You Want to be Rich? Become a Craftsman

This will go against everything you know about becoming wealthy and your education choice. But if you are just about to leave school. And you don’t know what you want to be. Becoming a craftsman is superior if you want to be wealthy. 

The normal advice would be to have one of the following educations if you want to be rich: 

  • Doctor
  • Lawyer 
  • Engineer 
  • Banker 

These are all high paying jobs. But they are still not superior to be a craftsman and here is why.

It only Takes 3.5 years 

Going directly from primary school to a mason apprentice means that I was done when I was 20 years old. 

At the age of 20, I had a take-home pay of about 20.000 DKK/month and no student debt. 

Because I was a part of the national rowing team I decided to study as a building constructor because it was to tough being a mason and a rower at the same time. 

I finished my building constructor studies when I was 26 years old. Which is a normal age of being done with a normal high paying education. 

If I had Continued as a Mason

As I’m writing this my net worth is about 500.000 DKK but I do have 100.000 DKK of student debt from building constructor studies. My entire net worth is from working as a building constructor. I have never heard of FIRE when I was a mason. 

If I had heard about FIRE as a mason I would have had a 6-year advantage on the constructor me. Which could be a networth of 858.000 DKK, compared to my 100.000 DKK of student debt as a constructor. 

Said in another way, I would almost be 1.000.000 DKK ahead. 

As I’m turning 30 years old in a couple of weeks means that I would have been working as a mason for 10 years. Even though I spend every dime I had. My spending could have been just the same as today. I lived in the same cheap apartment and would eat the same way as I do now. 

If I had managed to save 60 % of my 20.000 DKK/month for the last ten years with a 7 % return on my investments I would have a net worth of 1.700.000 DKK and no student debt. 

Or 3.4 times as much money invested as I’m currently having.

I Will Never Catch Up

On top of my 12.000 DKK/month savings from my work as a mason, I would have a 7 % ROI on my 1.700.000 DKK which is 120.000 DKK. 

144.000 + 120.000 = 266.000 DKK/year

My take-home pay as a building constructor is about 300.000 DKK year. That means my savings rate should be 89 % just to have the same investment as the “mason me”.

With an 89% savings rate, I would only have 2700 DKK/month to live off. I don’t know about you. But I would find it very difficult to live in a big city on 2700 DKK. 

2021 The Mason and Constructor 

This how my 2021 could look like as a mason:

Invested: 1.700.000 DKK
Return on investments: 122.000 DKK 
Saved from salary: 144.000 DKK 
Total networth: 1.966.000 DKK 

And this is how my 2021 could look like as a building constructor: 

Invested: 500.000 DKK 
Return on investments: 35.000 DKK 
Saved from salary: 200.000 DKK 
Student debt: 100.000 DKK 
Total networth: 625.000 DKk 

The mason me is increasing his networth with 266.000 DKK/year and the constructor me is only increasing with 235.000 DKK/year.

Let’s have a look at what my networth would be in 2055 where I will be close to my normal retirement to see if I will catch up. (Both get a 7 % ROI.)

Constructor: 31.800.000 DKK 

Mason: 34.800.000 DKK 

Yep, I was right. I will never catch up.

No Student Debt 

The superior thing to be an apprentice compared to studying is that your pay increases as the year goes. 

When you start as an apprentice you will have similar pay as a student. (If you are Danish, it is even more superior if you have to pay for your education) 

If you come from primary school to an apprentice job, you are probably still living at your parent’s place because you are young. 

But if you are an adult. You will have a higher starting wage due to the reason that you are an adult and have more expenses than a kid. 

But almost everyone I know from my mason school didn’t have a student debt when they were done. 

Compared to my building constructor friends where it was normal to have +200.000 DKK in student debt. 

Not having a student debt to pay is a super advantage to build wealth, but it is also a super nice feeling being debt-free. 

Coast to The 1 % Wealthiest in Years 5

What if I told you that you can become a part of the wealthiest Danish people in just 5 years as a 25-year-old?

The wealthiest Danish people is about 70 years old and have a networth of 14.000.000 DKK.

If you are like me and finished your apprentice when you are 20 years old. You will likely have 20.000 DKK/month. 

If you save and invest 50 % of your salary for five years with a 7 % ROI you will have: 

690.000 DKK 

Not too bad. But it gets better. 

