FISH | Financial Independence Seeking Happiness: frugality

Spendaholics

Contender 0 Early Retirement, financial independence, frugality, Habits, Saving, spending 17:03

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<tr><td class="tr-caption" style="text-align: center;">A good investment?</td></tr>
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<b>The Tribe is currently going through a period of EXTREME spending</b>. <br />
<br />
First up this post is not about idiotic hedonistic spending. We have not been to Bali (ever), we do not have silly fuel guzling, flash cars, we do what we can ourselves and do not rely on expensive services. It is about:<br />
<ul>
<li>What have we spent money on</li>
<li>A case study on good spending</li>
<li>Have a play with the free FISH timeline planner </li>
</ul>
<h2>
 
<br /><br /><br />THE.FuTuRe: "I did not think they would last long in financial independence - the spending bug has finally got them"</h2>
Let's have a look at what we have spent (invested) money on and why we consider it useful in the pursuit of FISH.<br />
<ol>
<li>We have installed a really cool eco heating system for new house: </li>
<ol>
<li>25kw wood gassification boiler with a 1000 litre water buffer tank</li>
<li>300 litre solar water tank with heat exchange between the two tanks - new unpressurised design.</li>
<li>3 chimneys </li>
<li>two 4kW wood  burning stoves</li>
<li>So much insulation we do not know what to do with it all other than double it up</li>
<li><b>Very low running cost  - minimal electricity (pumps and controllers), Purchase of wood (currently free as we are using the wood we have available around the house (~15 dead trees).</b></li>
<b>
</b><ol><b>
</b>
<li><b>Electricity - break even</b></li>
<b>
</b>
<li><b>Wood cost of £500 per year </b></li>
<b>
</b>

