7# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 56 %

This month leverage: 0 %

Rolling savings rate since February 2016: 58 %

Total value of portfolio: 673.000 DKK (102.600 $)

Years worth of annual expenses: 6.42

% Change since last month: 3,2 % 

So What The F*** Happen This Month

Big things happen this month.

Both good and bad.

I need to reevaluate on how I’m going to write about it.

But I will write about it, that is for sure!

So stay tuned for some juicy blog posts the coming period.

Not Leveraging

One of the (well maybe two) things that happen to me this month made me stop leveraging. Not that I will ever do it in the nearest future. But as things are right now, I will not be doing it.

What I’m going to do is deleverage a little bit. Not that I’m going to pay off my debts. But I will keep the amount on 200.000 DKK (30.000 $) that I have now. And then invest regular in my stocks. By doing that. My stock allocation should increase a bit each month (if the market stays >0%) which means that my 200.000 DKK will be smaller compared to my stock allocation.

I will tell you why I’m doing that in later blog post.

The First 100.000 $ is a Bitch

Believe it or not.

That is a quote from the famous Charlie Munger. He said it in the book Charlie Munger: The Complete investor.

This month I managed to cross that line.

Yes – I still have some debt. But the debt that I have should be working for me, and not against. I’m still young, and that kind of debt is peanuts against to what I can earn in the nearest future.

And statistics says that if I just leave for a long enough time, it will benefit me.

The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.

Charlie Munger

CPH FIRE MEETUP

Is going down this week.

I can feel as the date come closer, the more nervous/excited I get.

But it is a feeling I’m completely familiar with, because of my rowing.

If you want to participate read the details in the last 6# My Monthly Financial Independence Update.

Blog Posts This Month

My Wife Doesn’t Like FIRE?! Answered by Jacob Lund Fisker

I Will Work Till I Die

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It is not going so well at this stage.

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I Will Work Till I Die

There is a lot of talk in the danish media at the moment about retirement age.

It seems like nobody wants to work till they are 75 years old. (Not even the politicians who makes the rules, and they retire way younger than the rest of the population)

I don’t blame them. Neither do I.

I want work for the rest my life.

“Oh my god?! What did Loui just say?! I thought he wanted to quit as soon as possible?!”

Furious reader

I took part in a documentary where a clever fella named Svend Brinkmann commented on the whole concept of trying to “retire” as early as possible.

He said:

“I don’t think that any people is trying to live a life completely unbounded from everything”

Svend Brinkmann

And I think he has a good point.

I’m an extrovert person. I love being around people. And I love being in exciting projects. The most important thing is that they cannot drain me.

My work needs to be fulfilling, fun and making a difference. And I would like it to be that all the way till the day I die.

Rethinking Work

Why does work has to drain? The vast majority of people I know think work is exhausting, and they would rather be free.

Why can’t we find work that gives our life purpose but without the stress, and lack of energy when we arrive home.

I think one of the major reason of why work is draining us, because we do it to much. Elite sportsmen doesn’t train 8 hours everyday because it doesn’t make sense. If you had to workout for 8 hours a day, the intensity and focus would be so low, that you would have way better results by training 3-4 hours/day. Then we can throw in some interval work, while we are super sharp on the technique.

And I can’t see why work should be any different from sports.

Imagine if you knew that you only had to work from 8 AM to 11 AM.

Would you work differently than you are today?

I think most of us would.

Rethinking Retirement

If you think about it.

Isn’t super weird that we work all of life, and then suddenly we don’t?

If we tell ourself that our work is so meaningful for our existence. That we need to do it for +40 years, why don’t we do till the day that we die?

As I said earlier. I can’t never imagine not being committed to something in my life.

I can still see myself as an 80 year old, fooling around in a rowing club (or something similar). Making sure that everything is ok.

How We Should Work

Let’s just take up work that makes us excited.

We don’t have to sit at desk for for 40 hours/week in order to make a change. In fact, every single one of us is replaceable. We don’t like to think it that way, but it is the truth.

So just take up work that sounds like fun. Do it for a couple of days each week. Or do it a couple of hours each day. And then leave the rest of the day with doing things you love to.

I look at the people who bring out food on their bike and admire their work. It looks like so much fun.

