FISH | Financial Independence Seeking Happiness: Investing

THE PAST

Contender 0 Black Swan, Blog, Dividends, Early Retirement, financial freedom, financial independence, Investing 20:12

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<tr><td class="tr-caption" style="text-align: center;">La Romieu Gers France</td></tr>
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THE.PAST: "Well you did not see that coming did ya man!" 
THE.CONTENDER: "We planned enough of it mate!" 
 
This is the first of 3 posts, a look at THE.PAST, the year that was 2012.  
<ol>
<li>THE.CONTENDER Tribe 2012 road to Financial Independence and this year's highlights. </li>
<li>What happened in the financial world and the impact on the THE.CONTENDER investment portfolio.</li>
<li>What we learnt as a family over the year. What did you learn about yourself?</li>
</ol>
 
<div style="text-align: center;">
THE.PAST</div>
<blockquote class="tr_bq">
“Those who do not learn from history are doomed to repeat it” George Santayana </blockquote>
Tribe road to financial Freedom and France in 2012 
<ol>
<li>Mr C takes over the parental duties while Mrs C goes back to work </li>
<li>Our eldest child left creche and started nursery school </li>
<li>Spending was cut dramatically with no impact to our standard of living, as described in <a href="http://getintheringwithme.blogspot.co.uk/2012/09/father-muff-financial-frugality-case.html">Father C a Financial Frugality Case Study of Bringing up Baby</a></li>
<li>Standard of living actually increased as we had one adult at home, which is positive for the children and less stressful for the parents (no more rushing around to pick up kids, having to book days off when they are sick and finding child care solutions)</li>
<li>Both children have grown up immensely this year and are showing real progress - the eldest with reading and writing (just turned 4) and the youngest is a real little person now she is mobile. </li>
<li>Saving exceeded expectations but investments were flat (see below)</li>
<li>Investment knowledge has increased see <a href="http://getintheringwithme.blogspot.co.uk/2012/07/round-5-156s-investment-challenges.html">Investment Challenges</a> and <a href="http://getintheringwithme.blogspot.co.uk/2012/08/risk-versus-reward-round-5-2m-59s.html">Risk Versus Reward </a>and <a href="http://getintheringwithme.blogspot.co.uk/2012/12/financial-independence-planner-stock.html">Financial Independence Planner & Stock Screener</a></li>
<li>The Tribe has improved its knowledge and use of alternative health practices, see <a href="http://getintheringwithme.blogspot.co.uk/2012/09/keeping-muff-healthy-round-6-1m-37s.html">Keeping the Tribe healthy</a> </li>
<li>Wonderful holiday in the south of France researching where to live (photo above from the Gers region of France).</li>
<li>Started this blog! see <a href="http://getintheringwithme.blogspot.co.uk/2012/10/10-blogging-mistakes-muff-styleee.html">10 blogging mistakes - CONTENDER styleee!</a></li>
</ol>
Financial Impact of 2012 
 
First for all those Boggle heads out there our investments came out at a slightly positive 1.5% gain compared to an approximate 7% gain for the US market. 
 
We did exceed our savings plan but took a hit when Mr C left work and hence lost his share options. 
 
Overall this is disappointing but there is always a silver lining! First let's have a look at what happened across the world and why the THE.CONTENDER investment portfolio turned out flat. 
 
By World Region 
 
UK: Austerity is doing its job, shame about the un-realistic growth figures (as usual) along came the double dip recession. Odd thing is that the "austerity" still means that the national debt is increasing year on year...... Nothing to see here, move on, all is well! (quick, appoint another ex Goldman Sachs employee as the Governor of the Bank of England as Merv has stopped printing to cover up the mess that the UK finances are in). 
 
Olympics - good job and pulled the UK out of recession due to the ticket sales alone..... Record haul of medals and Sir Bradley Wiggins won Gold following on from his Tour de France success.  And UK sports personality of the year to boot. GO WIGGO! 
 