</ol>
</ol>
<li> Grow some of our own food and medicine</li>
<ol>
<li> Tools and machines: vegetation mulcher (to fertilise and protect the fruit trees), chain saw and safety equipment (we have lots of 
dead trees), axes, shovels, well pump (this will halve our water bill as we can water the garden and vegetable patch with free water)</li>
<li><b>Aim is to grow
 our own Fruit and Vegetables in the Summer \ Autumn. Initial aim is to 
save 30% of our grocery shop for 6 months of the year (we currently 
spend £321 on food and consumables per month so saving 30%*321*6 = ~£580
 per year</b></li>
<li><b>Have free wood for several years </b></li>
<li><b>Free water for the garden</b></li>
</ol>
<li> Our second hand 1.5 Diesel Renault Clio consumes HALF of the fuel of my 1.6l petrol WV GOLF</li>
<ol>
<li>Re-negotiated the insurance and BOTH cares are less than our payments on ONE CAR in the UK</li>
<li>No yearly road tax in France (was £180 in the UK)</li>
<li>Bi Annual Car Check (Control Technique) in France versus Yearly in the UK<b> </b></li>
<li><b>Saving 180(tax), 50(insurance) £700(Fuel), MOT £30  =£960 - Car Cost £5800 time to payback = 5800/960 = ~ 6 years</b></li>
</ol>
</ol>
<b> </b><br />
<ol>
<ol></ol>
</ol>
<b>Estimated total reduction in living costs per year £580 (food),  £240 (water), £700 (Heating), £960 (Car Costs) = £2,480 savings per year</b><br />
<blockquote class="tr_bq">
<b>THE.FuTuRE - </b>"What a waste of time CoNTeNDeR all that work - why bother. New technologies are making everything CHEAPER - keep with the system."<br />
<b>CoNTeNDeR - </b>"It's an investment - the value of your investments may fall, blah blah blah. At least it is in my control not yours!"</blockquote>
<h3>
How much would we need to earn each year to pay for the savings?</h3>
Consider this £2,480 having to be earned after tax. Tax at the lower rate of 20% and Social charges at 8%, you would need to earn £3,174<br />
<br />
Assuming a 5% return on investment you would need £3,174/.05 = ~ £63,500 working for you that needs to provide a return that increases at least in line with inflation.<br />
<h3>
How much have spent / invested to get the savings?</h3>
Compare that to the investments we made above to reach the same amount of "return", Car £5,800, Heating £19,000, Gardening Equipment £1,500, Insulation and shutters, £7,000 = £33,300 & we get some completely inflation proof protection with regards solar hot water, home grown food, well water and wood.<br />
<h2>
Does it make sense to spend savings in this way?</h2>
<ul>
<li>£63,000 need to be invested to pay for living costs of £2,480 (£3,174 before tax)</li>
<li>£33,300 need to be spent to reduce living costs by £2,480 </li>
</ul>
<b><i>It
 seems that this is a wise "investment" to spend the money to reduce our living costs. We will have less capital invested but can save more per month. Will compound interest work for or against us?</i></b><br />
<br />
Consider the following case: if you had 100,000 in savings, your earned income is 25,000 per year (post tax) and you are saving 30% of your income (living costs = 25,000 - 30% = 17,500)<br />
<br />
<u>Case 1 - You don't spend the money</u><br />
<br />
100,000 <b>invested returns 5,000 per year</b> at 5%<br />
You can <b>save </b>30% of a salary of 25,000 = <b>7,500 per year</b><br />
Living <b>cost 17,500 per year </b><br />
<br />
<a href="https://www.blogger.com/blogger.g?blogID=5841097566669291663" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a>TOTAL SAVINGS = 12,500 per year   STARTING CAPITAL = 100,000<br />
<br />
<u>Case 2 - You spend the money</u><br />
<br />
100,000 - 33,300 = 66,700 <b>invested returns 3,335 per year</b> at 5%<br />
You can <b>save </b>30% of a salary of 25,000 = 7,500 + the savings of 2,480 = <b>9,980 per year</b><br />
Living <b>cost </b>17,500 - 2,480 (reduction due to savings) = <b>15,020 per year</b><br />
<br />
<a href="https://www.blogger.com/blogger.g?blogID=5841097566669291663" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a>TOTAL SAVING =  13,315 per year    STARTING CAPITAL 66,700<br />
<ul></ul>
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In this case (*see parameters) this is what your investment capital <u>may</u> look like in 25 years time. It takes around <u><b>19  years for the "purchases" to reach the same capital balance if you just carried on saving</b></u> </div>
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*Income increases at 3% per year (25K starting point)</div>
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*Inflation increases at 4% per year</div>
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*Investments return <u>on average</u> 7% per year </div>
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*Living costs start at 17.5K (15K reduced living cost)</div>
<blockquote class="tr_bq">
<div style="text-align: left;">
<b>THE.FuTuRe</b>: "19 years! to catch up and that is assuming just 7% return on invetment - aren't you just betting on your Eco system which will probably be obsolete before long! - Burn the hydrocarbons baby and smell the smoke of progress you tree hugging chimp."</div>
<div style="text-align: left;">
<b>CoNTeNDeR - </b>"Sure I should be one of the sheeple, go with the flow, listen to the mainstream media, <strike>indoctorate</strike> educate the kids to be good consumers, build reliance instead of resillience, be part of the team instead of an odball fanatic hiding in a eco hideout scared to go out"</div>
<div style="text-align: left;">
<b>MR.REaLiST</b> - "Sounds good to me <b>CoNTeNDeR</b> plan ahead a bit, why sit still and wait.</div>
<div style="text-align: left;">
<b>MR.PeSSiMiST</b> - "What are you doing - ruining the lives of your kids - molly coddling them from the real world. </div>
<div style="text-align: left;">
<b>MR.OPTiMiST</b> - "Everything is awesome, chill, relax and have some fun man, thinking is so outdated. Everthing is Now Now Now and to your doorstep if you like!"  </div>
</blockquote>
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<b>What can we learn from this case study?</b></div>
<ol style="text-align: left;">
<li><b>Spending is bad for very early financial independence (especially unproductive spending)</b></li>
<li><b>A large starting point (inheritance) makes a massive difference</b></li>
<li><b>Productive spending will pay off in the LONG term - if you need to move the investment in the house may be "lost"</b></li>
</ol>
</div>
<div style="text-align: center;">
<b>You need to SAVE and BUILD capital to benefit from the power of COMPOUND INTEREST instead of SPENDING to reduce your costs for very early retirement.</b></div>
<div style="text-align: center;">
<br /></div>
<div style="text-align: center;">
<b>You should look at ways to reduce costs through lifestyle choices. For example, choosing not to buy something or some service and live in a cheaper place. </b></div>
<br />
<h2>
Why did the TRiBe do it then?</h2>
Like any decision there are unique reasons and circumstances behind any decision. Arbitruary if you forego all spending it (saving and no spending) can have different outcomes. Some can be negative such as not moving (costs) for a higher paying job, failing to look after your health.<br />
<br />
In the Tribe's case the bucks have <b>really </b>been invested for the <b>long term </b>in our new life. This investment reduces our dependence on VARIBLE or DECLINING CASH FLOW, to some degree PROTECTS CAPITAL and increases our resilience \ self sustainability:<br />
<ol>
<li>We get to live in a mortgage-freehouse</li>
<li>The house had <u>no heating and minimal insulation</u> so we chose an energy efficient solution. </li>
<li>My old car had already done 150,000 miles - a new car was needed for reliability and backup. </li>
<li>We have a degree of self sufficiency (land, water and fruit trees)</li>
<li>Our net worth is not <b>as exposed</b> to market crashes as we now have a wider asset allocation.</li>
</ol>
<h2>
Why this case doesn't make sense for Financial Independence Seeking</h2>
<ol>
<li>House prices are at historical highs versus earnings. </li>
<li>Renting can often be cheaper than buying and paying for a mortgage </li>
<li>Buying a property generally means SPENDING your investment pot to INVEST in lower living costs - Think this through carefully.</li>
<li>Owing a house can reduce your flexibility to move for a better job.</li>
<li>A house is a liability. You have maintenance costs and property taxes. </li>
<li>A larger capital investment pot can compound very fast in a bull market providing more capital to re-deploy in housing etc later. </li>
<li>Cheaper heating systems (inital installation costs) are available. Personal choices such as live in only a couple of heated rooms in the winter (which is fairly short in the SW of France) would only require one 12kW stove.</li>
<li>Live close to your work to avoid the car costs</li>
</ol>
Why not have a play with the free financial projection spreadsheet on this site? Play with the numbers for your personal situation and dream of <i>your</i> future.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://sites.google.com/site/lifeplanltd/home/TimeLine_Financial.xls?attredirects=0&d=1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="Click to load excel file" border="0" height="307" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgseOx2p561RjMAeqvEbYHvzlIcnyiAjrYMfzu4Oks76D6wVV0lbRuz2Dth6CEvetKa3iWOCajvVgbOfvqh2yqZtmeSHby6sRBPUoU5BH-khjO_qJljjKK5vyhZjUeWpjhbw88IybiOmwDx/s1600/25yrFI.JPG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="https://sites.google.com/site/lifeplanltd/home/TimeLine_Financial.xls?attredirects=0&d=1" target="_blank">Financial Timeline Planner (click to download excel file)</a></td></tr>
</tbody></table>
<div style="text-align: left;">
<blockquote class="tr_bq">
<i>Perhaps if we all conserve resources better we would actually have more as a society. We would leave more for the future and instead of just burning fuel (also known as money) the savings can be used to build a better world to live in. <b> </b></i><br />
<br />
<b>THE.FuTuRe</b><i> - "Wake up you muppet - that is <b>NOT </b>how we have been told the world works, don't think just do it" </i><br />
<b>THE.CoNTeNDeR</b><i> - "We will just do it... our way</i>"</blockquote>
</div>
<br />
Peace, prosperity and happiness<br />
<br />
<b>CoNTeNDeR</b><br />
<br />
<b>Welcome New Readers!</b> Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a><b> </b>to find out more about <b>THE.TriBe</b> and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank"><u>all posts list</u></a>, Please feel free to play with the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">planning tools and checklists</a>. If you liked this post can you please spare a few seconds to share it?

Spendaholics

A good investment? The Tribe is currently going through a period of EXTREME spending . First up this post is not about idiotic hedon...

