Loui Lam, skribent på Wannabe Walden

11# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 0 %

This month leverage: 0 %

Rolling savings rate since February 2016: 49 %

Total value of portfolio: 744.000 DKK (119.000 $)

Years worth of annual expenses: 6.55

% Change since last month: 4,2 % (+ 30.000 DKK / + 4.500 $)

So What The F*** Happen This Month

Working as a sailing instructor at Oure Summer
No salary
Booming stock market
My first sponsor

The Ocean as an Office

For the last week I have been working as a sailing instructor here at Oure schools.

It is a deal they give us when we sign-up for their “Pro-Skipper” course on the folk high school. If we want to they offer us three weeks of work, so that the course become cheaper.

They pay us 5.700 DKK (950 $) for a week. Which is about half the money that I would earn as a building constructor in a week. So money wise it is a pretty shitty deal. And I think I would have a hard time finding some building construction work for a single month.

But is super fun. I don’t see it as work. Everyday we get a new team who has little to no sailor experience. Sailing with a bunch of people who has never been on a boat before is quiet demanding. I can’t relax for 1 minute, because they don’t have a qlue of what they are doing.

I would love to work even more as a sailing instructor, even if it means earning half of what I would as a building constructor. Swapping the cafeteria out with the dock is priceless.

Earning 4.500 $ With No Job

This is the very first time since I was 16 years old (12 years) that I didn’t make any money. And it is also the first time in 5 years that I didn’t buy any stock shares in a month.

I had some pretty serious expenses last month:

Buying an airplane ticket to Sardinia
One month of rent in my apartment in Copenhagen

And that ended up costing me 1.400 $.

Even though I managed to spent 1.400 $, my networth still increased 4.500 $. Which I think is insane. If I hadn’t spent that money, my networth would have increased with almost 6.000 $, while doing nothing for it.

I don’t think it is unusual that people have 10 fold of what I have in their portfolio. And those people would probably have made 50-60.000 $ last month.

But is important to remind yourself about that too shall pass, and bad times will come as well.

The strategy from here is I’m going to buy stock shares when my portfolio is lower than the all time high.

So if my portfolio drops from 119.000 $ to 116.000 $ in month, I will buy for 3.000 $ shares.

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12 Days Sailing Around Denmark

My friend Magnus and I, trying to look cool.

I have just landed back from our “Denmark Around” trip.

It is a trip where we try to sail almost every part of Denmark. So there has been a lot of sailing. There is still a lot of harbors there hasn’t been discovered. But it still feels like that we have seen a great part of our country.

I have found a new love for our country. All of the small islands we have, is freaking awesome. And I would love to make summer sailing raids here in Denmark every year. I even consider moving to one of them. They actually have a society, where everybody knows each other. Back in Copenhagen I don’t even know my neighbor.

The route looked like this:

12 days – 11 harbors

We only had one day where we didn’t sail. Which means that we ended up sailing a bit above 300 nautical miles.

One of the raids in the pacific ocean are we only going to sail 350 nautical miles in two months. Some of the other raids has more. But we are not going to sail as much as we did on this trip.

The harbors we went to:

Ballen – Samsø
Ebeltoft harbor
Anholt harbor
Aarhus harbor
Tunø Harbor
Juelsminde harbor
Middelfart harbor
Fænøsund (Anchoring)
Faaborg harbor
Marstal – Ærø
Skarø
Lundeborg (Night sailing)

Pictures From The Raid

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Why Consuming Less is More Important Than Politics

The other day we had a election for a new government in Denmark.

And I’m really pleased about the result.

It turns out that we get a new socialist government, which I think is good because they are the ones who focus most on the environment.

I voted for a party called Alternativet because they focus the most on the environment. Sadly they didn’t do to well.

Politics is Bullocks

Don’t get me wrong. I feel very privileged living in a society where I have the opportunity to vote in a democratic election. The alternative to a democratic system is often fatal.

But often I find politics hypocritical. Especial when it is about the environment.

Politicians and electors often say/vote something, and still have their airplane ticket to Thailand in their drawer.

And yes – I have three airplane trips planned this year. Which I don’t feel good about. In a couple of weeks I’m going to Italy, and I will go by train if it is possible.

Action > Politics

If you are concerned about the environment, how we act is way more important than what we are voting.

I think that everybody should vote, but voting doesn’t make a person an environmentalist. Action does.