I really do think that we can have a work that we love. But I also think that doing the same thing year in and year out, for the vast majority of the day, can be killer to anything that we like.

In sports it is very acknowledged that in order to become better we need rest. And it needs to be good. The same goes for our working life. And there is no rest in working from 8-4, picking up kids, try not to argue with your spouse and then crash on the couch in front of the tv in order to “rest”, so that we can be ready for the next day.

Rest should be the majority of the time, not the 1 hour crash in front of the tv. In sports it is even normal to have a “rest season” after the olympics. I have never heard of someone who would take every 4th year off from work, just to have a nice time.

Let’s do that instead.

My Wife Doesn’t Like FIRE?! Answered by Jacob Lund Fisker

I love when people is hitting the head on the nail.

And I think that Jacob Lund Fisker really did that the other day in the FIREdanmark facebook group. And is worth sharing with the entire world.

FIREdanmark is a facebook group started by the danish blog Frinans.

That forum is a group of danish people who all have that in common that we would like to live our life to fullest. And claim our freedom from the rat race as fast as possible.

Jacob Lund Fisker is often answering questions in there, but this answer is really worth a blog post for it self.

People is asking a ton of different question, and the other day this question got posted in the group:

My wife doesn’t like the FIRE philosophy. How do I get her onboard with this idea??

And this is here Jacob Lund Fisker came with this awesome answer:

In general FIRE is about changing the mindset about being poor, which the middle class is borned and raised with. Where you income equals what you will be spending. Where social status is equal with how much money you make, and then connects consuming with happiness. Said in a different way, the middle class connects money with limitations. That’s why people is getting panic attacks/emotional whenever you talk about cutting back on spending, because they don’t see what things you are going to get by doing so.

It is a transition that can take many years before you resonate with it, because “You don’t know what you don’t know” when you only have the mindset of limitations. Especially when you are limited in thinking of freedom with what you can afford to buy and what you not can afford.

An example. I once walked by a car dealer and pointed out that I could buy the entire row of cars in cash. Most consumers buy their car on installment, so it was something that made an impression. That I had created an opportunity to buy a car in cash. A car bought with cash is more specific than the account number. Only few can imagine what a million is without having to translate it into something tangible such as 3-4 cars or 15 years without worrying about rent.

The example of the car works because it builds a bridge between poverty mentality and wealth mentality because one still connects a large savings into something that is consumption.

If you have come so far, then the next thing is to “install” a wealth mentality, where it is no longer about which plastic dimes or pleasures one can buy. But much larger “things” such as freedom from stress, freedom to stay where you want, freedom to work or leave, … a really good night’s sleep, time to make healthy food, etc. It is a whole different category than a larger TV or a house with three locks. It is a “mindset” where money is no longer a limitation. Instead, one’s limitation is what one simply has time and personal abilities to. And so it goes far beyond on what one can buy in a store, unless you are absolutely unimaginative. (Which most people are basically … but it can be changed …)

An example. Make one of the spreadsheets with lots of graphs showing how much your consumption is, how much you have saved, and how large your passive income is projected many months into the future from month to month. Highlight the dates when you can stop stressing over bills, downtime, start your own business, go down to zero time, travel constantly or just when you want (without waiting for vacation), stay at a beach hotel in Spain, volunteer in your union, buy houses in cash, change “career” to football judge or motorcycle mechanic, or take care of your children yourself instead of outsourcing. Do what you want with your life now.

Try to create it with different savings rates.

When you have talked enthusiastically about it for a few months … Then do the same for your partner with their numbers and some scenarios: if they save 10%, 50%, …

It is much more convincing to have a specific date in the head (their head) and a dream of traveling around the world or becoming the first Dan in Go … If they take it with poverty mentality, then they hear the limitations of how much / little they must shop, etc. instead of the enormous opportunities that open up in after April 2026.

The only way to “convert” people is simply “show, don’t tell” because otherwise you talk past each other, because of the difference in mentality. And do it quietly.

The biggest challenge is that people who are educated as consumers is not used to dream big enough. That’s what you can try to help them learn.

But remember that they have to dream their own dreams … not just take over.

Thank you Jacob Lund Fisker for such an AWESOME answer.

6# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 59 %

This month leverage: 55 %

Rolling savings rate since February 2016: 56 %

Total value of portfolio: 652.000 DKK (99.600 $)

Years worth of annual expenses: 6.4

% Change since last month: 10,5 % 

So What The F*** Happen This Month

The stock market has been REALLY gentle to me.

Allmost to gentle.

It worries me a bit. It is kind of to good to be true.

I made more money with my investments, than I did at my job.

And a 10,5 % change since last month is just insane.

Less Leverage

Because the market has taken such a huge jump. I have not invested that much this month. In order to stick to my 10 % cash allocation. The other months I have been leveraging 100 % no matter what the market did. This means if had saved 10.000 DKK I would borrow another 10.000 DKK. But that does not mean that I will invest all of 20.000 DKK. If the market had gone no where, I would invest 18.000 DKK and keep 2000 DKK in my cash cushion in order to be in 90 % equities, and 10 % cash.

This month I had to throw more than 10 % of what I have saved in order to keep my 10 % cash allocation. I managed to save about 13.000 DKK, and I needed to keep about half of that it in order to hit my cash allocation. I just think it would be absurd to keep 6.500 DKK in cash, but still be investing 19.500 DKK with the majority of the invested money being leverage.

I have only leveraged 100 % with the money that I did transfer to my investment account. Which was about 7.500 DKK. And that’s why my leverage is less than 100 % this month.

If I can keep my leverage at about 40 % or less, my rate of the loan will then only be about 1 %. If I’m between 40-60 % leveraged, I will pay 2 % in annual fees. And if I move above 60 % I will pay 7 %.

OUCH! I have no intention to do that.

My January Challenge

I tried to start 2019 with a little challenge.

A challenge where I tried to spend less than 1000 $ dollars for a month. And I failed. But what ended up as an average month (with about 60 % savings rate). Could have been quiet catastrophic I hadn’t had a laser focus on how I spent my money.

CPH FIRE MEETUP

I have finally got everything in order for the FIRE Meetup in Copenhagen.

It will take place in my rowing club (Roforeningen KVIK) the 8/3/2019 at 6 PM. Everybody is welcome so feel free to join.

The concept is that there will be a pizza waiting for you at 6 PM for the price of 100 DKK. I know, a pizza doesn’t cost 100 DKK, but the remaining money will be donated to The Ocean Cleanup. It was a demand from my rowing club that I needed to raise some money for charity, if I should borrow the club for free.

So MobilePay me 100 DKK to 25400183 if you would like to attend the meetup.

There will be some keynote people at the event.

Jacob Lund Fisker from earlyretirementextreme.com is going to be there. He is quite famous in this community. He is visiting some family in Denmark, and I convinced him to swing by our little meetup.

Then we have Pernille Wahlgren. She is not a typical FIRE lady. But she has made herself financial independent in relative young age, by investing in stocks. She is also getting quiet famous at the moment. With her “live & think freely” concept. Which I like. She runs the page PernilleWahlgren.Dk

And we will also have Sanne Fehmerling Kristiansen. Who runs the site passivindkomst.nu. Her concept is trying to make her whole family financial independent through passive investments.

I know all of these people from documentary made about FIRE from Danmarks Radio. It was called “Stå Af Hamsterhjulet” (Quit the Rat Race). And is definitely worth to watch.

Blog Posts This Month

Challenge: Live Below 1000 $

1# Update: Sub 1000 $

2# Update: Sub 1000 $

3# and Final Update: Sub 1000 $

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I’m still trying to see if I can make any money out of this blog.

It is not going so well at this stage.

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Take a look at the page HERE and see all of the awesome benefits you will get!

3# and Final Update: Sub 1000 $

As everything else will pass.

So has January.

Read about the challenge here.

And read about the 1# here

And the 2# update here.

And it is time to reveal if I have accomplished my challenge to live below 1000 $ for one month.

And you know what?

I failed.

I didn’t accomplish to spent less than 1000 $. I managed to spent WAY more than a 1000 $ to be honest.

My Spending

I’m sad that I didn’t manage to complete the challenge. But what I spent my money on was worth it.