If you just leave that money invested (7 % ROI) from age 25 to 70 you will have no less than: 

14.500.000 DKK 

And you have only worked five years to get there. From that point on you can work part-time, or seasonal for the rest of your life. 

You can only do that because you started early. At age 30 you need to have 1.000.000 DKK invested to have the same results. And I currently only have half of that.

You Can Do Maintenance Yourself 

We are more than likely the end up living in an apartment or a house. And I can’t tell you how much money I have saved on doing stuff myself. 

A small renovation of a bathroom can cost a fortune if you let somebody else do it. But the materials can be bought for a bargain. 

Even if you want to live one a boat. It becomes handy to know the basics of any craftsmanship. 

Easier to Invest In Real Estate

As I’m writing this I’m about to do my first real estate business. Even with my background as a mason and building constructor, I find it terrifying to take out all of my hard earned money into a real estate deal like that. 

I can’t imagine how it would be to do a real estate investment with no knowledge at all. 

You Will Always Have Work 

Look around you. 

Everybody lives in a building that someday needs some sort of renovation. You will NEVER become unemployed for more than a couple of months. There is no pseudo work here.

And it is one of the easiest places to become self-employed. 

And it is something you can do all over the world. Even philanthropic.

Related Articles

How LITTLE Money Do We Need In Order to Retire Early?

How Much Money is Enough? Fuck the 4 % Rule

How I’m Retiring in 5 Years or Less, and How You Can Too

Blog Sponsor

A fellow danish money blogger is this post sponsor. His name is John, and he writes in danish about hands-on money-saving tips and other money/finance related stuff at vilebo.dk

How I Write Articles from my Phone, And Why You Should Too.

For a year I chose not to have a phone. It all started because I only had a phone which my previous work had provided. And when I stopped there I had to turn it in. I thought to myself that I would be nice without a phone for a couple of days. So I decided to look for a private phone next week.

When next week arrived, I realized have awesome it was not to have a phone. I had no idea that there was so much stress related to that little thing.

For the first time in a very long time, I felt it could be boring to wait for the train. But it felt good. I had nothing to do other than waiting for my train. Just standing there. And look out looking at other busy people.

How I do It

I like to keep as simple as possible:

  • Do five lines of writing a day (which is the equivalent of 50 words)
  • Do it in the note app (it is simple but effective)
  • Send that to myself through messenger or an e-mail.
  • Proofreading in Grammarly.
  • Publish.

Set Pathetic Writing Goals

My “5-lines-day-goal” will seem insignificant for most people. But it is a goal that makes it easy to do. Just grab the phone. Skip social media for 2 minutes and write whatever I feel like. Writing 50 words a day will turn into a 700-word blog post every 14th day.

Often I write more than the five lines. Because I feel like it when I first have started. But the hard part for me is to start. Some days I feel like writing by the computer. But I know that I will never be the writer that I would like to be if I have to sit down at a desk.

3 hours and 15 minutes

That is the average screen time for a smartphone user. Writing on the phone is by no means fast. I write the five lines in 2-3 minutes. Which I could do in 1 minute on my computer.

But I know from myself that if I had to sit in front of the computer to write. I would write much less.

On The Move

Often I get good ideas when I’m on the move. It can be on my bike. Going up some stairs or another thing. When that happens, I can just grab my phone. Start a headline, write a couple of lines on the new idea.

Deadtime = Productive time

It’s normal to see people stand in line, waiting in the waiting room or waiting for your public transportation with their smartphone in the hand. This could be a productive time. But often people just scroll mindlessly through their social media platforms (I do this as well).

But if I instead open the “Note” app on my smartphone. Write a couple of sentences that we have on our minds. And then go on with our lives. I believe that habit can turn your life around. You can start publishing articles on whatever topic you like. And maybe eventually you will be the expert in that field.

Embrace Imperfectionism

I do have days where I don’t meet my pathetic goal of five lines. But that is okay. I would lie if I told you that I hate when I don’t meet my goal.

But instead of getting too pissed. I focus on the goal for the next day. I move on. It is human and inevitable not to fail on your goals. It will be the people who continue to grind who will be what they want.

The avid reader might notice that I do have long periods where I don’t post anything. And that is because I’m human. Everyday life gets in the way.

And don’t be afraid of mipsellings. I use a software called Grammarly. I use that one time. And then publish. Misspellings will occur. But your message will still be there. Don’t worry about the people who can’t see through your tiny mistakes. They are the ones who fear the judgment of their own mistakes the most.