Rain - funny that and in the UK of all places - IT HASN'T STOPPED!!! Why invest in wind power we need hydro dams! 
 
Tribe Investments 
<ul>
<li>Stocks generally positive for the year. Income stocks did OK (oil and gas, utilities, telecoms and pharmaceuticals)</li>
<li>Funds generally negative due to exposure to precious metal miners which have had a second poor year of performance in a row compared to the underlying metals which were both positive for the year. </li>
</ul>

THE PAST

La Romieu Gers France THE.PAST: "Well you did not see that coming did ya man!" THE.CONTENDER : "We planned enough of it...

Get Real

Contender 0 Compound Interest, Early Retirement, financial freedom, financial independence, Gold, Investing, Oil, Schiller PE10, Silver, Wheat 14:40

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<tr><td class="tr-caption" style="text-align: center;">Real Stuff (munkee.com)</td></tr>
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 PLAN.AHEAD: "Where have you been CONTENDER we need to get on with your training?" 
 THE.CONTENDER: "THE FUTURE caught our little tribe out with the evil flu but we are back in the game now" 
PLAN.AHEAD: "Right C your NEW training program is called LEARN.SOMETHING.USEFUL" 
THE.CONTENDER: "Is it going to help me defeat THE FUTURE?" 
PLAN.AHEAD: "Now don't get carried away. One step at a time. I have so many things you need to learn. What I need from you is Focus, Listen and Actually Understand, Take your time and let it all sink in" 
THE.CONTENDER: "Yes master tell me tell me I want to know the secrets of the FINANCIAL.INDEPENDENCE.SHIELD and the HAPPINESS.PUNCH (hopefully it is alcoholic ;) 
 
In this post a thesis that the next 30 years are going to be very different than the last 30 years (à la <a href="http://www.peakprosperity.com/" target="_blank">Chris Martinson</a>). In particular considering investing in REAL NECESSITIES instead of passive INDEX investing. 
 
Next post will provide a new stock screening tool that analyses up to 3000 stocks at a time AND an update to CERP - financial planning tool to incorporate an individual stock analysis dashboard as well as a 10x boost to the speed of the tool! 
 
 
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 <td align="LEFT" height="19" style="border-bottom: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000; border-top: 1px solid #000000;" valign="MIDDLE">Stock analysis of debt, dividend sustainability and the dividend discount model for intrinsic value evaluation</td>
 <td align="LEFT" style="border-bottom: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000; border-top: 1px solid #000000;" valign="MIDDLE">Stock screener for company quality and return on capital</td>
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Return of Capital 
<blockquote class="tr_bq">
"It not the return on capital but the return of capital" - Jim Rodgers 
 
 "The first rule of investing has always been don't lose money!" - Warren Buffet</blockquote>
 
For those seeking very early financial independence we need to to grow money faster than inflation and build up a passive income. 
 
In order to do this THE.CONTENDER has looked to first understand what is money and investing (after making a few mistakes) before taking the plunge into the stock market. 
 
Ever since our Tribe started to invest in precious metals in 2005 (a very small amount after talking to an investment banker at a party and being inspired by his outlook on investment) we have been interested in what is money? Why is it valuable? Why does it lose its value over time? 
 
We want our savings to AT LEAST buy comparative goods in the future. $10 for a bag of potatoes today + bank account interest should cost $10 in five years time. 
 
If we are growing our money what is the REAL return after inflation? 
 
10 years ago you could get a loaf of bread for 0.5 monetary units,  now it costs 1.5 monetary units in only 10 years! Supposedly technology has improved so the cost of my loaf of bread should be coming down right??!!!: 
<ol>
<li>Transport is more efficient (we mix truck loads to get max fill / weight ratios with complex computer programs and collaboration across multiple companies)  </li>
<li>Energy is captured and recycled in the baking process  </li>
<li>Agriculture productivity is up - better machines, fertilizers and weather prediction systems....  </li>
<li>Waste is down due to efficient inventory management and improved sales forecasting.  </li>
<li>Competition is rife and profit margins are being reduced  </li>
<li>The USA is going to be energy independent and oil and gas prices are going to plummet!</li>
</ol>
Why Why Why has the cost of my loaf of bread trebled after all of these cost saving improvements? Why is THE.CONTENDER paying so much more for the basics of life compared to 10 years ago. Inflation has been reported as very low.....????