Spendthrift Or Save Bore

Contender 2 Budget, Dividends, frugality, Habits, Happiness 20:47

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<tr><td class="tr-caption" style="text-align: center;">Corfe Castle - A bad investment?</td></tr>
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<h2>
Bad advice on Spending, Saving and Investing</h2>
I have been reading a few posts recently going along the lines:<br />
<br />
1. If you have a dividend stock portfolio you need 3 years in cash to cover the ups and downs - why?<br />
2. The classic: draw down 4% a year of your portfolio and you will be fine - always?<br />
3. Index funds have always done the job (Warren Buffet has just said so) - aren't they fairly new in the scheme of things?<br />
4. Live in a trailer on the street next to your job (or work for Google and live in the car park) and save $$$$$$ - sounds cosy!<br />
5. Invest in non ethical ventures such as ATM machines, pay day loans etc. - "If I don't provide the service someone else will" - what is the real cost?<br />
<br />
Ideas and advice are easy to give out (yours included) however this practise can be either misplaced irresponsible or downright dangerous. Getting something that REALLY WORKS requires the individual to take control and responsibility for their decisions. Mindlessly following can be leading oneself straight off the cliff.<br />
<br />
<i>What if you follow the passive investing approach in a country with a collapsing financial system? <br />What if your money is tied up and you cant get hold of it when you really need it? <br />What if it is the wrong time to sell the investment? Have you REALLY diversified?</i><br />
<br />
Just because certain investments have worked out well over the last 60 years why should they continue to do so? Yes they have opened door to early retirement to more people than ever but is this just an aberration? I believe it is worthwhile asking these difficult questions in order not to mislead FI seekers.<br />
<br />
For instance just look at the financial repression we are under. Interest rates at 1% anyone? Who would have thought that and how much would you need in an annuity to live off at that rate of return? No wonder a record number of people are having to postpone retirement.<br />
<br />
To be sure of early retirement what is really needed is a rock solid diversification - more saved at a lower return. secondly it needs to provide you a lot more income than you spend so you can continue to save.*<br />
<h2>
Spend and Save </h2>
Today lets have a look at what really drives peoples ability to be FI - their self control over spending, saving, personal expectations and desires.. <br />
<br />
In particular what HAS to be spent and what NEEDS to be spent to be <u>HAPPY</u>. Why save everything to be FI and be miserable - absolutely pointless - have a re-think of your goals.<br />
<br />
Likewise if you have a desire to spend, spend, spend to be happy :) this is not the blog for you check out the Hiltons and Beckhams.<br />
<br />
Saving has been portrayed as boring, missing out, repressive.<br />
<br />
Saving is generally hard to do in large amounts - consider the challenge to save $100 per month compared to how easy it is to spend $1000 on a credit card.<br />
<br />
It really is a mind game - small amounts snowball, over time <u>compound interest</u> generates wealth. Unfortunately saving too slowly that happy time for (rest, personal pursuits and personal work choice) will be a long way off.<br />
<br />
Something has to give. <br />
<h2>
How much should I spend to not be a misery guts?</h2>
It is easy to really hack your spending. Several posts on this site have covered the steps our TRiBe <br />
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<tr><td class="tr-caption" style="text-align: center;">Worth Visiting</td></tr>
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has taken to annihilate our WASTEFUL spending in a way that did not detrimentally affect our comfort and happiness. <br />
<ol>
<li><b>Transport </b>- Simple - buying a car that is too big or too fuel in-efficient does not make sense. You just need to get from A-B. Why do it expensively? At the end of they day you might as well take the notes from your pocket and set fire to them - a massive waste of resources for you and the nation.</li>
<li><b>Heating </b>- going freezing cold is probably a bad idea and likewise being too hot is a waste (see transport). Spending loads of money on a fossil fuel means you are reliant on someone else providing it. Perhaps you should invest your hard-earned money in changing the fossil-fuel heating to wood (or a heat pump for instance) and insulating your home. Again what is too much? 10% of your income spent on heating/ cooling is probably fine so forget about it and move on. </li>
<li><b>Food </b>- going cheap probably = poor diet and = future health costs > buy fresh food and don't waste food. </li>
<li><b>Fun Pot</b> - Upgrading a gadget, a coffee, beer or cake or visit to the zoo- make sure there is a % of your income to LIVE in THE.PReSeNT - that is our happy time - NOW.</li>
</ol>
<h2>
How much should I save to gain my freedom?</h2>
<ol>
<li><b>Too much</b> - you will not have much of a life - scrimping and saving at a time when you are in the prime of your life. That proverbial bus with your name on it could be around the corner. What about finding that perfect partner, travelling and experiencing different cultures. Invest in expanding your knowledge and learning lots of new things who knows where it will take you (literally).</li>
<li><b>Do not forgo Ambition </b>- Don't be afraid to take financial risks when you are young. At a young age the amounts involved are likely to be trivial (put things in perspective what is $10K lost on a business compared to the opportunity of $$$$ when you are young and have nothing to really loose except face? Go on and take a risk on a better job, don't be afraid to move to a different country, have a go at starting your own business. Be fearless. Soon you will have a substantial income instead of a mediocre income to save substantial sums.</li>
<li><b>Start Cash Flow Investing</b> as soon as possible. Try starting with readily available assets such as rental / commercial property, REITS or dividend stocks where small amounts of money can be easily deployed. Alternatively invest in YOU perhaps some training or equipment that you can use to gain money e.g. an embossing machine, lawnmower for a gardening business, programming course etc.</li>
<li>Saving can mean <b>other things</b> as well such as</li>
<ol>
<li><b>Reductions</b>: always asking for a discounts and deals, surf the net for discount codes</li>
<li><b>Choose not to incur an expense</b>: can I walk,and have a meal and movie at home instead of cinema. Lots of little compromises really add up - think before you spend or sign up for any contract.</li>
</ol>
</ol>
<h3>
A reasonable budget for a FI enthusiast?</h3>
<ul>
<li>Food (10%)</li>
<li>Transport (5%)</li>
<li>Utilities (5%)</li>
<li>Mortgage (30%)</li>
<li>Other (5%) - fun stuff and unexpected costs</li>
<li>Savings (35%)</li>
</ul>
Why not pull together your spending and group them into categories and percentages. Do they seem reasonable to you? Are you missing out on something? If I moves some spending from A>B will i be happier or will i reach my goals earlier? <br />
<ul>
</ul>
<h2>
When have I saved enough?</h2>
In the TRiBeS experience what we thought we needed versus what we actually need are VERY difficult to reconcile. What will you new life look like and how much will it cost?<br />
<br />
I guess the question for us was how much can we continue to save once we have stopped working. <i><b>It would be idiotic to retire on just enough</b></i>. Shit happens all the time in the world. A safety buffer is always needed and is very sensible.<br />
<br />
For example we have seen some of our dividend income reduce due to the commodity crash. It will return in THE.FuTuRe but now we have less money coming in. Perhaps commodities could reverse and inflation will begin to outstrip our income for a while or taxes rise faster than our ability to pay them - who really knows? <br />
<br />
Our pre-financial independence saving rate was North of 50% (of a large corporate salary). Now we are aiming at saving 20% of a substantially smaller income.<br />
<br />
Additionally we are putting aside a further 20% of our income for "fun stuff". Our kids need experiences to grow, mindlessly penny pinching would be at the detriment to their futures. We need to arrange trips to interesting and fun places and plan challenging activities for them.<br />
<h2>
Making the right personal choices </h2>
<b>So there you have it the pursuit of financial independence and happiness on the opinion of this author is <i>REALLY</i> about gaining personal wisdom. </b><br />
<br />
<b>This mainly takes the form of financial (tracking your finances and making informed, thoughtful, good decisions) and emotional intelligence (growing up and learning to be being responsible, not panicking and jumping to conclusions). </b><br />
<br />
<b>Wisdom is knowing, not being told or shown, what makes you happy - are we there yet?</b><br />
<br />
Peace, prosperity and happiness<br />
<br />
<b>CoNTeNDeR</b><br />
<br />
*The alternative is becoming very good at following capital across the 
globe. You would need the ability to move capital from country to 
country and between asset classes - not easy to time or identify where 
it will go next and well beyond a person with average means.<br />
<br />
<b>Welcome New Readers!</b> Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a><b> </b>to find out more about <b>THE.TriBe</b> and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank"><u>all posts list</u></a>, Please feel free to play with the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">planning tools and checklists</a>. If you liked this post can you please spare a few seconds to share it?