The Inner Resistance

I get many emails from people who wants to start writing but they fear what could happen if they started to do so. The be honest the inner resistance never goes away.

At this moment I’m starting to approach the 100th blog post. And I still feel a bit of resistance whenever I start a new post. I do not expect this feeling to ever go away. And instead, I have started to embrace this inner resistance. And the bigger it is, the more I need to do the thing I fear.

Become An Expert in Anything

By studying 20 hours you will know the basics in any field. 20 hours of studying equals to 2-4 books. Now you know more than 80 % of people. And from this point on you can start to teach others about the basics. You can become a known local expert in any given thing by studying an hour a day in three years or less.

Imagine that you attended a school where you decided what to study and which authors you should read. No one is going to determine that this is the right author to read about. You decide it, and you decide whether or not you liked what you have read. That is a super powerful tool.

No Matter How Old You Are

This how your to-do list would look like to become an expert in any field:

  • Go the library and get 2-4 books on your new topic
  • Start a webpage where you write from your phone 3+ minutes a day
  • Keep reading and teaching about it, and in 100-200 books you will be the expert

No more no less.

The Workshop

I have just made a brand new workshop.

It is for you, if you feel like investing is complicated and overwhelming. It is not.

Check it out here, the early bird tickets are still available!

24# My Monthly Financial Independence Update

This month savings rate: 60 %

12-month rolling expenses: 101.000 DKK (16.000 $)

My Coast FIRE number: 5.598.000 DKK (890.000$) or 56 years of living expenses.

Speaking At Three Schools

The previous month I have been speaking at:

Oure Højskole

Egå Ungdomshøjskole

Brandbjerg Højskole

And it has been super awesome! At every single school, I had to be there an hour or more, because of the curious questions they got.

I do this because I want the danish youth to know that there is an alternative way to life. And there is no one teaching us this stuff at school.

So feel free to write to me, if you want me to come to your school too.

Two Years of Blogging

I hate the word blogging. I don’t see myself as a “blogger”. It has become a negative word of people who are hungry for attention. I think it’s sad.

I think that way more people should start to produce their own content. I don’t care if it is video, recordings, or writing. Just producing stuff is super nice. You get to meet/start a new community of people.

I enjoy it.

Back at Brewing

Today I’m starting as an intern at Bøgedal Bryggeri again.

This time it will be for four weeks. And we will be doing nothing but brewing. The last couple of days we brewed 800 L of and IPA ish beer, and 800 L of what they call a “New Year Nectar”.

The feeling of starting here is just like being a mason apprentice again. And I enjoy the feeling of being with somebody who is super good at what they are doing. But it is hard to learn and listen for 10+ hours. Meanwhile, you are working your ass off with 800 L of boiling water. But it is fun!

My New Workshop

After a long time thinking and hesitating to do a workshop. I have finally made it.

The workshop is for you, if you are into the whole FIRE philosophy, but is intimidated or confused about the investing.

Check it out here. 

23# My Monthly Financial Independence Update

Stocks & Coast FIRE ('000)

This month savings rate: 77 %

12-month rolling expenses: 96.000 DKK (15.200 $)

My Coast FIRE number: 5.438.000 DKK (751.000$) or 57 years of living expenses.

7 Speaking Gigs

Here is the update. Better late than never. It is late because I’m working hard on a presentation for 7 speaking jobs in the next couple of months.

The majority of the speaking will be on schools. Which I look forward to. I would have loved as a young adult to get all of the FIRE knowledge as soon as possible. I know it would have been a game changer for my FIRE journey if someone has taught it to me as a teenager.

I got all this information as a 25 year old. And I’m super glad I didn’t get to know it as a 60 year old.

So that is why I have made a mission to teach young kids the philosophy and math lesson that every kid should have in school about finances, investing and environmental consuming.

For the next two weeks I will be sailing around in Denmark to the different speeches.

You can write me at Loui@wannabewalden.com, if you would like me to come and speak at your place too.

Looking Into Buying a Vacation House

Without going too much in details about my researching. I’m about to buy a vacation house. Not for pleasure, but business.

This vacation house is a hidden gem. The owner has not used it for 15+ years and it looks miserable. But it is the perfect buy for a guy like me, with a background in the construction business.