My mom turned 60 years old this month. And because of that we made her a surprise party lasting almost a whole day. We started out with surprising her at home, where we maked a potluck brunch, I broad super delicious (but expensive) bread from a baker called Meyers. From my mom’s apartment, we all biked to my rowing club where we had champagne in the sauna, and went swimming in the harbour. My mom and her boyfriend has this tradition where they invite each other out on a traditional danish lunch (smørrebrød). So this time the whole family went out for lunch. From there we visited my cousins old workplace (she is a pastry chef). Bought some cake, and went home for cake coffee and rum. All in all, it was a LOVELY day. I wish my 60 year old birthday will be similar to hers.

But I managed to spent a pretty sum of money on that event.

  • 170 DKK (28 $) on bread for the brunch.
  • 430 DKK (70 $) on the lunch
  • 600 DKK (90 $) on a gift for my mom

1200 DKK (200 $) in total.

I was a lot of money. But it didn’t bother me to spent it. It was a really great day. And it is not to often I spoil my dear mom. She deserved every single spending on that day.

Father+Son Weekend

One day my dad invited me to go Statens Museum for Kunst. I can’t remember the name of the artist. But she had a made three pears out of bricks.

We walked out of there super disappointed. And agreed to visit Fjordenhus in Vejle a couple of weeks afterwards. It is a super awesome building designed Olaf Eliasson. A danish-icelandic artist. Magnificent building. He is bending the laws of how a brick house should look like.

My dad picked me up at the European Indoor Championships. Where I was a part of the four person relay team, and we ended up with a silver medal. I really love that rowing club. It is like a second family to me.

Directly from podium and out in the car we drove away. I didn’t have time to change, because we had to reach a ferry from Odden to Århus. And it was the very last one. So no time to miss it.

We had a sleepover at my highly loved aunt in Brabrand. Where I always get spoiled. And so did my dad all along that weekend. And I couldn’t stand the thought just to get spoiled all weekend, without spoiling them. Sunday we went out for a lunch, at a lovely place in the woods. That ended up costing me 835 DKK (130 $) for us three.

But the money was well spent. The food was lovely (Stjerneskud). And the vibes were even better.

Summing It Up

  • 1200 DKK (200 $) at my moms birthday
  • 835 DKK (130$) Father/Son weekend
  • 767 DKK (120$) Food and eating out
  • 128 DKK (20$) Cinema with my ex
  • 50 DKK (8 $) New sheet for my bed (Woke up with a huge hole in it)

In total: 2852 DKK (450 $)

And if we look at the last update. I had 640 DKK (100 $) left for this month.

640 DKK – 2852 DKK = – 2212 DKK (380 $)

So I managed to spent 1380 $ this month.

Which is like 40 % above my target of 1000 $.

What ended up like an average month for me, could have been a really bad one (according to my savings rate) if I have been more sluggish about my spending. I have learned that I can live 20 days on way less that I normal would without sacrificing my happiness. But I would have loved to start this new year spending less, because then I would be closer to have 20 times annual spending saved up.

But if we subtract my mom’s birthday and the weekend with my dad, I would be quiet close to the 1000 $ goal. I do not think it will be a difficult goal for me in the future.

I will proceed to try to live on way less than I do now.

2# Update: Sub 1000 $

22 days has now passed.

Read about the challenge here.

And read about the 1# update here.

And things are going good.

Sort of.

I did manage to spent a big chunk of my “fuck up money”. And boy, was it a fuck up.

Have you ever heard of couchsurfing.com?

It is a site where you borrow peoples couch when you are travelling. Or you can lend your own couch to a person who needs a place to stay while traveling. For free.

Awesome page!

I thought it was a super good idea to sign up on that page. By doing so I could have some fun company in my apartment, and helping out travelling people. And maybe I could couchsurf when I’m going to travel, to save some money, and meet some local people.

Here comes my fuck up. 

There was different ways on how you can validate yourself.

One of them was doing it by credit card.

Smart, I thought.

But after a couple of hours a receipt arrived in my mail box, congratulated me on my lifetime of verification for 420 DKK (60 $).

God, I felt stupid.

Spending almost a month worth of food on personal verification. No no, can’t do. Not for me.

So I have asked for a refund. 

My Spending

I don’t feel any change in my mood. Even when I spent less than last month. My theory of spending less, and still being happy is proving to be right at this moment.