Spendthrift Or Save Bore

Corfe Castle - A bad investment? Bad advice on Spending, Saving and Investing I have been reading a few posts recently going along the...

20 Positively Stubborn Ways to be FI

Contender 3 Conformity, Critical Thinking, downshifting, financial independence, Freedom, frugality, Habits, Happiness, health, Risk 18:40

<br />
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<tr><td class="tr-caption" style="text-align: center;">Learning a new skill</td></tr>
</tbody></table>
I love days when I am put in my place. Learning from an expert and proving to me how little I know.<br />
<br />
Today was one of those days - a humbling experience using a chainsaw. One I will reflect upon many years in the future.<br />
<br />
A chainsaw is a powerful and dangerous machine that you must respect. It is a marvel. At the same time cutting the trees is a bit of an art that takes time to perfect.<br />
<br />
Felling old and new trees will provide warmth for Tribe in the winter making way for new growth. <br />
<br />
<br />
<br />
<br />
<b>Looking at THE.PaST I would never have done this if we did not stubbornly believe in our goal of financial independence in a countryside house. Below I have outlined 20 stubborn steps towards FI which will ultimately make you stand out from the crowd. </b><br />
<br />
<span style="font-size: large;">Our Stubborn Waste of Wisdom</span><br />
<br />
You start out in life knowing nothing and leave this life knowing a lot. Unfortunately, in THE.CoNTeNDeR's humble opinion, western society does not value wisdom. It really does not give a f****.<br />
<br />
Get out of the way, old man, you are hogging the jobs. Retire, you dinosaur.<br />
<br />
Is it me or is there something seriously wrong in the western world where old people are marginalized and their wisdom is not passed on but mainly deemed outdated. What is out-dated anyway? Is "deliver to your door" and "work till you drop" in front of a computer all that matters nowadays or a means of controlling production and distribution in a way that means profits and taxes?<br />
<br />
We are a stubborn bunch and as a result we are not capable or knowledgeable of the basics of living. This may sound harsh but how many people understand how to wire a plug nowadays.<br />
<br />
The wise old men could teach us DIY and grow your own, tax returns, financial decision making. We are too busy, we do not need to know how to do this, we can take out a loan and pay someone else a lot of money to do it so that we can go and have fun playing videogames.<br />
<h2>
Ignore the crowd / society and be a stubborn bastard</h2>
Making a difference generally means being different. Sure, everyone is different, don't get me wrong but going to work for someone else generally reduces your ability to really make a BIG difference for society and yourself.<br />
<br />
Companies need people to do work accurately and quickly. Efficiency and productivity are the buzz words. Make lots of small differences in work and collectively the company does well. At the same time one's ability to make a REAL difference to society as a whole is EXTREMELY limited.<br />
<br />
Working for someone else<br />
<br />
1. Limits your income - the company makes more money from the work you do than they pay you.<br />
2. Takes up the majority of your time, thus limiting the time you can dedicate to thinking and actually making a real world difference.<br />
3. Conditioning - 9-5 is the norm, a monthly paycheck is the norm, a commute is normal.</div>
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<br />
I wonder what Plato and Socrates would have thought of modern society. I have a hunch they would marvel and be repulsed at the level of control society has over us. </div>
<h2>
Learn to Be Different</h2>
<div class="MsoNormal">
Making a difference means breaking free from normal. Valuing risk over percieved safety and <br />
<div class="separator" style="clear: both; text-align: center;">
</div>
conformity. Learning to embrace failure instead of fear?<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeB0x3s3iJQAccXJ_DTqWOHOAdJI5XJIvOF7vQAOJI2SqF_6EhOowIMYWn5rx-5oPfVmADenIs0JWPXdHROUFZdpe53BtxNTxg9h6vf_T6TDTe4zggkwFOrdxzsM3CGjzRebZR2_vUdKbO/s1600/P1040203.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Skills for life" border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeB0x3s3iJQAccXJ_DTqWOHOAdJI5XJIvOF7vQAOJI2SqF_6EhOowIMYWn5rx-5oPfVmADenIs0JWPXdHROUFZdpe53BtxNTxg9h6vf_T6TDTe4zggkwFOrdxzsM3CGjzRebZR2_vUdKbO/s1600/P1040203.JPG" title="Learning something new" width="181" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Catching tiles at the renovation project</td></tr>
</tbody></table>
<br />
Before we get to the <b>Stubborn Financial Independent Ba***** List</b> let's start with the difference between knowing
 and believing. They are completely different but both can be right and 
wrong. Always challenge the status quo thinking (ideally in your head and not out loud if you see what I mean).<br />
<div class="MsoNormal">
<br />
Without trying something for yourself, you will never know. As mentioned above the best way to get ahead in life is to go safe my lad, collect
the monthly pay check and off to the pub. Let's break this down as an example and Ask WHY five times<br />
<ol>
<li>Why do I want to work until retirement & who said that we should? </li>
<li>Why don't I retire early?</li>
<li>Why can't I retire early?</li>
<li>Why do I need to save so much to retire early at my CURRENT living standard?</li>
<li>Why can't I save enough to have the living standard I NEED?</li>
</ol>
</div>
<div class="MsoNormal">
The 5 whys is a powerful technique used to simply think. Seek questions and the answers will follow. It can be applied to so many things in life. Why do I need to buy THIS CAR / HOUSE / VACATION. Have this JOB, FRIEND, DESIRE. Perhaps give it a go now on a subject close to your chest.</div>
<h2>