The owner is willing to sell for around 100.000 DKK (15.000$), and the neighbor house has just been sold for 800.000 DKK (126.000 $). So with a bit of renovation I might be able to sell a brand new vacation house for +900.000 DKK (140.000$).

Stay tuned.

Workshops

Ready for the WWW?

Slowly I have started to make some progress on the:

Wannabe Walden Workshop.

It will be for you who would like to get started with investing and simplifying your life. But has a hard time to start doing so.

And! The first couple of workshops will come at a starting price of 100 DKK (15 $).

It will include:

  • Insights in my portfolio and investment Philosophy
  • A private Facebook group
  • Invitations for yearly meet-ups
  • A forum where there is room for “stupid” questions
  • You will make your first investment

Stay tuned.

Thanks To My Sponsor

Again again again.

Thanks to my sponsor Vilebo.dk for sponsoring!

Why Living On a Boat Is One Of The Cheapest (and Awesome) Way To Live

Last month I did my biggest purchase in years. It might even be my most expensive purchase ever.

I bought a boat. 

The book I named this blog after (hint: its Walden), made a huge impression on me. The part of building a small cabin and living in the woods was super appealing to me. But I must be honest. I like water more than the woods.

But buying a boat has always been scary for me. Boats are expensive and need constant repair. But. If you buy a small boat, it’s easier to fix things. And they not just cheaper. They are WAY cheaper.

Spare parts on boats cost exponential more as they increase in size. And smaller boats just need fewer spare parts. So there is not too often something to fix.

Hedonic Adaptation on Boats

I don’t have a toilet onboard. That will scare a lot of people because they don’t know where to take a shit. People I have onboard are often relieved when I tell them how often they break and it is not fun to fix a toilet in +2m waves and there is shit all over the floor.

To be honest. It is sort of nice just to take a shit in the ocean. And when you do get back to an ordinary toilet. You will appreciate much more than you normally would. Essential stuff as cooking becomes a bit of a project. But I like that. It involves everyone on the boat.

Living on a boat is the highest highs and lowest lows. That is what I love about it. What we are taking for granted in our normal lives becomes a huge luxury. Having a fridge packed with delicious foods is not something we truly enjoy. But when you have been on a boat for a couple of weeks. That is a huge luxury. But it is also nice to come back to the boat where everything is super simple.

The Economy

There are several reasons why a small boat is preferable to a big boat.

  • Cheaper to buy
  • Easier to sell
  • Doesn’t drop in price
  • Cheap maintenance
  • Easier and cheaper to find a harbor
  • Cheap Insurance

This the breakdown of what I have bought my boat for.

The cost of the boat was 29.000 DKK.

Then I needed to buy some miscellaneous stuff like tools, life jackets, and similar. That costs me 2.000 DKK. 

As a rule of thumb. It will cost you 20 % of the purchasing price in maintenance. Which will be 6.000 DKK. That is a pretty high number. Basic maintenance will cost me no more than 2000 DKK. But if I keep it for years I must eventually buy a new motor, sails, and similar. And each of that item is in the “pricey” end of about 6-7000 DKK.

A base harbor place is super cheap when you have a small boat. My boat has received a spot in Ærøskøbing at the moment. And a spot in that harbor costs 3000 DKK annually. That is utilities included. I know that in Copenhagen it is around 4000 DKK annually. So just let’s go with an average of about 3500 DKK. 

The insurance as shall have by law. Comes at the ridiculous price of 240 DKK annually. Which I gladly pay.

To Sum It Up

  • Cost of the boat = 29.000 DKK
  • Miscellaneous stuff = 2.000 DKK
  • Maintenance = 5.000 DKK
  • Harbour fee = 3.000 DKK
  • Insurance = 240 DKK
  • Total = 39.240 DKK

The price of buying a ready sailboat will be about 40.000 DKK. It could probably be done cheaper. But this boat was a bargain at that price. Someday I will be selling it again. The cost of the boat and miscellaneous shopping is money I will get back again.

So the annual cost of having a boat is only:

  • Maintenance
  • Harbour fee
  • Insurance

Which is = 8.240 DKK annual or 686 DKK/month.

My Monthly Finances the Apartment

Is something like this.

  • Rent 3300 DKK
  • Insurance 300 DKK
  • Utilities 300 DKK

Total = 3.900 DKK 

Living in a small boat compared to living in a really cheap Copenhagen apartment is almost 6:1. 