I managed to spent 475 DKK ( 70 $) since my last update.

Which is quiet alot.

175 DKK (30 $) were spend on food.

And 300 DKK (50 $) were spent on “Fuck ups”

My Spending On Food

Nothing has changed much according to what I’m eating at home.

It is still beans, rice, onions, cheddar, salsa and brocolli.

And I still think it is freaking delicious. I have a mexican thing at the moment.

What I have bought is this:

  • Beans
  • Onions
  • Cheddar
  • Salsa
  • Brocolli
  • Wine

I bought two bottle of wines for me and some friends. To me a happiness equation look something like this:

Friends + (some) bottle of wine(s) = Happiness

It is one of my favourite things to do.

My Spending On Fuck Ups

I went out to eat two times since last update.

One time was with many of my old rowing friends from the national team. We visited one of the guys from the team.

He lives at a dorm where there are +400 students living. And they have a kitchen cooking for them, morning, lunch and dinner.

It is so insanely luxurious, I can’t imagine how painful it must be to move from there.

But we are able to buy a dinner there for 50 DKK (8 $). We had spaghetti carbonara which might be one of my favourite dishes. It is really hard to fuck up pasta, cream and cheese. That combi is god like.

The second time I was eating out, was with a near friend from my rowing club, we really enjoy eating a kebab after a hard rowing session.

We have this awesome place called Durum Bar. It is the best freaking kebab in whole Copenhagen. Big shout out to them!

I eat there way too often.

That dinner ended costing me 50 DKK (8 $) as well.

I also bought a gadget worth 200 DKK ( 35 $ ). Unfortunately I can’t tell you what the gadget is. Sorry for that.

All in all.

Eating out.

2 x 50 DKK (8 $) = 100 (16 $)

Stupid gadget

200 DKK (50 $)

What I Have Left

In the first update I managed to spent 148 DKK (25 $).

And in this update I managed to spent 452 DKK (85 $)

That leaves us with a total of:

452 DKK + 148 DKK = 560 DKK (90 $)

My food and fuck up budget was set to 1200 DKK (200 $)

So that leaves me with 640 DKK (100 $) left for this month

1 $ Sponsor?

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You will get 50 words + a link for your site. At the bottom of a blog post.

Besides that!

I will make a site called “Sponsors” where your link will be FOREVER!

Wow. That is a huge offer.

Imagine if this blog got really popular, and you were the very first one to become a sponsor. That would be pretty awesome!

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1# Update: Sub 1000 $

12 days is passed by in my January 2019 challenge.

Read about the challenge here if you don’t know what I’m talking about.

To sum it up quick.

I made a budget for food on: 600 DKK (100 $)

And a “Fuck up” budget for: 600 DKK (100 $)

I think “Fuck up” budget is going to be spent on Take-away food, beers or something like that. (Yes, shame on me) Maybe some transportation like the bus or train.

That is what I normal would spend my money on.

My Spending

I managed to spend 148 DKK (20 $) on food for the first 12 days.

The primary food I have been buying is:

  • Beans
  • Onions
  • Broccoli
  • Chocolate
  • Salsa
  • Cheddar
  • Tortillas

I bought a 5 kg bag of rice last month for 50 DKK (8 $), which I haven’t finished yet.

We have a family dinner on my father’s side of the family the first sunday every month. And my sister asked If I could pick up some coriander, ginger and some spices, which ended up quite expensive. But she is my sister, and of course I will help her out.

A Typical (Spending) Day

At 6 – 8 AM I get up and get ready for work.

I don’t always eat breakfast. I do that for two reasons.

  1. It makes my day more simple
  2. It can be healthy not to eat

I will be biking for work in order to save money, to get some excercise and because I love to bike.

Every friday we have free breakfast at the work. And from Monday – Thursday we can buy a luxury breakfast buffet at the canteen for 10 DKK (1,5 $). Which I do sometimes.

At 11 – 12 AM you will find me eating a even more prosperous lunch with my co-workers. For 20 DKK (3 $) we can eat all want. And it is a true feast. I will at least go for two big portions. Sometimes even three. I have been working this place for allmost a year now. And they still laugh of the amounts I can eat in one sitting.