If you however hate immigrants and want them out of the country, you can’t just start to throw people out because you feel like it. Then you have to vote. (But please don’t vote for people who hate immigrants).

But it is different about the environment.

$1 Spent = C02 Emissions

I don’t care how people spent their money. But if we spent less than we earn, we would be more environmental than if we would have spent all of our money.

I could go out and spent almost 3 times as many money as I’m currently doing. But I’m choosing not to in order to be environmental and financial independent.

Fortunately there is a direct correlation between being environmental and trying to cut back on our spending.

The picture below is from a presentation I made for the school I’m currently at.

10# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 55 %

This month leverage: 0 %

Rolling savings rate since February 2016: 53 %

Total value of portfolio: 714.000 DKK (107.500 $)

Years worth of annual expenses: 4.94

% Change since last month: -0,9 % (- 7.000 DKK / – 1000 $)

So What The F*** Happen This Month

Last salary just checked in
Extending my sailor school
(Almost) No work until September 2020

Last Paycheck

It is now three month since I got fired from my job. Which means that I’m official on my mini retirement.

With no income, these monthly updates might end up being a bit different. I won’t have no additional money to save and invest. But I do have a cash reserve I can use.

What Can I Do With No Money?

I will focus on two things in this period where I don’t make any additional money.

I’m going to throw money in my portfolio whenever it is lower than the previous month. So if my portfolio is 107.5000 $ and it drops to 106.000 $, I will buy for 1.500 $ in order to get the value up to the previous high.

Second I can focus on my spending. If I spend less than what I currently do, I can bring my “Years Worth of Annual Expense” down. Which has been fluctuating a bit too much lately.

Nothing But Sailing

The next 16 months I’m going to do nothing but sailing.

I have just extended my stay here at the school because I got an offer I couldn’t refuse. That means I will go here all the way up to the point where I go to Indonesia and the Philippines to sail.

I do have to do some work. But it is three weeks here at the school as a sailing instructor for people who have never sailed before. And I really don’t see that as work. More like a better way for me to improve as a skipper.

I will go to these following places during this mini retirement:

Sicily / Italy – 7 days
Split / Croatia – 9 days
Indonesia – 4 months
Philippines – 6 months

Blog Posts This Month

Guest Post at Projecthandmade.dk

Go Small. Go Far. Go Now.

Guest Post at Projecthandmade.dk

Jane is the owner of the blog ProjectHandmade.dk

She asked me if I wanted to participate in an (danish) interview on her blog.

Here is the result:

Click here to go to the guest post

Go Small. Go Far. Go Now.

After I started to sail a lot more than I use to. I have started to read some books about sailing and voyaging.

Back when I was a kid, I thought that “One day I’m going to have a huge boat, because that is a lot nicer than a small boat.”

When I read about people who has been sailing for many years, I think the story is way more appealing if they have done it in a small boat.

They said to themselves:

Go Small. Go Far. Go Now.
Larry Pardey, Cruising in Seraffyn

I have heard several stories of people saving up for the big boat for their retirement. And then they suddenly die.

Go Go Go and FIRE

I interact with several people in the FIRE community. And there is not many people who goes small, far and now in that community.

The 4 % rule is so conservative if you ask me.

By saving up 25 times your annual spending we are:

Going Big / Saving to much money or having to big of a budget
Not going anywhere / not taking up mini retirements
Waiting too long to “retire”

Going Big

There is three ways that we can attack our financial goals.

Spending less
Earn more
How much we want to have saved

I’m the biggest fan of focusing on 1 & 3.

We can go pretty extreme and do as Jacob Lund Fisker.

But only spending 7.000 $/year and seem pretty extreme for many people.

But instead of focusing to much on hitting that magical number of having 25 times our annual spending (aka. the 4 % rule).

We could scale that down to something more “risky”. And take a mini retirement, and maybe work one day a week while we are having blast.

Not Going Anywhere

Even if we are responsible with our spending and saves 50 % of our salary. We are more likely to not go anywhere.

While we can’t travel to happiness it doesn’t make to much sense of staying at a job we hate in order to hit a certain number. By saying that our lives is going to be significant better when are able to “retire”, is the exact same things as believing that our new Iphone is going to make a great jump in our wellbeing.