For months of rent in the apartment, I can live the whole summer on my boat. What about winter? Living on a small boat is probably not for everyone. And I might think that it won’t be for me either in the cold Danish winter months.

That is why I’m thinking of the perfect mix of living on a boat in the summer. And having a vacation house (sommerhus) during the winter. Renting out a vacation house in Denmark has a lot of tax benefits. And I would get the best rate when the weather is best here in Denmark. But that doesn’t matter. That is where I prefer to be on a boat. So I could rent out the vacation house during the summer. And living in it myself for free during the winter. And in 20 years-ish I would have a vacation house that has been paid off by the tourist.

Another thing I’m considering is to sail the boat to the Mediterranean sea. I love every single country down there and the sailing season is just much longer (and probably) nicer because of the warmer weather. During the winters I could put the boat on land and go home to Denmark to earn some money and hang out with friends and family.

Coast FIRE and Living On a Boat

If you read this at 20 something years I would really encourage you to live on a boat for a short period of your life. It is filled with adventures, and you will save a lot of money which can compound into a fortune.

If we compare living on a boat and living in a cheap apartment. With my finances as an example.

Living on a boat costs 700 DKK/Month

Living in cheap apartment costs 3.900 DKK/Month

You will save 3.200 DKK/month or 38.400 DKK/year. 

If you are 25 years old and you invest those 38.400 DKK, they could compound into:

626.358 DKK when you are 65 years old with a 7 % ROI.

So go ahead, live on a small boat, while you are working a year or two. Sail out in the evenings with some of your friends with some pizza onboard. Dump the anchor in and have a blast.

You will get an enormous amount of street credit from your friends and it is a perfect spot for a date as well.

Do that for two years and I have made you rich.

Blog Sponsor

A fellow danish money blogger is this post sponsor. His name is John, and he writes in danish about hands-on money-saving tips and other money/finance related stuff at vilebo.dk

22# My Monthly Financial Independence Update

This month savings rate: 67 %

12-month rolling expenses: 102.000 DKK (15.500 $)

My Coast FIRE number: 5.438.000 DKK (751.000$) or 54 years of living expenses.

Light Brush Up For The Updates

I have made a little change to the graphics of my monthly updates. I want to emphasize the power of Coast FIRE, and that is why I have removed everything except for the blue line which is my current net worth in stocks.

The red line is my current net worth but with a 7 % ROI till the day I’m 65 years old. Most of the people I know who have “reached” FIRE don’t spend any of their money from the portfolio. If that is the trend. Why should we spend years and years to save up for the magical 25 times your annual spending, if you are not even using them?

Let the money do the heavy lifting instead.

Traveling Around in Denmark

I’m still on welfare (Dagpenge) and is just going around in Denmark. Either by train or by boat.

I have just bought a spot for my boat on Ærø – Ærøskøbing. So that is my base at the moment. But you can find me all over the country at the moment. The island community is something I love. Visiting all of the fine islands we by boat is something that I enjoy.

Data You Miss?

Let me know if there is some data in the monthly updates you think I can add. It could be my expenses, savings rate, or something third.

Thanks To My Sponsor

Again again.

Thanks to my sponsor Vilebo.dk for sponsoring again!

My Kakeibo Experiment, Part Three (Final)

My Kakeibo Experiment, Part One

My Kakeibo Experiment, Part Two

I did this experiment because I read in Your Money or Your Life that you could cut your expenses at least 20 % by keeping note of every cent that goes in and out of your life.

So I wanted to do a three months experiment to see if that claim was true.

Spending

In May I had the following spending in the four categories:

Category 1 (Necessities) = 2.425 DKK (231 $)

Category 2 (Wants) = 1.874 DKK (134 $)

Category 3 (Unforeseen) = 0 DKK

Category 4 (Investing) = 30.000 DKK

Total spending = 4.299 DKK (432 $)

The Averages

Average amount pr. transaction = 195 DKK (24 $)

Average amount pr. day = 139 DKK (14 $)

Average transaction/day = 0,7

The Comparison

Catapril 2020march 2020may 2020% Improvement
1571315522425136
278898991874321
35584500GREAT
40030000GREAT
Total1416029014299228
april 20′march 20′may 20′% Improvement
Amount pr. trans186161195-5
Amount pr. day45697139228
Transactions/day2,450,60,7250

To Summarize

Did I improve more than 20 %??