Get Real

Real Stuff (munkee.com) PLAN.AHEAD: "Where have you been CONTENDER we need to get on with your training?" THE.CONTENDER: ...

Early Retirement, Lean and Maslow what do they have in common?

Contender 1 Early Retirement, Education, Ethical, Freedom, frugality, Happiness, health, Investing, Life, Planning, Saving, Toolkit 09:27

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<tr><td class="tr-caption" style="text-align: center;">PERL </td></tr>
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Hello Fight Fans, welcome to Fight Night on channel CONTENDER! Let's get ready to RUMBLE! Introducing in the red corner weighing in at 13st 2lb THE.CONTENDER! In the blue corner weighing in an impressive 16st 9lb is THE FUTURE.  
Tonight's fight is over 12 rounds. The prize is for the UFF (Undisputed Freedom Fight) Belt  
 
THE.CONTENDER has been training for the future for some time. Since he was born actually; just like everyone else. THE.CONTENDERhas been fighting to achieve his goals and desires; funnily enough just like everyone else. THE.CONTENDERhas searched for the key to making them happen; just like everyone else, where is it damn it! 
 
So this post is about THE.CONTENDER's personal thoughts on what this key could look like. In particular could it unlock the secret to an effective Early Retirement and Life Planning approach? THE.CONTENDER's approach is based on three key parts: 1) Maslow's hierarchy of needs, 2) a concept called LEAN and 3) Monthly Planning process. This is what it looks like in THE.CONTENDER's world: 
 
<a href="http://1.bp.blogspot.com/-6QEj-mPPFjc/UGyWvS4_T9I/AAAAAAAAB2k/akM4hlRgZFE/s1600/Maslow.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="" border="0" height="240" src="http://1.bp.blogspot.com/-6QEj-mPPFjc/UGyWvS4_T9I/AAAAAAAAB2k/akM4hlRgZFE/s320/Maslow.jpg" title="Maslow's Pyramid of Needs" width="320"></a>1) MASLOW 
 
Maslow placed the most important aspects of life at the bottom of a PYRAMID. Water, food and shelter at the bottom as they are essential through to self-actualization at the top. 
 
 
 
 
 
 
 
 
<a href="http://2.bp.blogspot.com/--jJqJ6b2XN4/UGyW8K4qa_I/AAAAAAAAB2s/Ul_nhiiRV1g/s1600/Lean+House.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a>2) LEAN 
 
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLL63Q1BECuDcmvj-rw-mp0HDlVXUknkXvfD7A6Pd33q2ULfxuqsaiC37lVcqaf9QXl8r1ccnhA-GU0qrEodxjTVQ5-6kyStrWn6A8mf-1RSJKatD8mwczNCgMJXmKk29OIKkCpGAgyd1c/s1600/Lean+House2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="" border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLL63Q1BECuDcmvj-rw-mp0HDlVXUknkXvfD7A6Pd33q2ULfxuqsaiC37lVcqaf9QXl8r1ccnhA-GU0qrEodxjTVQ5-6kyStrWn6A8mf-1RSJKatD8mwczNCgMJXmKk29OIKkCpGAgyd1c/s320/Lean+House2.jpg" title="House of Lean" width="320"></a></div>
THE.CONTENDERwould like to introduce Tachi Ohno of Toyota. He is considered the father of  <a href="http://en.wikipedia.org/wiki/Lean_manufacturing" target="_blank">LEAN</a> in the manufacturing world. LEAN is all about removing waste (Japanese for waste is "muda") and making the products as close to the point of  delivery as possible (JIT - just in time). 
 
