down… they invest MORE when prices are lower.
Of course, coping with the economic cycles is never easy. Natural emotion and risk aversion get in the way. It’s simply part of our human nature.
What if the price falls further? Assuming you’re still comfortable with your estimate of the midpoint, just BUY MORE.
Furthermore, it’s not uncommon for a stock to swing +50% or -50% in any given 365 day period.
All this volatility is perfectly normal behavior. Anyone who desires to be invested in stocks needs to be comfortable with this level of volatility, because valuing those assets isn’t easy.
It’s not easy to continuously invest into a falling market, but it is what you need to do.
The Book I'm Reading Right Now
South Of The Border, West Of The Sun by Haruki Murakami
I’ve read this book too many times, but still get tons of value from it everytime.
I’ll write a short passage from the book that gives me goosebumps everytime I read it. Somehow I can relate it to our modern 9 - 5 life as well.
We’re working so hard, doing the same thing everyday, until we eventually die.
My favorite passage from the book:
“Have you heard of the illness hysteria siberiana?
Try to imagine this: You're a farmer, living all alone on the Siberian tundra. Day after day you plow your fields.
As far as the eye can see, nothing. To the north, the horizon, to the east, the horizon, to the south, to the west, more of the same.
Every morning, when the sun rises in the east, you go out to work in your fields. When it's directly overhead, you take a break for lunch.
When it sinks in the west, you go home to sleep.
And then one day, something inside you dies.
Day after day you watch the sun rise in the east, pass across the sky, then sink in the west, and something breaks inside you and dies.
You toss your plow aside and, your head completely empty of thought, begin walking toward the west.
Heading toward a land that lies west of the sun.
Like someone, possessed, you walk on, day after day, not eating or drinking, until you collapse on the ground and die. That's hysteria siberiana.”
What I'm Listening To
If your dream is to simply quit your job. What happens then? And you look at the answers in the subreddit, or look at the answers on blogs, most people their answer is, "I just want to sleep." That's not a healthy response to what you want for the next 45 years of your life. Let's get honest.
I would say that when it comes to how you get there, I actually think you can save too much. And I think this is something that’s not talked about in FIRE.
There’s a steeply diminishing curve of what happens when you save, you know, let’s say from 35%, to 40 to 60.
And above 60%. Lifestyle definitely changes. And what happens is ironically, for FIRE people who are so good at controlling costs, they forget to examine the cost of their savings rate.
If you’re saving 70%, you are costing yourself opportunities, and you’re just simply not focusing on the cost of that thing.
So you know, would you be better off spending, you know, 50 bucks a month doing something you loved?
Or would you know, would you be better off going out saying yes to your co workers inviting you to lunch?
If you don’t care about those things, that’s fine. But whenever I hear someone saying, you know, I’m saving 70%, I start to say, wait a second, let’s take a look at the lifestyle here. Because you can save too much, you can invest too much.
This Week's Writing
It’s motivating to see that I can safely withdraw 567,8 $ every month for the rest of my life.
I will do everything I can to raise this dollar amount in the future. As you all know my goal is to save up 600.000 USD.
This means my monthly FI money goal is $2,000 USD each month. I’m over 1/4 to my goal and it feels great!
Recently I wrote a detailed post on how I will reach a 600.000 $ net worth in only 5 years.
Say welcome to Araminta from Financially Mint!
She’s a young FIRE-seeker at age 20(!). I’m so amazed. Think if we all knew about FI at that age? *Compounding*
As she said:
"It all started with the famous book Rich Dad Poor Dad which I was lucky to discover at the age of 18. Once I finished that book I knew my life had changed. When I discovered the immense power of books, I went ALL IN."
Quote that got me thinking
“Growth happens over years. Why measure performance by everyday price movement?”
Have questions, comments or suggestions? I would love to help you.
Thanks for reading,
Route 2 FI