Oh yes, I did! 

From my worst month (April) to the previous month I improved 228 % on average. And I improved 321 % in category 2 which is the “Wants” category I would like to have close to zero spendings in.

Go ahead and try it yourself. Let me know if you can improve at least 20 % as well!

Blog Sponsor

A fellow danish money blogger is this post sponsor. His name is John, and he writes in danish about hands-on money-saving tips and other money/finance related stuff at vilebo.dk

21# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 0 %

% change since last month: -2,4 %

My Coast FIRE number: 4.981.000 DKK (751.000$) or 50 years of living expenses.

Sailing 14 Days in Denmark

Just because I have been sent home from South East Asia due to the coronavirus, doesn’t mean that I don’t want to sail.

The weather looked good, and my dad and his friend shouldn’t use their boat for 14 days. So I grabbed the phone and called two of my old folk school friends, and asked them if they wanted to go on a trip with me for 14 days.

Without hesitation, they both answered yes.

The 14 days cost us about 3.000 DKK (450 $) each, which I think is a small amount for a trip that seemed like the most awesome holiday. We could easily have done it for half of that amount.

A picture says more than 1000 words, so here is an 11:46 min long video of the whole trip. It is my Instagram stories on @LouiLam compiled into one video.

(Don’t judge me on the editing, it took me less than two minutes)

I Bought a Boat!

The slight dip in my networth is because I have just bought a freaking boat! I have always wanted to live on a boat but have been terrified about how many expenses there are in having a boat.

My dad bought a book called “Pocket Cruising og Mikroeventyr”, where he suggests to buy a small boat because they are super cheap to buy and maintain. And I was sold instantly.

Looking at small boats I quickly fell in love with a boat called L23, which is an old danish glass fiber boat from the late ’70s.

I think it might be one of the smallest boats that feels like a boat. And not a dinghy.

On one of our last days on the sailing trip, one of my friends found an L23 for sale for 29.000 DKK (4.380 $). The sale ad was less than 2 hours old when I wrote to the seller that I was interested in the boat, and I would like to have a look at it. Our sailing trip ended on a Friday, and on the following day, I bought this beauty.

I’m super inspired by Henry David Thoreau who builds a little shack in the woods and lived in. And I was super inspired by the book my dad bought.

This is going to be my Walden experiment on water. This boat will be my home for the next 3-15 months, at least. Trying to live as simple as possible while enjoying the best of Denmark’s nature.

There will without a doubt be a lot of articles about the boat.

Intern as a Brewer

As I’m writing this I’m on my way to Vejle where I’m going to be an intern as a brewer at Bøgedal Brewery. 

I love beer, and I have been wondering how I could stop paying a ton of money for fancy beers I love, and start to drink even fancier beer for less than what a normal beer is costing.

After I watched a danish television show where they are featured, I wrote to them and asked them if they wanted me as an intern. And the said yes!

So the next couple of days I’m going to learn how to brew awesome beer by one of the best and coolest brewers in this country.

Take My FREE Online Course!

60+ people have chosen to do my new 7-day online course on how to get financial independent in 3 years or less with Coast FIRE.

Many of them have written to me with questions and told me they enjoyed the course!

Check it out here

Thanks To My Sponsor!

Thanks to Vilebo.dk for sponsoring not one but four blog posts!

Single Best Advice on How To Get Financial Independent, Answered by 14 FIRE Experts

Don’t take my word for it on how to reach financial independence?

I have asked 12 people who are badass in this community for their best piece of advice. So without further ado. Here are 12 awesome answers!

Jmoney.biz, J. Money

Track your net worth! By far one of the best things I ever did with my money, as it gives you a fantastic snapshot of exactly where you are at any given point in time. And if you’re not one to enjoy budgeting much, it makes for a killer substitution as well! You’ll know fast whether certain areas are improving or not, and perhaps even more importantly you’ll realize what areas are within your control and which aren’t.

BONUS: it only takes 5-10 minutes to update every month!

Earlyretirementextreme.comJacob Lund Fisker.

My best piece of advice is meta-advice. It builds on Paul Wheaton’s Eco-scale and concerns how to to find the best advice depending on how far one is on the journey towards financial independence.

It’s a logarithmic scale with levels describing how much thought one has given to money, freedom, and consumption. For each step up the scale, there are ten times fewer people. If there are one billion at level 1, there are 100 million on level 2, 10 million on level 3, etc. and maybe ten in the world at the top level.