What is interesting is that LEAN principles have been simply represented as a house. You need strong foundations, build the walls and top off with the roof while regular maintenance will keep it in tip top condition. 
 
3) PLANNING (Making it Happen): 
 
Project management has lots of models and different approaches depending on what the project is. It can can be very complex such as building a skyscraper or simple in the case of planning a journey to the Zoo. 
 
Over complication and missing steps, have put THE.CONTENDERin hot water in the past. THE.CONTENDERhad to learn how to mange projects and people effectively to make sure he could not see the wood from the trees.  
 
THE.CONTENDEReventually learnt that planning really is a simple process wits for key repeating steps PLAN - DO - CHECK - ACT. When carrying out these steps a list of checks and skills must be used. Below is a list of the key aspects of planning, leading and execution that THE.CONTENDERhas been rigorously trained on. In THE.CONTENDER's opinion consider all of them, in a robust review process, and you won't go too far wrong: 
<ul>
<li>What is your VISION - what do you want- your end goal - Early Retirement and Happiness?</li>
<li>Do you have a PLAN to get there - this can be on the back of a biz card or a spreadsheet? </li>
<li>Are you keeping everything SIMPLE?</li>
<li>Be prepared to ADAPT your plan and goals, make sure you have regular checks </li>
<li>Do you have the right ATTITUDE - are you really committed to being frugal for early retirement?</li>
<li>Do you see the PROBLEM clearly? is it that you have to pay your debts first or get a new job close to home?</li>
<li>Have you DISCUSSED this with your close family / friends and do you have everyone on board?</li>
<li>Who is in CONTROL - tracking progress and spotting deviations, obstacles and opportunities and getting back on track if you fall behind.</li>
<li>ASSERTIVENESS - get on with it, have a go, back up your convictions</li>
<li>INVOLVE everyone in the decision making progress - THE.CONTENDER and his tribe are moving to France, the reason is that the living standard is higher, decent warm weather and it has good schools for the kids; so THE.CONTENDER turned to the grandparents: "what do you think?"</li>
</ul>
So what if we try combining the life (Maslow) with the continuous Improvement and removal of waste of Lean (Tachi Ohno), with the principles of planning and financial freedom? Here is THE.CONTENDER's interpretation, please read on ;)

Early Retirement, Lean and Maslow what do they have in common?

PERL Hello Fight Fans, welcome to Fight Night on channel CONTENDER! Let's get ready to RUMBLE! Introducing in the red corner weig...

FAC51 - 10 reasons while frugal is cool - why the f*** not!

Contender 0 Debt, Early Retirement, Ethical, Freedom, frugality, Happiness, Investing 14:03

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<tr><td class="tr-caption" style="text-align: center;">The Hacienda Nightclub - one of my old stomping grounds</td><td class="tr-caption" style="text-align: center;"> </td></tr>
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Live frugally - what does this mean? THE.CONTENDER Tribe is frugal but we do not live in a caravan or a tent. We do not eat rice each day for every meal. We do not stay in all the time and play chess. We enjoy socialising even though it costs money. 
 
Frankly THE.CONTENDER struggles with the word frugal - does this not turn you off? Do you associate lots of un-cool negative connotations with the word. Frugal frugal frugal! Why is that? Let's start again. Let's define frugal as being intelligent with our resources. Let's talk about its benefits for investing, generating wealth and enjoying life. 
 
Early retirement is all about enjoying life to the max. Not giving up all of your best years working for an employer who does not give a shit about you, your well being or your family. They don't want to know, don't care (only if it gives them more control over you). They want for full unconditional obedience and commitment to some bogus corporate cause that benefits the few at your expense. 
 