</h2>
</div>
<h2 class="MsoTitle">
Be Different</h2>
<div class="MsoNormal">
Perhaps being a right selfish bastard has some merits…. providing it is in the right context, taken with a pinch of salt and ideally hidden from sight and not talked about.<br />
<br />
A small note of caution, we need to be careful and stealth-full when starting out on a FI journey. Testing the waters with people around you is advisable before "coming out" full on about FI OR just keeping quiet may be in your best interest at first. Unfortunate consequences from being too bold could be to alienate family, friends and colleagues which may ultimately damage your happiness and ability to become financially independent.<br />
<br />
See the post <a href="http://getintheringwithme.blogspot.com/2013/03/downshifting-what-are-you-doing.html" target="_blank">Downshifting are you mad???</a><br />
<h2 style="text-align: center;">
The Stubborn Financial Independent B****** List </h2>
<ol>
<li>Be strong minded and know what you want - dedicated to your mission to obtain what you want.</li>
<li>Keep to your goal but allow yourself to change the way to get there.</li>
<li>Refuse silly stressful timelines - pointless, showing off and asking for trouble.</li>
<li>Don't finish anything fully - waste of time and effort. 20% effort 
will produce 80% of the desired result move on and let someone else do 
the rest.</li>
<li>Question the given "truth" - there is always two sides to any "story" and ask what is in it for me.</li>
<li>Avoid all labels and brands and forget what people say - learn to dress well for less and have a signature. Perhaps a hat, tie, scarf or color. People will ultimately remember you more.</li>
<li>Refuse to accept the price you are offered - everything can be bartered or they loose your trade. Worst thing that can happen is you shop around for a better price cannot get it and have to go back to the same store.</li>
<li>Refuse to gossip - pointless, negative and destructive</li>
<li>Refuse un-ethical work / lying: leave it to someone else with no morals - do you really want to live with it?</li>
<li>Throw away the idiot box (TV) and avoid advertising. Always ask they are telling me this because... we want you to buy something</li>
<li>Do not give up private information for something "Free" - you will be marketed by something on a personal targeted note. </li>
<li>Never eat junk food on at least 6 days a week - go to a burger joint with friends once a week but otherwise eat well.</li>
<li>Refuse to "ride" when you can walk.</li>
<li>Pay a fair share of tax but take all the tax breaks you can get. They are there (such as paying into a pension) so you are entitled to them. I will leave up to you what you believe your fair share of tax should be (noting that the rich like capital gains tax as it is only charged at 18% in the UK)</li>
<li>Keep to your principles and habits if someone says come on this will be fun or are you a wimp - just say NO. </li>
<li>Don't buy presents and don't ask for presents - make them. A drawing, a cake, a pot of jam or tomato chutney.</li>
<li>Mothers / Fathers day, Christmas, Easter Bunny and the Halloween pumpkin lantern are all just clever marketing tools to make you waste money, food and resources on an unprecedented scale.</li>
<li>Avoid all expensive hobbies and sports, golf, skiing, wine club, going to watch games and sport, computer gaming with the latest equipment etc... find a cheap or useful hobby instead. Walking with the local ramblers club, playing football in a team.</li>
<li>Refuse to kiss arse, just be the best</li>
</ol>
</div>
<h2 class="MsoTitle">
Go out and Be Stubborn</h2>
<div class="MsoNormal">
So what if someone comes back to you and calls you STUBBORN a
MISFIT or a TROUBLE MAKER? Well, rise above that. How do you change the perceptions and how do you really MAKE A DIFFERENCE.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
No matter what you do, make a POSITIVE difference. Be POSITIVE.
Have a GO. Stubborn is not bad, it is CONFIDENCE, CONVICTION and willingness to take RESPONSIBILITY. It is making a difference positive or negative. Shake the boat
and see what falls out. If it was you, it was for a reason and you learnt
something from it for a reason.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We only live one life. A sacking is a learning and an
opportunity. Standing up for yourself breads self-esteem, relationships and
confidence.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>CoNTeNDeR Stubborn to the Core.</b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
<b>Peace, respect and tranquility to all stubborn b******* out
there :)</b></div>
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<br /></div>
<b>Welcome New Readers!</b> Please take a look around.<a href="http://getintheringwithme.blogspot.com/p/about-me.html" target="_blank">Click here</a><b> </b>to find out more about <b>THE.TriBe</b> and the blog is or perhaps browse the <a href="http://getintheringwithme.blogspot.com/p/all-posts-get-in-ring.html" target="_blank"><u>all posts list</u></a>, Please feel free to play with the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">planning tools and checklists</a>. If you liked this post can you please spare a few seconds to share it?

20 Positively Stubborn Ways to be FI

Learning a new skill I love days when I am put in my place. Learning from an expert and proving to me how little I know. Today w...

Defensive Investing

Contender 0 Critical Thinking, Dividends, downshifting, financial independence, frugality, Planning, Saving 17:41