At 4 – 7 PM i will be training. For a decade know I have been training almost everyday. I have done that because I have a dream about going to the Olympics in rowing. At this very moment that dream doesn’t look that bright. But that doesn’t change the fact that I love training. There will close to no cost at my training session. When I finish a training I will eat something like a couple of bananas or something like that.

At 7-8 PM I will have my dinner around that time. For the last three weeks I have been eating the same dish every night. It is fried rice, with beans, broccoli, onion and chili, topped off with cheddar cheese and a tomato salsa. I think it cost me around 15 DKK (2 $) for a dish like that. It taste freaking good and I can’t imagine getting tired off it in the nearest future.

Daily Spending Summed Up

Morning: 0 DKK (0 $) (I allmost never buy that breakfast in the canteen)

Lunch: 20 DKK (3 $)

Dinner 15 DKK (2 $)

Transportation: 0 DKK (0 $) (I do ride with the bus and train sometimes, but I will be biking for 95 % of the time.

In total: 35 DKK (5 $)

I kind of cheat with the budget from the challenge. The food budget is only outside of my work. The money I spent on food in the canteen is subtracted when I get my salary. So I never count that spending. Not even in my savings rate. But believe. I eat my share in that canteen. With the amount of food that I’m eating it would be stupid not to pay 20 DKK (3 $) for that kind and amounts of food.

If you believe that you need to bring your own food for work in order to reach FIRE. That is just bullshit.

Yes, it would not make any sense if you only ate a carrot for lunch, and pay 20 DKK (3 $) for it. But eating +1000 calories and pay that kind of money for it is a no brainer.

What I Have Left

I managed to spent 148 DKK, so the equation will look like this:

600 DKK – 148 DKK = 452 DKK (85 $) for food.

And I didn’t manage to “fuck up” this month (yet). So I still have 600 DKK (100 $) to fuck up with.

That seems promising.

Challenge: Live below 1000 $

2018 is over.

So the other day I made room for a new chapter in my personal finance Excel Book. The name of the chapter was 2019.

Just for fun I would throw some numbers around. I don’t know why. But it kind of surprise me that if could cut back my spending even further. I would be quiet close to have enough money a year from now.

In 2018 I have been spending around 10.000 DKK/month (1500 $). And if I subtract my student loan payment, and some work related expenses. My spending is around 8.000 DKK/month (1200 $).

I have then decided to try live a month for less than 6.500 DKK (1000$). I know that Jakob Lund Fisker from earlyretirementextreme.com, has a yearly budget on 7.000 $/year. And being active on various forums. I hear about people who has Monthly budgets below 3000 DKK (500 $). I think it is very inspiring to hear people living on very low budgets.

Starting a Fresh New Year

So I thought to myself. Why not just try to start 2019 with a monthly spending significant lower than my previous years. If im able to only spend 6000 DKK (950 $), I can then subtract all of my job related expenses and my monthly student loan payments. Which means I’m more likely to have expenses for 4500-5000 DKK (800-900 $). And that would be around 30-40 % less than my previous years. If I don’t feel like spending that little, I can just spend more the next month. My theory is that no matter how little I spend, it will not affect how happy I’m. So why not just try to spend way less than normal. At least just for a month.

With expenses around 4500-5000 DKK/month (800-900 $), my annual expenses will be something like 50-60.000 DKK (9.000-10.000 $). And if we multiply that with 20, I will need around 1-1.200.000 DKK (150.000-180.000 $). And with some leverage I think I can hit that number in 2019.

Even with no rate of return I should be able to go from 600.000 DKK (90.000 $) (my current statement) to 1.000.000 (150.000 $) in 2019. With 200.000 DKK (30.000 $) from my own pocket, and 200.000 DKK (200.000 $) leverage.

Budget For January

My payments this month (January 2019) looks like this:

Rent: 2350 DKK (400 $)

A-kasse (Salary insurance): 1344 DKK (200 $)

SOS (Children charity): 235 DKK (40 $)

Student loan: 1005 DKK (180 $)

Internet: 219 DKK (40 $)

Food: 600 DKK (100 $)

Laundry (half-year payment): 400 DKK (80 $)

Fuck up money: 600 DKK (100 $)

Total: 6155 DKK (950$) 

This is what I “budget” to spend for January 2019. The biggest difference will be how much I spent on food. I’m sort of frugal according to how I spent my money on food. But it is definitely a place where I can save money.