So frugality is portrayed negatively in society - you are not part of the team / you are not a good consumer. Consumption is good for the economy - debt is productive. Get into debt now and reap the benefits (much) later (when it is time to pay inheritance tax - RIP). 
<blockquote>
"With
greater emphasis on working to live, not living to work, we are
creating awareness for simpler solutions, a more creative existence
with healthier, happier longevity, for those brave enough to accept the
challenge." ~Tracey Smith</blockquote>
<a href="http://getintheringwithme.blogspot.co.uk/p/muff-tools-and-check-lists.html" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;" target="_blank"><img alt="" border="0" height="161" src="http://4.bp.blogspot.com/-XS3uu0Cxdzg/UFjZ0dd1PhI/AAAAAAAABxs/R4HUgNcjQso/s200/Muff+Tool+Kit+v6.jpg" title="PLANNING TOOLS AND CHECKLISTS" width="200"></a>The THE.CONTENDER Tribe does not have the latest gadgets but we have gadgets. We are careful with our purchases, always making sure we get the best deal with any discounts. We go on holiday and rent a nice cottage or apartment so we do not have to eat out each night at great expense. We make ice cream cones at home before going to the park. We have a fairly expensive German car and enjoy French Wine. We have friends around and birthday celebrations.....we are NORMAL and are FRUGAL. 
 
Please read on for the 10 reasons why frugality is cool in my book. Would they benefit you? (post comments below :))

FAC51 - 10 reasons while frugal is cool - why the f*** not!

The Hacienda Nightclub - one of my old stomping grounds Live frugally - what does this mean? THE.CONTENDER Tribe is frugal but we do n...

4 Protections for Financial Armageddon?

Contender 0 Black Swan, Critical Thinking, Early Retirement, Financial Armageddon, frugality, Inflation, Investing, Risk 20:51

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Financial Armageddon talk is all across the alternative media. Lax lending that caused the crisis for the banks in 2008 has now been transferred to governments worldwide. Unlimited money printing in the US by the Federal reserve will continue until the economy improves. Commodity prices spiked on this news and will most likely continue to increase in value due to monthly injections of freshly printed money. Boy does it sound like we are screwed. 
 
<div style="text-align: center;">
THE.CONTENDER is very concerned primarily about inflation. Central banks in Europe, US and Japan are printing money for fun while China is stimulating through a colossal infrastructure spend. Historical monetary events (of stealth default through money printing) does not fill THE.CONTENDER with confidence we are on the right path to. We do not seem to learn from past mistakes (a generation passes as does the wisdom) when it comes to excessive debt and sound money. In this post THE.CONTENDER is going to try to summarise  four key protection strategies that
 could work out very well regardless of a Financial Armageddon or severe inflation.</div>
 
<div style="text-align: center;">
For more information see the following books <a href="http://www.amazon.co.uk/When-Money-Dies-Nightmare-Hyper-Inflation/dp/1906964440/ref=sr_1_3?s=books&ie=UTF8&qid=1339230790&sr=1-3" target="_blank">When Money Dies (2010)</a>, <a href="http://www.amazon.co.uk/Paper-Promises-Money-World-Order/dp/0718192141/ref=sr_1_1?s=books&ie=UTF8&qid=1347868634&sr=1-1" target="_blank">Paper Promises (2012)</a> and <a href="http://www.amazon.co.uk/Financial-Armageddon-Protecting-Impending-Catastrophes/dp/141959608X/ref=sr_1_2?s=books&ie=UTF8&qid=1347869641&sr=1-2" target="_blank">Financial Armageddon(2007)</a> my
 previous posts cover how THE.CONTENDER is investing: <a href="http://www.getintheringwithme.blogspot.co.uk/2012/07/round-5-156s-investment-challenges.html" target="_blank">Investment challenges</a> and <a href="http://www.getintheringwithme.blogspot.co.uk/2012/08/risk-versus-reward-round-5-2m-59s.html" target="_blank">Risk Versus Reward</a>.</div>
 
In Europe under capitalised banks are basically lying about their assets value they are insolvent. Several PIIGS governments are being forced to pay ever increasing interest on their government bonds whilst bailing out the banks. The ECB is trying all options to bail out countries against the backdrop of a fractured political landscape. 
 
