19# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 0 %

Yearly Passive Income (5 % withdrawal with taxes): 14.300 DKK (1900 $)

% change since last month: – 15 %

Back In Denmark (On Welfare)

Mini retirements in South East Asia and a pandemic doesn’t go hand in hand.

We were working on the boat, doing some repairs on it in Carmen – Philippines. There were supposed to come 8 new guests on board, and everybody did arrive in the Philippines. But 6 of them decided to go home immediately.

So we were me and my first maid, and two guests. We told them that we couldn’t promise them anything. Because we didn’t know how the situation would unfold.

We were optimistic in the beginning, but as days went by. Everything started slowly to close down. It got harder and harder to get a lift into town. And one day they have decided that no one with white skin could leave the harbor. All of the marine traffic was banned as well, so we couldn’t even leave the harbor by boat if we wanted to.

So we were stuck in there. The bar was still open, so I didn’t miss anything. We could still order nice affordable food, and whatever we had a desire to drink was there. So no panic.

About 10 days in this pandemic we decided that it might be smart to go home. We had no idea if the whole country we shut down, and what would that mean to our situation.

We booked not one, but two flights that got canceled.

I wasn’t until the ministry of foreign affairs sent a flight to the Philippines that we could come home.

So right now I have spent more than 2000 $ on flights that got canceled, which I’m going to try to get refunded.

When Shit Hits the Fan

This situation is probably as bad as it can get from my point of view. Which is not even so bad. 

I’m back here in Denmark. My flat is still rented out. So I don’t have any spending on an apartment. I will receive about 18.000 DKK/month (2650 $) on welfare (Dagpenge) before taxes, which will net in about 12.000 DKK/month (1800 $).

I can save and invest 50 % of that since my spending only will be determined by my eating and transport.

Even in the shittiest situation, I can be, I’m still able to continue my FIRE journey.

Second Month With Double Digit Drop

This is the second month with a double-digit drop.

Last month I was down 10 %, and this month I’m down 15 %.

I have kind of looked forward to a bear market to see how I would react to one. Because I have always thought that I didn’t really care. Actually, I think I would enjoy a bear market, so I could buy more stocks on sale.

Which is right.

I couldn’t care less that the market is down. The only thing that frustrates me, is that I don’t have more cash laying around to buy a good chunk of cheap shares.

But with the welfare, I should be able to buy some.

Kakeibo Experiment

The other day I read “Your Money or Your Life” for the second time (It is a really good book).

And they suggest that you track every cent you spent for at least three months in a row. By doing that you should be able to reduce your spending by 20 % or more.

If we do so, we are then able to look at the previous month’s spending. And ask our self if we got the joy out of that spending or not.

If not, we can minimize our spending, and be able to invest more to claim our freedom.

And that’s where I stumbled into Kakeibo. A simple and old Japanese way of tracking your spending. The next blogpost will be about my Kakeibo experiment in the previous month.

I will continue for three months, and see if I’m able to reduce my spending.

Are You On Top Of Your Finances?

If your answer is no, write me mail and tell me your story.

I answer every mail I get.

Feel free to write if you just want to say hello too.

You can reach me on the following mail:

Loui@Wannabewalden.com

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