<br>
<div class="separator" style="clear: both; text-align: center;">
</div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd6l9SplfyyjtKqRtXxwTuVxJ6dmEdF6e5IcUCRtZW-a5JtdVRCca_-SZXXJcBMdA4Xg55YAhHwVWKwr2Vs6WE5AzLWn40s-T00BukpfVSRCJs4kKUIoBgLn1KSJK3H3QF6GFT-dkGES9Z/s1600/DVGI.PNG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="181" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhd6l9SplfyyjtKqRtXxwTuVxJ6dmEdF6e5IcUCRtZW-a5JtdVRCca_-SZXXJcBMdA4Xg55YAhHwVWKwr2Vs6WE5AzLWn40s-T00BukpfVSRCJs4kKUIoBgLn1KSJK3H3QF6GFT-dkGES9Z/s1600/DVGI.PNG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Everyone needs a system to select shares</td></tr>
</tbody></table>
<b>In this post I am going to talk about  investment timing decisions in particular:</b><br>
<b><br></b>
<b>1. A new financial independence striver<br> </b><br>
<b>2. Someone who has already amassed significant investments<br> </b><br>
<b>3. Changes to the TRiBeS investment approach <br> </b><br>
<b>4. <u>The latest DVGI (Dividend Value Growth Investments) screener results for the UK and US (at the end of the post)</u></b><br>
 <b><u><br></u></b><br>
<ul>
<li>No one can accurately predict THE.FuTuRe</li>
<li>Human beings are emotional and sometimes delusional</li>
<li>Timing is important </li>
</ul>
So what is the link between these statements and financial independence planning? Well over the past five years the stock market has done very well. At the same time THE.PaST tells us it corrects around every 5 - 8 years. Does it continue to rise over the next few years or do we get a correction. There are numerous opinions out there on the web.<br>
<br>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://dshort.com/inflation/inflation-recessions-sp500.gif" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="290" src="http://dshort.com/inflation/inflation-recessions-sp500.gif" width="400"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">source: dshort.com</td></tr>
</tbody></table>
But this time is different right? There is no need to be cautios as the Fed has our backs covered. So go ahead and go all in now.<br>
<br>
Hold on a second....If you are starting to invest in the stock market at this juncture is this wise?<br>
<br>
If you are fully invested and enjoyed the good run should you be cautious and check out some of your chips? <br>
<br>
Or are you confident of further gains and are adding to your positions?<br>
<br>
Here is a quote from a seasoned trader Dan Norcini on holding onto a loosing position which I think is pertinent if you flip it on its head and consider it from a winning position as well:<br>
<blockquote class="tr_bq">
<i><span style="font-family: inherit;">"They may pride themselves and 
encourage their followers to, "Stay the course". That is great if you 
are a sailor on the ocean and are being buffeted by some high waves and 
gusty winds but at some point the winds and the waves will force even 
the most stalwart of mariners to take a detour out of their way if they 
wish to avoid getting slammed into the rocks or going down. It is called
 "prudence". </span>
<span style="font-family: inherit;"><br>   </span>
<span style="font-family: inherit;"><br>Those who "stay the course" and keep
 pushing ahead out of sheer stubbornness often pay the price with their 
lives. Same goes for trading or investing - at some point one has to 
"take a detour" to skirt the danger so as to arrive safely at the final 
destination. </span>
<span style="font-family: inherit;"><br>   </span>
<span style="font-family: inherit;"><br>Spitting into the eye of a hurricane
 just gets your face wet and does nothing to force the hurricane to 
change directions. It is going to go wherever the hell it wants to go 
and it could care less what you want. This is how markets are - they go 
where they want, when they want. If you are smart, you learn to either 
go with them or get out of the way"</span></i><br>
<br>
<a href="http://traderdannorcini.blogspot.fr/2014/05/euro-weakness-remains.html" target="_blank">Trader Dan Norcini</a></blockquote>
<br>
<span style="font-size: large;">Time to sell growth and cyclical stocks?</span><br>
<br>
Are we now in a position with the markets we we could be lured into the trap outlined by Dan above. Could the market change direction and we hold on for dear life waiting for the tide to change.<br>
<br>
I have first hand experience of working on a cyclical business - semi conductors. A new super chip would be designed the factories built then the chip sold for the next few years until the next super chip is designed and the whole cycle starts again. The business knew this happened therefore it set itself up for, and planned ahead, for these cycles. It did this through sub contracting, temporary contracts and stock management.<br>
<br>
Coming back to point can we manage our investments in this manner or are we doomed to failure? Are we doomed to re-produce past mistakes such as the Tech Bubble.<br>
<br>
Growth stocks have been back in vogue and are trading at very high price to earnings ratios. Well known names such as Facebook, Amazon, Twitter have soared based on future growth and revenue expectations / forecast. Are they really going to deliver unlike the companies in the last Tech bubble? Should we downsize our investments now?<br>
<br>
Lets consider some different circumstances:<br>
<br>

Defensive Investing

Everyone needs a system to select shares In this post I am going to talk about investment timing decisions in particular: 1. A new...

Financial Independence Options

Contender 1 Budget, downshifting, Early Retirement, Finance, financial freedom, financial independence, frugality, Planning, Saving 18:30

<br>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgd1syanQlk2GItLa_aUGHnkZXNH83nxU8ahTEr603DmyM4I0b7y00Sh4quRdifApXN6uRThdjLv9Fz7HCn_qPjuxjktxgX-C5IW1htIFSJCg4FwX8hdJN7jPlMmXygZPwyU9bF98-kMaRQ/s1600/TeddyFamily.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgd1syanQlk2GItLa_aUGHnkZXNH83nxU8ahTEr603DmyM4I0b7y00Sh4quRdifApXN6uRThdjLv9Fz7HCn_qPjuxjktxgX-C5IW1htIFSJCg4FwX8hdJN7jPlMmXygZPwyU9bF98-kMaRQ/s1600/TeddyFamily.jpg" width="320"></a><i><b>Mr Teddy Bear</b>: "Time to review our family finances and consider where are we going. Let's get the facts and run the cold hard numbers.<b>"</b></i><br>
<br>
<i><b>Mummy Bear: </b>"Oh daddy bear you are so cuddly when you talk tough"</i><br>
<br>
<i><b>Baby Bear: </b>"I want a games station, mobile computer, princess bike and trust fund...Now!" </i><b></b><br>
<br>
<b><br></b>
<b></b><br>
<b><br><br><br><br>This post is about a few hypothetical scenarios entered into the NEWLY UPDATED financial time line planner.</b><br>
<br>
The financial time line planner has received a little bit of tender and loving care in the last week. The following has been changed / added:<br>
<ul>
<li>Mortgage calculations</li>
<li>Debt repayments</li>
<li>Improved graphics</li>
<li>Financial scenarios</li>
</ul>
Here<u><b></b></u> we are going to look at three different type of people and see how the timeline works for them:<br>
<ol>
<li>A fun loving/carpe diem 25-year old on a professional career who loves #selfies</li>
<li>A 35-year old looking to #downshift as fast a possible</li>
<li>A clued up 25-year old who is going for #ExtremeEarlyRetirement</li>
</ol>
<span style="font-size: large;">Party on! CEO, Playboy, Sports car, Mansion, Hawaii </span><br>
<br>
Our
first example is the one <b>THE.CoNTeNDeR</b> started out in life believing would make him happy...
 This was soon dashed by the property boom in the UK effectively resigning him to having to rent for teh rest of his life. This caused a huge
 shift in <b>THE.CoNTeNDeR's </b>financial mindset.<br>
<br>
So here is a representation of an ambitious 
life and fun loving 25 year old looking to climb the corporate ladder. He is going to enjoy the high life and 
all the consumer goods on offer. The result shows 
the need for an ever increasing income to pay for the increasingly high 
life living costs. Although cash flow rich and materially wealthy on the outside he needs to keep the hamster wheel turning to avoid a nasty shock. <br>
<br>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPpB7FSHuFFq8TAcVD_asBjBQM7RfN5sEv1nRMLb3J64muOSkLcGy8xKjM3PECY7aw67xshcKnH00X2mg5XNdz8M9zWiS0WhxNjQKx3X11porbBrw9AITggaolEfXRPMIxnx896jgfjt1Z/s1600/25yrPartyOn.JPG" style="margin-left: auto; margin-right: auto;"><img border="0" height="195" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPpB7FSHuFFq8TAcVD_asBjBQM7RfN5sEv1nRMLb3J64muOSkLcGy8xKjM3PECY7aw67xshcKnH00X2mg5XNdz8M9zWiS0WhxNjQKx3X11porbBrw9AITggaolEfXRPMIxnx896jgfjt1Z/s1600/25yrPartyOn.JPG" width="400"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">CLICK ON PICTURE !</td></tr>
</tbody></table>
<br>