It’s nice to have a lot of money, but you know, you don’t want to keep it around forever. I prefer buying things. Otherwise, it’s a little like saving sex for your old age.
Warren Buffett

Don’t get me wrong. Don’t go out and buy a lot of stupid stuff.

But I dream about sailing around the world. And I’m not going to wait till I finally can check of that “25 times my annual spending” tick box.

Waiting Too Long

If you start at age 22 to save and invest 50 % of your income, you are still going to be 35 or more years before you hit that 25 your annual spending mark.

If you are total happy about your current situation. Then just stay in the grind.

But if we dislike it. Then settle for less than 25 times your annual spending and find another job, start to study again or start a business.

Just try to ask yourself the following things.

How can I go smaller?
How can I go further?
How can I go tomorrow?

9# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 59 %

This month leverage: 0 %

Rolling savings rate since February 2016: 55 %

Total value of portfolio: 721.000 DKK (108.500 $)

Years worth of annual expenses: 6.07

% Change since last month: 3,7 % (+ 26.000 DKK / + 3900 $)

So What The F*** Happen This Month

Savings rate is back to something that seems normal
Years worth of annual expense is up again
Rolling savings rate has gone up 4%

Two Months of Mini Retirement

I’m two months into my mini retirement.

The first month went by with having a good time in Copenhagen.

Having a good time equals:

Seeing friends and family
Drinking (too much) beers
Renovating my dad’s (and my boat)
Doing some brazilian jiu jitsu

One Month of Folk High School

The first month of being at this new school where I would like to improve my sailing skills is gone.

And boy, there is a lot of impressions by being here.

I have already improved my sailing a lot by being here. Everything I know about sailing is something my dad has taught me. My dad is an awesome teacher, but I enjoy learning stuff from other people too. (I have already learned my dad something)

I do feel a bit old though. A lot of the people on this school is between 18-21 years. Which I feared would be an issue for me. Since I’m 28. Everybody is super nice, but I do get tired of playing beer pong third weekend in a row.

Even though I would like to sail more than we do at the moment. I would encourage everyone to try a folk high school (especially for foreigners). It is an awesome opportunity to gain a new skills fast, in a super cosy way where you meet many awesome people.

I pay 6000 DKK/month (900 $) for being here. Which is cheaper than if I just had my regular life back in Copenhagen. I have become a better sailor, awesome and organic food is cooked for us three times a day. And we do not have to do the dishes. It is a huge luxury to be here.

Blog Posts This Month

7 Benefits of Not Having a Mobile

School Project Video on FIRE

School Project Video On FIRE

For a month ago I said yes to participate in two young boys school project about financial independence.

I said yes, because I know how important the youth is.

In every single rowing club I know, the future success of the clubs determines on how big (and good) of a youth department they have.

All of the rowing clubs who neglect the young ones, is slowly digging their own graves. As time past by, there will only be grumpy old men back at the club. And that is not to appealing to anyone (sorry old men).

FIRE and Kids

Sometimes I feel frustrated about that I never got introduced to FIRE as kid. I’m quite sure that I would have been mature enough to see the benefits of that lifestyle, and probably be financial independent at my current age.

That’s why I would like to give my knowledge about FIRE to as many kids as I can.

They should know from very early age that we are able to shape the life we want, and not what society expect from us.

And that the road to happiness is not filled with mindless consuming.

I told the two boys that I was willing to come a make a presentation about FIRE on their school if they wanted to.

If you read this as a kid, and think it would be fun for your school to hear about FIRE. I’m willing to come and tell about it. For free.

Feel free to contact me on: Loui@wannabewalden.com

The Video

They told me they got an A for the this project.

Unfortunately it is in danish with no subtitles.

7 Benefits of Not Having a Mobile

I haven’t had a mobile for the last month. It happen by an “accident”.

For a month ago I got fired from my job. And when had to have a phone for my work, I decided to ditch my private one.

The last day I had to deliver the phone back.

So there I was. Without a phone.

A bit shocked about being fired from my job, I didn’t feel like going to town to shop for a new phone. I just wanted to take a some days off, relax a bit, and then shop for new phone.

A couple of days into my “I-have-no-phone-at-the-moment” life, I started to enjoy feeling unconnected.

From days, to weeks to now a month without a phone, I have no desire of rushing into buying a new phone anytime soon.

Here is the list of things I enjoy the most of not having a phone.

SPOILER ALERT!

