13# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 0 %

Passive Yearly Income (5 % withdrawal with taxes): 16.500 DKK (2500 $)

% Change since last month: 5 %  (26.000 DKK / 3.800 $)

So What The F*** Happen This Month

  • I have stopped leveraging my stocks
  • Competing at my first BJJ competition
  • Simplifying my monthly updates

Quitting My Leverage

The main reason for why I’m quitting my leverage is the following:

Be fearful when others are greedy, and be greedy when others a fearful.

Warren Buffett

But isn’t that market timing Loui?! You might think.

Sort of. The thing is I can feel I start worrying about having 200.000 DKK (32.000 $) of leverage, while I’m not earning any money. I fear going away for my sailing trip, and during that period a recession will hit. Then I need to pay attention to my portfolio while I’m in the middle of paradise. Which is not something I strive for.

The other things is that I have had +30 % ROI this year which is the equivalent of earning + 100.000 DKK ( 18.000 $). So instead of being greedy when things are going great, I start to worry.

Then Nordnet has turned up the rates from 1 % to 2 % for their investments loan. Which is also something I dislike. They could suddenly turn the rate from 2 % to 5 % while the stock market plunge. That would be a risk I was willing to take if I had a job. But not know where I don’t have any steady income.

I’m not completely done with leveraging, but until I have a new job there won’t be any leverage.

BJJ Competition in Dublin

I have found a new love for a sport named Brazilian Jiu Jitsu.

My old coworker Steffen broad me along for class after I got kicked out from the national team in rowing. I never thought that a martial art would be something I would find fun. But I’m madly in love with this new sport.

I love it because it gives your ego a reality check. Whenever you feel that you are getting better, there is one who is better than you, whooping your ass.

In BJJ you don’t kick or punch each other. You try to choke, or “break” an arm or a leg. And because of that we are sparring 100 % at each training session. Which is super fun.

Last weekend I went for my first competition in Dublin. Despite losing my two fights, I thought it was fun, and I have learned a lot.

Monthly Updates – Less is More

I have decided to give the monthly updates a little brush up.

The only “quick takeaways” there will be is the very essential ones.

This Month Savings Rate: Is how big of percentage of my salary I have saved. Since I’m not working at the moment, I’m not able to save anything.

Passive Yearly Income: Is the amount I’m able to take out of my portfolio yearly. I think the 4% rule is quiet conservative. And that’s I why I have chosen to go for a 5 % withdrawal rate. And then I subtract 33 % to taxes. It is a very arbitrary number, since our taxation system in denmark is quiet complex.

The equation would look something like this.

(Total Portfolio Value x 0,05) x 0,66 = Passive Yearly Income

Change Since Last Month: Is how much the portfolio is up or down since last month.

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