Financial Independence Options

Mr Teddy Bear : "Time to review our family finances and consider where are we going. Let's get the facts and run the cold hard num...

Learning from THE.PaST

Contender 0 Black Swan, Critical Thinking, Dividends, downshifting, Early Retirement, frugality, Gold, health, Oil, Silver, stock screen, Wheat 19:37

Learning from THE.PaST

A cold start to the year? THE.FuTuRe : "CHUMP you still there? Learn from me and THE.NoW forget THE.PaST he is a has been, now l...

Living With Little

Contender 1 Budget, downshifting, frugality, Habits, Happiness, Life 16:56

Living With Little

Living with less infographic from mnn While this site may not expose extreme very early financial independence by cutting expenses to no...

Happiness in France

Contender 2 Budget, downshifting, Early Retirement, early-retirement, financial freedom, financial independence, frugality 21:00

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyftYrWPcYnRT0DTE12zRkS9mw-jWrRFVOm8pF1kyEl9zdKENJGFIPRLAWw31g8qHdEFxTolh0OUnR8RuyRCgvqdiZ1r4D1g5ITfSGSnaQc6wDA5jaBkAQwFLCwWTMcR1KDsTKt0g_wsev/s1600/FranceTown.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyftYrWPcYnRT0DTE12zRkS9mw-jWrRFVOm8pF1kyEl9zdKENJGFIPRLAWw31g8qHdEFxTolh0OUnR8RuyRCgvqdiZ1r4D1g5ITfSGSnaQc6wDA5jaBkAQwFLCwWTMcR1KDsTKt0g_wsev/s320/FranceTown.jpg" width="320"></a></div>
<b>THE.PReSeNT</b>: <i>"CoNTeNDeR what are you up to? You have been all talk about this move to France THE.FuTuRe says you haven't got it in you besides FRA?NCE are you MAD? </i><br>
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<i>Aren't they all socialists that take all your money and tell you how to live your life? </i><br>
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<i>Come to your senses man. </i><br>
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<i>It may rain in Blighty a lot and the government may be a bit socialist and spend most of our money, badly.... but we have the pub! let's get down The Dog and Bone pub, have a few pints<span style="color: red;">*</span> and get p*****"</i><br>
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<a href="http://www.camra.org.uk/beertax" target="_blank"><span style="font-size: x-small;"><span style="color: red;">* Effective tax on a UK pint costing £2.50 is £0.97 - 38%!</span></span></a><br>
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<b>Here is an update and some reflections on our downshifting move to France NEXT MONTH:</b><br>
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<b>- Was Renting in the UK a good Choice?</b><br>
<b>- How the move is going?</b><br>
<b>- What is on the cards for the TRIBE in the next 4 years?</b><br>
<b>-  Is it going to work for us?</b><br>
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<span style="font-size: small;"><span style="font-size: large;">Exiting the Rental Property in London</span></span> <br>
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Right now we are finalising our move to France. Mrs C resigned from her job one month ago. We have arranged to hand back the keys on our London rental property.<br>
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<table border="0" cellspacing="0" cols="1" style="height: 144px; width: 547px;">
 <colgroup width="85"></colgroup>
 <tbody>
<tr>
  <td align="LEFT" bgcolor="#C0C0C0" height="17" style="border-bottom: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000; border-top: 1px solid #000000;">To buy the London 3 bedroom terraced Victorian house it it would have cost $700,000.  With 20% down payment of $141,000 the mortgage would
 have been $560,000 and we would have to have paid stamp duty on the 
property $21,000.<br>
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The typical cost of a repayment mortgage over 25 years is (4.6%) = $3192<br>
The typical cost of an interest only mortgage is $2147<br>
The rent is $2080 per month</td>
 </tr>
</tbody></table>
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Was renting a good choice? We may have missed out on capital appreciation of the house. This would have been completely dependent on the timing of the purchase. Or we could be in negative equity. <br>
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By renting we abdicated the risk of owning the property. We did not have to pay for re-decoration, a new roof, new boiler and the mortgage arrangement fee, estate agent fee and the stamp duty to the government.<br>
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The "fees" and the deposit instead have been invested for capital gains via the stock market. This has allowed us to save in more diverse assets instead of the majority being tied to the property. <br>
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Some people have become very rich via property over the last decade and perhaps we did not understand the opportunities that were there at the time. Perhaps we were always intimidated by the large amount of money and the commitment involved.   <br>
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Happiness in France

THE.PReSeNT : "CoNTeNDeR what are you up to? You have been all talk about this move to France THE.FuTuRe says you haven't got it...