There is one thing I hate by not having a phone.

1) Being More Present

This might be a obvious one.

But by not having a phone, and being with somebody. I force myself to interact with the person on a deeper level than what I normal would. If this person starts to bore me, it is the easiest thing to grab my phone, and start scrolling.

I have started to notice that some of my friends can take up their phone and start scrolling for a couple of minutes in the middle of our conversation. Which is so ignoring!

The most scariest thing is that I’m 100 % certain that I have done that way too often myself.

2) Less Stress

I could feel a vibrating item in my pocket for weeks after I got rid of my phone. But I had no vibrating item in my pocket.

It was like 5 % of my unconscious mind was alert about my phone.

That “alertness” is gone after a month of not having a phone.

3) Reaching Out More

When was the last time you asked someone:

“Excuse me, what time is it??”

The only wrist watch I have had for years, has been a heart rate watch I used for my rowing training. And I kept breaking them. So the last time I broke the watch, I didn’t feel like turning it in for a new one. Just like the mobile, days without a watch turned into weeks, and then months. And now I just like not having a wrist watch.

That means I constantly ask people what the time is.

And that act alone, has made me talk with 10+ people I wouldn’t have.

4) No Stress About Battery

The feeling of plugging an almost dead phone into the charger is so satisfying.

But why is it satisfying?

Because we have stressed about that we need to find a charger soon, because the world is coming to an end if I don’t have my precious phone.

5) JOMO

We all know the term FOMO.

Fear

Missing

Out

I started to enjoy a new one.

Joy of missing out.

There is direct correlation of me being surprised about my friends telling me stuff they have been doing. And me not having a phone.

I spent less than 10 minutes a week now on instagram, which would be my main source of my friends “gossip”.

When I don’t get this gossip, and just don’t know what my friends are up to. Except if I meet with them. Which is an awesome feeling.

6) Doing Nothing

I have completely forgot the feeling about being bored.

The last time I remember being bored was back when I was a kid.

Sitting down, maybe waiting for the train and doing absolutely nothing.

Is super nice!

7) Saves Me Money

No need to think about cell phone deals.

Or worry about breaking the screen.

My Main Problem of Not Having a Phone

As the avid reader knows. I will be spending the next 3 months on a school where I’m going to sail, and just have a good time.

The “Just-have-a-good-time” part often involves beer.

And the only payment the bar accepts is through an app.

Not having a phone, means that I currently have no apps. So I can’t pay for my beers! Which is a pain in the ass!

8# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 0 %

This month leverage: 0 %

Rolling savings rate since February 2016: 51 %

Total value of portfolio: 695.000 DKK (104.300 $)

Years worth of annual expenses: 4.87

% Change since last month: 3,2 %

So What The F*** Happen This Month

I manage to save absolutely no money this month.

Which is catastrophic to some of the parameters I use.

I didn’t manage to save anything because I have signed up for a sailing folk high school. Where I’m going to stay for the next 3 months.

Yes – I did manage to go from 102.600 $ to 104.300 $ without doing anything. This can still amaze me.

But!

My rolling savings rate from February 2016 to this date went from:

58 % to 51 %.

YIKES! It dropped 7 % because I had one month without saving.

And my years worth of annual expenses dropped from:

6.42 to 4.87.

YIKES YIKES YIKES!

Last month I would be able to live almost 7 years from now. And this month I’m only able to live 5 years from this date. (Including my leverage)

BECAUSE OF ONE MONTH!

While it does bother me a. I probably won’t have expenses like this in the future. So it doesn’t make to much sense to include a month like this in my calculations. But I will. It gives me some motivation to save more.

The Reason Why I’m Deleveraging

As the avid reader might knows. I’m not going one but two mini retirements. Said in another way. In 2019 and 2020 I’m going to take 13 months off from work.

First I’m going to a folk high school to sail and have a good time.

And then I’m going to Indonesia and the Philippines to sail again.

This means that I won’t make any money for a couple of months.

Worrying about my leverage while I’m cruising on some of the most exotic oceans in the world, is one of the last things I want to do. If I had the guts, it could probably make sense in the long run (20+ years from now) to leverage more now. But I’m prioritizing peace of mind higher than my portfolio at this stage.

I’m going to keep the leverage I have now. But I will be investing normal, and this means my stock allocation will go up, while my leverage will stay at 200.000 DKK.