ERE Wheaton Scale 

What’s surprising about the scale is that no matter where one is on the scale, anyone one level higher will always feel inspiring whereas those two levels higher seem too extreme and those beyond three levels look outright crazy. Conversely, it’s always believed that anyone one level behind could easily level up if they just tried a little harder. Those two levels behind the need to pull themselves together and those three or more levels behind are collectively responsible for all the world’s problems.

The Wheaton scale makes it easier to understand how we’re all at different points in our journey towards financial independence. The potential for miscommunication when the gap between levels is too large is worth keeping in mind when talking to others about FIRE.

Pernillewahlgren.dkPernille Wahlgren

My best advice to those who want financial independence!

Create thoughts that support you and your ideas! And make a plan of what you want to achieve and when? Once you find your life goal and direction, it all becomes much easier.

Then create some sub-goals that describe how to get to the goals. Divide into so small sub-goals that you feel that you move closer to your big life goal every day. Also, remember to celebrate the milestones every time you reach a milestone.

Also, find good friends/family/partner who will support you and support you all the way. Without support, everything becomes much more difficult. To create good thoughts, you need mental support when you will lose courage and motivation for periods.

Good luck and as my favorite saying goes:

“Whoever does not know which port to steer towards is no wind favorable”.

 Set your goals and your thoughts so that you can reach them are the most important.

Money MowCarl

“I often see that people find it overwhelming to start on a journey towards financial independence and believe you need to be a financial expert to do so. This is so wrong.

The most important thing is always to just get started. Becoming financially independent is often a question of time. The sooner you start paying off your debt, saving, and investing, the sooner you will reach financial independence. If you think paying off your debt seems overwhelming, start by paying off small extra amounts each month. If you think you cannot save more money, try to find one area where you can save a bit.

If you think investing seems difficult, try buying your first index fund or share. By just getting started you will break down perceived barriers to becoming financially independent – and you will be free sooner than you think.”

Thriving WilliowPeter

One of the most valuable pieces of advice I’ve come to love is making sure you understand your ’Why’. Motivation is key for achieving FI as it takes time to reach the end goal. Having a clear vision, goal, and lifestyle as a motivator can accelerate the progress and pump your way through the tough and uninspiring times. 

Whether it’s living in a self-built Tiny House with your electric bike or living in a mansion with 2 Tesla’s; Whether it’s having 6 days a week with your kids, or private dinners with the top executives around the world every weekday. 

 We’re all different. And that’s great! 

 – Knowing WHY you’re going for FI is a key asset on your FI journey –

Frinans.dkSune

Keep it simple

In a complex world, there is both beauty and strength in keeping things simple. You ensure that you don’t get in over your head and utilizing the Pareto principle is a way to get great results across several endeavors, without having to study every detail. I apply this equally to investing, saving money, and cooking, among many other things. Keeping things simple saves both time and energy, which can then be spent on things you really love doing or just people you love.

Isn’t that what it’s all about?

Daniels PengetipsDaniel Hansen Pedersen

Focus on value.

Too many people spend money without considering what is important for their quality of life and what it takes (in terms of time and energy) to acquire that money in the first place. Reducing spending to focus exclusively on what brings actual value to your life will not only relieve you of unnecessary stress and give you more freedom, it will also be economically beneficial because each dollar spent is two dollars you need to earn. Using the 4%-rule, you need 25 times that (50 dollars for each dollar spent) to finance such expenses from the return of your investments.

Daryl On FireDaryl Davis.

The one piece of advice I could give someone who’s on the path to financial independence is to make sure to optimize your expenses. It’s easy to let lifestyle inflation take control as you earn more money in life and advance in your career but if you just buckle down and stay tight on the budget and not let everything be too extravagant, your financial situation will always be improving.

House Hacking Success PodcastBradley Labrie

The best advice I can give to attain Financial Independence is dramatically increase your savings rate. The single best way to do that is by cutting your housing expense and that is exactly what House Hacking allows you to do! My wife and I are financially independent today at 26 years old directly because of our choice to save 35% of our budget by living for free!

FIRE Myself By 40

The single best advice I can give to people who want to retire early?

Start by auditing your spending and leaving only what is needed. And then work on increasing your earnings, while keeping the same spending budget. For every dollar you spend monthly, you need to save $300 to retire!