Frugality+Budgeting+Investing+Planning+ Hard Work=Financial Independence

Contender 2 book, Early Retirement, financial independence, frugality 14:46

<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQ74fArQVPm-6eMFn0rAZrgpQDZjvyfur3aB9lYdcUxbGrkfQQ_x-IbFB2tJgm4xeNO0XVxgzus07WQKreBs0km-uCg0EcdKYcWxtXb5j0wIUBtBNRXKxFXQxB54AlzK2v2-iacTdNL4s0/s1600/ThailandCM.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQ74fArQVPm-6eMFn0rAZrgpQDZjvyfur3aB9lYdcUxbGrkfQQ_x-IbFB2tJgm4xeNO0XVxgzus07WQKreBs0km-uCg0EcdKYcWxtXb5j0wIUBtBNRXKxFXQxB54AlzK2v2-iacTdNL4s0/s320/ThailandCM.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Nice shiny stuff - usually very expensive....</td></tr>
</tbody></table>
<h2>
<span style="font-size: large;">Exposing the ways of the financially Independent Wealthy </span></h2>
<i><b>SPEND.A.LOT: </b>"I'm off shopping it's Saturday after my pay check. I've worked hard this month and deserve a new pair of shiny flashing light beep beep sneakers"</i><br>
<i><b>THE.CONTENDER: </b>"Aren't the beep beep sneakers way expensive? Can you buy them out of your pay check after paying all the bills?"</i><br>
<i><b><br></b></i>
<i><b>SPEND.A.LOT </b>"Well I just received this card through the post it has $2,000 of credit to spend now on it and no payments for 6 whole months - result! I want a new car as well there is a nice sports car in the local dealership with 10%. We can use the other car for the kids and I get to look the business"<b><br></b></i><br>
<span style="color: blue;"><b><br></b></span>
<span style="color: blue;"><b>Card issuer (AKA THE.FUTURE) - </b>what a sucker! They never read the small print, interest rate of 2000% he will be my little slave before he knows it.</span><br>
<i><b><br></b></i>
<i><b>THE.CONTENDER: Would you hold off your purchases a minute<span style="color: blue;">,</span> mate? I would like you to read a little book before you buy the sneakers and new car. It is called "The Millionaire Next Door"</b></i><br>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://ecx.images-amazon.com/images/I/21LiILnlkNL._BO2,204,203,200_PIsitb-sticker-arrow-click-small,TopRight,12,-30_AA300_SH20_OU02_.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="200" src="http://ecx.images-amazon.com/images/I/21LiILnlkNL._BO2,204,203,200_PIsitb-sticker-arrow-click-small,TopRight,12,-30_AA300_SH20_OU02_.jpg" width="200"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b>Millionaire Next Door on Amazon</b></td></tr>
</tbody></table>
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<span style="font-size: small;"><b>"The Millionaire Next Door<span style="font-size: small;">" by Thomas Stan<span style="font-size: small;">ley and William Danko  </span>expos<span style="font-size: small;">es the truth tha<span style="font-size: small;">t great <span style="font-size: small;">defense</span> (<span style="font-size: small;">that is "</span>controlled spending on necessities" <span style="font-size: small;">compared to <span style="font-size: small;">consumerism<span style="font-size: small;"> is the road to wealth. 1 Million + copi<span style="font-size: small;">es <span style="font-size: small;">sold </span>in the US alone <span style="font-size: small;">speak for itself.</span></span></span></span></span></span></span></span> This post ha<span style="font-size: small;">s:</span> </b></span><br>
<ol>
<li><span style="font-size: small;"><b><span style="font-size: small;">A</span> short review of the book </b></span></li>
<li><span style="font-size: small;"><b><span style="font-size: small;">THE.CONTENDER <span style="font-size: small;">c</span>oncerns for<span style="font-size: small;"> the <span style="font-size: small;">k</span>ids</span></span></b></span></li>
<li><span style="font-size: small;"><b><span style="font-size: small;">A</span> look at putting some of the recommendations <span style="font-size: small;">of the book </span>into practice</b></span></li>
</ol>
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"The Millionaire Next Door" written in 1996 investigates the lives of the wealthy. Their spending habits and investing traits versus high income low net worth individuals. Again the same result as the one THE.CONTENDER believes in:<br>
<br>
<div style="text-align: center;">
<span style="font-size: large;">Frugality + Budgeting + Inves<span style="font-size: large;">ting + </span>Planning + Hard Work </span></div>
<div style="text-align: center;">
<span style="font-size: large;">= Financial Independence</span></div>
<br>
<span style="font-size: large;">T<span style="font-size: large;">he</span> B<span style="font-size: large;">ook</span></span><br>
<span style="font-size: small;"><b> </b></span> <br>
Simple enough isn't it? What was more fascinating about the book for daddy CONTENDER is the impact of your own consumption and traits rub off on the kids. In the book some very concerning points are made.<br>
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<span style="font-size: small;">Spendthrift high income families generally:</span><br>
<ol>
<li><span style="font-size: small;"><span style="font-size: small;">Care about status an<span style="font-size: small;">d keeping up with the Jones</span></span></span></li>
<li><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">Spend a<b> </b>lot on expensive <span style="font-size: small;">consumer goods (Cars, boats, clothes, blenders, <span style="font-size: small;">cappucino</span> makers and the like</span></span></span>)</span></li>
<li><span style="font-size: small;"><span style="font-size: small;">Do not have a household annual budget</span> </span></li>
<li>Do not dedicate enough time to financial planning and investing</li>
<li>Some rely on sustaining their lifestyle on "gifts" from rich parents.</li>
</ol>
<span style="font-size: small;">Compare this to millionaires</span><br>
<ol>
<li><span style="font-size: small;"><span style="font-size: small;">They save at least 15% of their income</span></span></li>
<li><span style="font-size: small;"><span style="font-size: small;">Their income is a very small part of their total wealth</span></span></li>
<li><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">A<span style="font-size: small;"> significant amount own their own business, leverage their contacts to get good deals and business passed onto them.</span></span></span></span></li>
<li><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">Are humble in front of their employes and<span style="font-size: small;"> <span style="font-size: small;">neighbors</span> showing no signs of their real wealth</span></span></span></span></li>
<li><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">The are fully satis<span style="font-size: small;">fied with their humble living and have no intention to change and tu<span style="font-size: small;">rn into a consumer<span style="font-size: small;">. They have c<span style="font-size: small;">learly defined life goals.</span></span></span></span></span></span></span></span></li>
</ol>
<span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">It is a <span style="font-size: small;">fascinating</span> look into the lives of the <span style="font-size: small;"><span style="font-size: small;">wealthy</span> with loads of case studies<span style="font-size: small;">. What is even better is that as it has sold over a million copies, you can pick up a second hand copy for a very modest price so I cannot <span style="font-size: small;">recommend</span> the book highl<span style="font-size: small;">y<span style="font-size: small;"> enough.</span></span></span></span></span></span></span></span></span><br>
<br>
<span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><b><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-size: small;">Please read on for the  impact on <span style="font-size: small;">the kids, FI state of m<span style="font-size: small;">i</span>nd <span style="font-size: small;">what would the Millionaire Next Door ask himself?</span></span></span></span></span></span></span></b> </span></span></span></span><br>

Frugality+Budgeting+Investing+Planning+ Hard Work=Financial Independence

Nice shiny stuff - usually very expensive.... Exposing the ways of the financially Independent Wealthy SPEND.A.LOT: "I'm off ...

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