As the ECB cannot buy government bonds outright, get this, it is giving money to the banks, to buy the bonds, and then buying them back from the banks!!!! - complete fraud in my opinion. Supposedly this will be sterlised (printing no new money), who are they trying to fool - the debt is too large, the supposed assets over valued. The debt and interest cannot be fully paid back. The ECB will take significant paper losses equating to an increase in the money supply in the future. More money created dilutes existing money which is now worth considerably less. To whose benefit? 
 
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Zero interest rates are screwing savers and retirees but fixed rate debt is paying off. I wonder who owns that....... 
 
Most "answers" so far have been to "kick the can down the road" - print money instead of dealing with the issue head on greed has created too much un-payable debt. Why does the west not copy Iceland - they defaulted on their debt, brought criminal charges against the people who abused the system and their countries goo will then started again from a new sustainable base. They are thriving again. The benefit of money printing is for debt holders (creditors). The young are enslaved with excess debt while struggling to find a decent job to pay off. The retired and savers are being stiffed by ultra low interest rates and <a href="http://www.shadowstats.com/alternate_data/inflation-charts" target="_blank">high shadow inflation</a>. 
 
This does not bode well for the generations of the future who have to pay the bill. They also have the possibility of Financial Armageddon to deal with. By this THE.CONTENDER means hyperinflation leading to mass joblessness and massively reduced living standards. 
<blockquote class="tr_bq">
<a href="http://www.amazon.co.uk/Wall-Street-Collectors-Michael-Douglas/dp/B00347A32G/ref=sr_1_1?ie=UTF8&qid=1348083077&sr=8-1" target="_blank">"Greed is good" - Gordon Gecko, Wall Street </a></blockquote>
 
 
Quantitative Easing (buying government debt using printed money) in the US, Europe, and Japan is all about currency debasement to reduce the value of the debt. They are paying the debt back with less valuable currency. The elite has done everything in its power to maintain this status quo. They ensure that they get their debt repayments instead loosing out as the debt is defaulted to allow society to starting on a new sure footing as in the case of Iceland. 
 
The elites are squeezing the productive middle class worker bee families with inflationary policies. The middle class is the productive class. A self perpetuating spiral of job losses due to destroyed demand and lower living standards. If the vampires that sucks the blood from the middle class victims continue who will be left to serve?  
    
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4 Protections for Financial Armageddon?

Financial Armageddon talk is all across the alternative media. Lax lending that caused the crisis for the banks in 2008 has now been t...

Risk Versus Reward

Contender 0 Black Swan, Compound Interest, Critical Thinking, Dividends, Finance, financial independence, Inflation, Investing, Risk 19:56

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<a href="http://3.bp.blogspot.com/-zPAN_dE-K44/URd0cVFyD6I/AAAAAAAACcE/quj2ZUwE_9o/s1600/AngelfishGlovesOff.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="180" src="http://3.bp.blogspot.com/-zPAN_dE-K44/URd0cVFyD6I/AAAAAAAACcE/quj2ZUwE_9o/s200/AngelfishGlovesOff.jpg" width="200"></a> 
Is THE.CONTENDER risking a knockout blow? 
 
 
THE.CONTENDER thought he would write a post on perceived Risk versus Reward when investing. THE.CONTENDER compared the THE.CONTENDER strategy against a couple of very successful savvy bloggers. THE.CONTENDER 's investment plan can be summarised in one simple statement "save as much as possible, in stocks that have a high risk \ reward profile early in life then choose lower risk stocks later". That was the easy part. The next part was devising a strategy to max out the strategy for early financial freedom. The THE.CONTENDER approach is covered in more detail in "<a href="http://getintheringwithme.blogspot.co.uk/2012/07/round-5-156s-investment-challenges.html" target="_blank">Investment Challenges</a>". Here are links to a few articles from the bloggers THE.CONTENDER was talking about earlier: 
 