We have two financial meetings a month: one to review the state of progress/net worth, and the second one to review the spending in the past month. This allows us to catch lifestyle inflation as early as we see its signs!

Financially Free Journey

The single most important thing when it comes to achieving financial independence is having a clear vision of HOW you are going to do it. So many people make the fatal mistake of vaguely saying “I want to be rich” or “I want to be financially independent” without any plan on how they will do it. The truth is, you don’t have to make 6 figures+ a year to become financially independent. You simply need to understand and outline a few simple things:

1. WHY do I want to achieve financial independence? It is critical to have a clear vision of your long term goals that motivate you.

2. Understand and diagnosis your current spending patterns. This is important to understand what triggers you to impulse spend

3. Create a SMART action plan with your finances

4. Tackle and eliminate debt

5. Understand and calculate what your financially free number is. How much money do you need?

Money Hacking Mama

To reach financial independence I’d recommend figuring out what your FI number is and then track your progress by tracking your net worth. Tracking your progress will help keep you motivated in the long run.

Mr and Mrs Dink

Financial Independence is about long term commitment and consistency. It is not easy or a decision to be made on a whim. Whether it is just you or you and a partner, everyone involved has to be committed.  It takes planning, thought, and full dedication. But, this shouldn’t scare you away. It is attainable. The biggest factor in success is living below your means. The more money you have to consistently commit to this, the fast and larger gains you will achieve. Live intentionally and focus on what you enjoy and what is just extra. Cut excess, stay consistent and the rest will fall into place. 

Money and FreedomBeile Grünbaum

Those who bought the DJIA in 1929 waited 29 years to break even. To avoid that scenario, you have to understand the real value of equity. This is ‘value investing’. I recommend investing in individual businesses with a true understanding of what is under the hood of each company. Index investing is like going shopping and buying one of each item – no matter what the price. When thousands of people shop like that, items become overpriced compared to their true value. You could pay 100 dollars for a bottle of ketchup…Begin carefully selecting the stocks you put in your shopping cart, look at the labels and the price to understand their value. Make intelligent decisions, don’t just follow the crowd.

My Best Advice?

Do my FREE online course, and let me help you by writing to me with your questions.

How To Save Money on Your Phone and Save The World

For a long period, I didn’t have a phone, but as I was about to get a job as a skipper, it would be irresponsible not to have one. It is part of the first aid kit when you are out and about. And not being able to call for help because I didn’t have a phone would never be ok.

After I decided to get a phone, I started to look for a company with a good price and would function in Asia. (That was where I was going as a skipper)

And that was where I found GreenSpeak*.

What Is GreenSpeak?

GreenSpeak is a company founded by three guys who were tired of not making a difference in the world with the job they had. The idea was to start a company that almost everybody had a subscription to and then donate the entire profits to charity.

Equal Pay and Salary Ceiling

Everybody at the company gets 30.000 DKK/month (4.300 $) no matter what position you have in the company. And they never get a raise.

To quote themselves:

“In GreenSpeak we do not have any desire to earn money for ourselves. We have no intention of becoming millionaires. We will rather focus on making a positive change that the world needs. That is why we have equal pay and a salary ceiling. The salary ceiling is the median income of Dane, which we think is fair”.

Democratic Donations

As a customer of GreenSpeak, you get to decide where the money is donated to. They have a long list where you as a customer can vote. And if an organization gets 10 % of the votes, they will get 10 % of the profit.

In 2019 they donated 420.000 DKK (61.000 $).

You can see the entire donation list here. 

Fair Prices and No Bindings

If you don’t use your phone that much you and you only use it in Denmark, you can have the cheapest subscription for 49 DKK (7 $).

The cheapest subscription for calling and data in the EU is 119 DKK (17 $).

And you can cancel it anytime.

You can have a look at their subscriptions here.

My Experience with GreenSpeak

Since I have been shuffling a bit back and forward between Asia and Denmark, I can imagine that I have been a more demanding customer. I have changed my subscription at least three times, but with no hassle at all. I wrote them through the email or their website, and in less than 24 hours (sometimes just hours) they had made my request.

Currently, I have the danish subscription for 79 DKK (11 $) and it suits me well.

I would never write about them if I didn’t use them myself, or if they didn’t make the world a better place.

*I told them that I wanted to write an article about them because I like the way they are running the company so they offered me a free month for the article.