I have read about how Jakob Lund Fisker is shopping at exotic grocery centers. To buy big bags of rice, beans and onions as the core of his food. And I have checked the prices at my local shop called “Asia Bazar”. If I buy 5 kg of rice, 3 kg of beans and a large sack of onions, I will approximately spent around 160-180 DKK (30 $) and that food will last for 10 days, ish. (Yes I eat a lot).

I will make a weekly update, on how things are going.

And feel free to join me, and let me know how you are doing as well.

Back To the Roots

In Denmark we have this luxury of free education, and being paid while doing so. I think that a student who is above 18 years and is living on their own, gets around 5500 DKK/month (800 $).

What I’m trying to say here is that there is a lot of young people who spent less than 1000 $ a month.

I kind of did that myself when I studied as a building constructor. But I did manage to get 100.000 DKK (15.000 $) in student loans. It was first at the very end of that education that I had a totally mindshift about money and freedom. It happen when I read mrmoneymustache.com for the first time.

1 $ Traffic of Your Choice?

I’m came up with this fun experiment. From this day on I’m going to sell sponsors for every blog post I make.

The first sponsor is going to cost 1 $. The next will cost 2 $, the third 3 $ and so on.

You will get a headline, 50 words and a link for your site at the bottom of a blog post.

I think the average page views a day is around 50, and on the best days they are around 500.

If you would like the very first spot for 1 $ let me know by writing me on:

Loui@wannabewalden.com

5# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 55 %

This month leverage: 140 %

Rolling savings rate since February 2016: 55 %

Total value of portfolio: 590.000 DKK (90.000 $)

Years worth of annual expenses: 5.8

% Change since last month: 0 % 

So What The F*** Happen This Month

The stock market has not been friendly this december month (if you are selling). I’m still trying to fund 20 times my annual expenses, and this mean that a market drop is quiet lucrative for me. When the market is down, I’m able to buy more shares with the same amount of money.

Since last month I have gone absolutely nowhere. Except for having more leverage. As the avid reader might see, this is the first time ever I have leveraged more than 100 %. I have done that because I would like to end up the same place as last month. And not have a decline in my portfolio. This is a strategy slightly inspired by Dollar-Value-Average. I could write an entire blog post about that strategy, so you will get a brief one now.

Dollar Value Average

Dollar-Value-Average is where we decide what amount our portfolio is going to rise + interest, and then we need to hit that target every month. For simplicity, let’s just say that we would like to raise our portfolio with 100 $/month. Then the following months would look like this:

  1. = 100 $
  2. = 200 $
  3. = 300 $
  4. .. And so on

If the market goes up, and we have 120 $ at the start of the second month, we will only invest 80 $, because we would like to hit that target of 200 $. If the market is down at the start of the 3rd month, and we only have 180 $, we will then invest 120 $ to reach our 300 $ target.

That strategy is called Dollar-Value-Average. It is a simple method, of buying more when the market is down, and buying less when the market goes up.

And that is what I have done this month. I have leveraged more, in order to stay at the same level as last month.

2018 and my savings rate

This is how my year looked like according to my savings rate:

  • January = 30 %
  • February = 65 %
  • March = 48 %
  • April = 55 %
  • May = 53 %
  • June = 75 %
  • July = 73 %
  • September = 19%
  • October = 51 %
  • November = 67 %
  • December = 55 %
  • Average = 59 %

I had a higher savings rate in 2017 where I managed to save 62 %. So I’m not completely satisfied with “only” saving 59 % this year. In 2016 I didn’t have student loan payments, that could be the answer to a slightly lower savings rate.

My goal for 2019 will be to save above 66 %. It will be tough, but manageable.

Blog Post This Month

Here are the following post I managed to write this month:

Fire and Water

I Have a Dream!

Quit The Rate Race

A Wuss-Entrepreneur

How Did You Do?

Did you come one step closer to become financial independent? Let me hear about it in the comments!

A Wuss-Entrepreneur

Work and Love

Instead of buying all sort of things, we can instead make a personal fund of a sustainable stock index fund. That can make room for taking up work that we love. Work that makes us thrive, and not just to survive. 