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 <a href="http://jlcollinsnh.wordpress.com/" target="_blank">jlcollinsnh</a> </div>
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<li><a href="http://jlcollinsnh.wordpress.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/" target="_blank">Stocks part vi portfolio ideas to build and keep your wealth</a> </li>
<li><a href="http://jlcollinsnh.wordpress.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/" target="_blank">How I failed my daughter and a simple path to wealth</a></li>
</ol>
<a href="http://www.mrmoneymustache.com/" target="_blank">Mr Money Mustache</a> 
 
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<li><a href="http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/" target="_blank">How to make money in the stock market</a> </li>
<li><a href="http://www.mrmoneymustache.com/2011/06/07/where-should-i-invest-my-short-term-stash/" target="_blank">Where should I invest my short term stash?</a> </li>
<li><a href="http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/" target="_blank">A Brief History of the ‘Stash: How we Saved from Zero to Retirement in Nine Year</a></li>
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(Other early financial freedom bloggers: <a href="http://gooddaytolive.wordpress.com/" target="_blank">A Good Day to Live</a>, <a href="http://www.bravenewlife.com/" target="_blank">Brave New Life</a> and <a href="http://earlyretirementextreme.com/" target="_blank">Early Retirement Extreme</a>) 
 
<a href="http://getintheringwithme.blogspot.co.uk/p/muff-tools-and-check-lists.html" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;" target="_blank"><img alt="" border="0" height="161" src="http://4.bp.blogspot.com/-XS3uu0Cxdzg/UFjZ0dd1PhI/AAAAAAAABxs/R4HUgNcjQso/s200/Muff+Tool+Kit+v6.jpg" title="PLANNING TOOLS AND CHECKLISTS" width="200"></a>First, both of these guys have made it, are financially free and are still able to save and invest each month. Both guys built significant savings through very hard work and dedication in their employment and investing decisions. Hats off to both of them. This blog highly recommends working through their sites for insights on finance and life. 
 
Next, let's start a comparison of the different strategies:

Risk Versus Reward

Is THE.CONTENDER risking a knockout blow? THE.CONTENDER thought he would write a post on perceived Risk versus Reward when investing...

Early Retirement with a Mortgage?

Contender 2 Early Retirement, Investing, Mortgage, Renting, Toolkit 00:01

<a href="http://1.bp.blogspot.com/-tFaZJF3pa7o/UCP5UyPpBpI/AAAAAAAABn8/hmOzHKZbGKk/s1600/House.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="http://1.bp.blogspot.com/-tFaZJF3pa7o/UCP5UyPpBpI/AAAAAAAABn8/hmOzHKZbGKk/s320/House.jpg" width="320"></a>How do you get to Early Retirement as quickly as possible and buy a property outright? Here in the UK we have an in-built fascination with owning your own 
property. Continental Europeans, on the other hand, tend to either stay at home 
for an extended period of time or rent. THE.CONTENDER has been interested in this 
debate for some time and the impact it would have on our financial 
freedom plans. In order to illustrate the differences I have posted an 
Open Office spreadsheet with some hypothetical scenarios. You can open the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">spreadsheet</a> in the financial section of the toolkit and have a play with the parameters. It contains: 
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<li>An example of when getting a mortgage is beneficial</li>
<li>An example when renting could be a good choice</li>
<li>An example of early retirement </li>
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You can play with the parameters for savings, property cost, rental rates, mortgage, income and inflation expectations for your unique circumstances.

Early Retirement with a Mortgage?

How do you get to Early Retirement as quickly as possible and buy a property outright? Here in the UK we have an in-built fascination with o...

10 Rules of Extreme Saving

Contender 0 Finance, financial independence, Freedom, Investing, Rules, Saving 14:23

Is a 50% saving rate really possible?</h2>
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Living in a high tax and benefit system such as the UK saving 50% of your pay seems extreme. I recently had a conversation on this point with a colleague - he could not believe how we as a family of 4 could still manage to save a 50% of our take home pay. He sat there playing with a very expensive mobile phone. He was working out how to use the latest app to track how much faster he was on his top of the range carbon fiber bike. 
 
As you can already gather THE.CONTENDER was trying to refrain himself for not stating the obvious. One of the most difficult topics I have encountered in professional social and family life is how to approach difficult subjects and significant change: 
<blockquote class="tr_bq">
So and so is really good I could never be as good as..., that is not possible....., my circumstances are special...it is OK for you but it would never work for me..... </blockquote>
So the problem is not the subject per say - surely everyone would like to be financially free. It is the person's initial mindset and perception of sacrifice that goes with it. Where has that perception come from in the first place and is it misplaced? So how do you get your point across \ engage them or should you try and discuss further, at the expense of coming across as pushy.....****!!! 
<h3>

Buy now and retire at 70 or save a lot and be financially free after 10 years? </h3>
So if you need to save 50% or more of your salary to be financially free quickly what is the "sacrifice". Expensive, fun (tropical holidays \ designer suits) are delayed. In budgeting and saving (investing) diligently you will build the capital to be financially free for you to pursue your dreams in a surprising time frame. Could this be true? 
 
<blockquote class="tr_bq">
"Don't forget  you could be knocked down by a bus tomorrow. So don't be silly LIVE FOR TODAY! consume, enjoy your shiny gadgets - forget about financial freedom that is only for the wealthy you are a worker bee in the middle class. If you are a good little worker and make it to 70 you can retire on us" - Anon </blockquote>
 
Advertising, peer pressure, fear and not being part of the crowd are very powerful influences on everyone in society. How is the financial independence blogosphere really going to get its point across? Are people going to give their precious time between distractions like films and the challenges of our hectic daily life to understand the benefits of saving like mad? 
 
My concern is the powerful media message to buy, buy, buy is backed by the best advertising talent and research money. It tells us how to spend our money and is very persuasive to boot. We are exposed to advertising from a very early age when we have very few defenses. Society has been educated to listen and be a good consumer of needs that are actually wants. A lack of inquisitiveness has been instilled in young minds. Subordination to hierarchy is "normal" in the western education system. Young people are at its mercy and do not have the mature skills to critically challenge the status quo.

10 Rules of Extreme Saving

Is a 50% saving rate really possible? Living in a high tax and benefit system such as the UK saving 50% of your pay seems extreme. I...

Welcome to FISH !
You have come here looking for answers. How to get out of debt? How to save and invest? How to retire early and how you want to live in retirement.

Well this is the right place for you as out tribe has been through all of these steps. We no longer work for a corporate employer and have saved enough to retire early. How we did this is shared here on this site for you.

Our little tribe found out these secrets to financial independence in our late 20’s. Since then we have taken early retirement, in our late 30's, in just 7 years. We now live in the South West of France with our two young children.

Along the way I decided to share everything I learnt. My articles and tips on aggressive saving and compound investing are there to help you meet your financial goals fast. I discuss ways to help you decide what you want by building a life plan. This helps to work out how to get where you want to be whilst avoiding the pitfalls along the way.

My expertise was built up working in blue chip corporate jobs, extensive reading and putting it into practice. I have condensed this knowledge into simple strategies to help you meet your goals and not those of the bank or the place you work.

There are free planning tools on this site that help you make a life plan. A plan for your future. The tools calculate how to reach your financial goals in a timeline that suits you. The tools help set out your life goals, make them happen and how to exceed them.

There are tips on how to simplifying your life to remove day to day headaches. These include ways to pay off debt fast buy eliminating wasteful spending habits. How to reduce your monthly bills through choices that actually improve your health and wellbeing. Identifying things you don’t need that sap your time and wallet.

There are little sustainability projects to reduce your dependence on shops and utilities whilst saving money to spend on things you want.

All of these little steps will show you how save 50%+ of your salary so you can meet your goal whatever it is. This huge saving rate can be compounded for very early retirement. I am sure you will find something here for you.

Darren Lee (A.K.A the Contender as in my blog)

FISH | Financial Independence Seeking Happiness