There is many people who take up work which they love. They are often called “entrepreneurs”. But in this modern culture is often found as “risky” because we need to make a living (3.000 $ ish) while doing so.

How horrible wouldn’t it be if you and your family should live a deprived life on 2500 $/month 

Concerned “Non-FIRE” Citizen

If we can take that money and make sure our basic expenses is covered. We can take up work that doesn’t even pay us. Imagine if everybody started worked with their heart instead of their wallet? Don’t you think we would have way better products. If we had endless time to come up with ideas, with no deadline, and didn’t have to worry about pleassing some investors?

Say Hello to The Wuss-Entrepreneur

A Wuss-Entrepreneur is a person who would like to have something on their own. Educating, creating and offers products they think the world needs, but made with love. 

A Wuss-Entrepreneur doesn’t want to risk the roof, the food, and the wellbeing of their families. Or their own future. 

They don’t want to spend 80 hours/week for their newborn company. 

What they do want is a work scheduele on their own terms.

A wage that match what they desire. This can turn out to be less than what your old boss thinks is appropriate.

Maybe they want to create something that changes the world, but are not seen as something worth spending money on.

Or it can be the opposite. Maybe it is something you just love doing. Like art. But the Wuss-Entrepreneur don’t feel like doing it full-time, or risking anything doing it. 

FIRE and Being A Wuss-Entrepreneur

FIRE and being a Wuss-Entrepreneur goes hand in hand, like early mornings and coffee.

It is the best combi ever. And here is why. 

It Will Increase our Portfolio Value

The beauty about FIRE is that everything is really simplified. As a rule of thump, if we can hit 25 times our annual spending, we should be set for life. 

So for every 1000 $/year we can make being a Wuss-Entrepreneur. We will increase our portfolio hypothetic with 25.000 $. Because thats the amount we would like to have in our portfolio, if we were going to withdraw it. 

Imagine if we can make 10.000 $/year being a part time wuss-entrepreneur. That means our portfolio is going to be 250.000 $ bigger than what our current statement says. 

AWESOME!

We Can Start as Many Businesses We Want

There is no reason to just hold on to one business. We can start as many as we like. And work whenever we want.

Or we can learn a new skill every year or two.

According to an old American public speaker named Earl Nightingale, if we can study for 30 minutes a day we can master any topic in this world.

By reading 30 minutes for six months we can become legimate experts.

By reading 30 minutes for 3 years we can become in the top of our field.

By reading 30 minutes for 5 years we can become a national authority.

By reading 30 minutes for 7 years we can become on the best people in this world.

Let’s do the math. If we are able to reach fire in an age of 40 years old. We still have aproxemaitely 40 years left of our lifes.

By reading 30 minutes a day, we can still in an age of 40 become one of the best people in world on 5 different topics.

And no need to worry if you think being one of the best in world sounds to big and scary. Just studying and practicing something for a year, would make us able to make at least 1000 $/month on almost anything.

Imagine this. If you started a whole new chapter of your life, tomorrow. Within 20 hours of reading you will know the basics of that new topic, and from there you can start to teach other people (and make money) about this new topic. In six months from that point you will be a freaking expert on that topic, and would probably be able to make living doing so.

Work Whenever We Like

I have never understood why everybody is taking vacation in the summer here ind Denmark. To go for an exotic trip away from Denmark. I know people have kids, and that’s why they have vacation in the summer. But I can’t really find a good reason to leave the country.

We don’t have the same climate as Sweden and Norway, where they have way more snow than us. And Denmark looks pretty much like a pancake. That means the winters is often just dark, with “snow” there seems more like an slush-ice. So we can’t enjoy a ski trip, like our fellow scandinavian friends.

As a mason I love working in the summer. There is nothing better making a tile roof in the summer. And eating lunch with a coworker on the roof, looking across Copenhagen. It is the most awesome feeling ever.

I could see myself working every summer, and staying in Denmark when the weather is (often) super awesome. And then leaving the country in the dark winter.

Or we could just work a couple of days each week. Imagine working part time at job. Only showing up Wednesday-Friday, being able to catch a beer with co-workers on fridays. And skip the monday everybody is dreading?

What If We All Felt Like This Guy?