FISH | Financial Independence Seeking Happiness

Financial Independence For The People

Contender 2 Blog, downshifting, Early Retirement, financial freedom, financial independence, Work 22:46

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This is a follow on from the last post <a href="http://getintheringwithme.blogspot.co.uk/2013/07/do-right-thing.html" target="_blank">Do The Right Thing</a> - is financial independence the right thing to do considering some of the challenges in the world.   
 
Here the discussion moves on to whether financial independence is a valid life challenge, an alternative to the 
status quo OR shunning the masses and joining the elites. Is it 
taking advantage of the system, getting with it, a chance to downshift or just opting out? 
 
Is financial independence taking the easy route and freeloading? 
 
THE.FUTURE: "CoNTENDER
 the FREELOADER what a F****** WASTE! What a looser. Hiding from me again, afraid to get in the ring and fight. Stand up man. Accept it someone else will take your place - you can't protect them by hiding away. Do you think you are setting a precedent? Who
 will run the factories and drive the trains if too many people downshift! Who will be MY 
servants?" 
 
Here are a few options to obtaining a passive income and a brief critique: 
 
Owning part of a businesses for 
income, means that you are reliant on the hard work of employees for that privilege. This could bee seen as taking
 advantage OR are you helping to supply jobs instead? Realistically in the scheme of things, owning a few stocks to gain an 
income for a frugal family is not going to have any impact on the 
investing landscape of the world. 
 
Buy to Let - get some tenants 
to pay for your lifestyle because they cannot afford to get on the housing ladder so are stuck renting OR are you a good landlord providing quality housing fulfilling a community need? 
 
Perhaps business property is better. Businesses don't like to buy - what if they have to move operations, cut or increase staffing. Business property requirements change very frequently. Is this a better place to invest? 
 
What about peer to peer 
lending - riding the debt wave, charging people exorbitant interest. Is 
that fair helping to / being part of building their debt prison? 
Is that doing the right thing? THE.CoNTeNDER thinks this is predatory and sucks. 
 
Government bonds - ultimately a taxpayer liability. If you buy them does it encourage politicians to issue more? Can one
 "trust" the government to pay the bond back - think about Greece and Cyprus in modern times. 
 
Alternatively
 go completely off grid, get out of the system altogether but at what 
cost to you and your family? Is this even more selfish?

Financial Independence For The People

This is a follow on from the last post Do The Right Thing - is financial independence the right thing to do considering some of the cha...

Do the Right Thing

Contender 4 Blog, Conformity, Critical Thinking, downshifting, Early Retirement, early-retirement, financial freedom, financial independence, Inflation, Investing, Life, Mid Life Crisis, Naive 23:17

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Is the Pursuit of Financial Independence Doing the Right Thing? 
 
THE PaST: "Go to school then study a degree that makes a difference to the world" 
 
THE.PReSeNT: "Go to school and study a degree to make you rich, all that touchy feely stuff won't pay, get a corporate job, go work in finance" 
 
THE.FUTURE: "sell your soul to me Muuugh Ha Ha Ha - OK a bit carried away just get into debt up to your eyeballs. I love a good debt slave, mine all mine." 
 
Has the world become more individualistic and materialistic? If you are not part of the system are you weird? Come on get with it, work hard, climb the ladder and load up on debt until you drop. 
 
Is this really the pursuit of happiness - stuff and job status or just a marketeers dream of control over the masses? 
 
Is getting with the system the way to go? if so why the F**** does this blog "chase" financial freedom?  
 
Why isn't THE.CoNtENDeR blogging about working, making a difference in BIG business?  
 
Perhaps the CoNTEnDER has got it all wrong. Perhaps he needs a good look at himself and get (back) with the system? 
 
Known, Know, NO's 
 
<div style="text-align: center;">
Let's start off with a few challenges THE.CONtENDER believes exist in the world, have shaped some of the thinking in this blog and yet we do very little about:</div>
 
We know burning fossil fuels is not 100% good. Particulate pollution and rising gases in the atmosphere come with some known and unknown consequences. On the other hand we have realised  the BIGGEST improvement in living standards mankind has ever seen. Life expectancies have increased dramatically. 
 
The group think it is now "normal" to burn fossil fuels, we are unsure of the consequences but are enjoying the ride while it lasts. 
 
We know that we live on a planet of finite resources but we still continue to consume them at increasingly faster rates. They will deplete - what do we do then? 
 
Someone will have to go without in THE.FUTuRE - be rich and buy our way out of it! 
 
We know work is good for us but too much work can be bad. We know that some stress (eustress) helps us fulfil our potential. At the same time a eustress 9-5 job is now becoming a stressed 8-9 job. 
 
Work adds meaning to life and stress is good for you as well as having money to exchange for some material comforts. You will have a career to look back on. You will have achieved something special in life - just make sure you are able to get the right job that pays well, letting you get ahead in life. 
 
We know that debt is bad so why do it? We know saving is good but the majority thinks saving 3-4% of their take home pay is very very good.  Invest it? Who are you kidding you cannot beat the professionals on Wall Street - pay them big fees to loose your money instead. 
 
Why save when we have a state and work pension. Inflation will erode the value of any debt we take on and our house will go up in price. My pay goes up over time so I will be able to pay for inflating goods and housing. I am told I need lots of shiny gadgets and lots of designer clothes. I need to be on the work bandwagon to afford it all. 
 
We know money doesn't grow on trees - it is made from them! On top of that more recently it is actually typed into existence on a computer - not the one I am typing on I am sad to say. Can fiat money really be a store of wealth when it can be created out of fresh air so easily? Go figure. 
 
The government is in control of inflation. Inflation = good and Deflation = bad because they say so. Just accept that it is good that your cash savings loose value each year and you have to pay more for goods and services. It is all OK as Inflation = good. 
 
The family structure is challenged by he reduced amount of time at home. On the flip side it has more money to spend than ever. 
 
The government is providing lots of tax incentives to help pay for child care at a creche. I need to be in work to accrue the state pension entitlement. Instead of the parent staying at home messing up their career their child can be happy with lots of other kids.

Do the Right Thing

wikimedia.com Is the Pursuit of Financial Independence Doing the Right Thing? THE PaST : "Go to school then study a degree that ...

Financial Independence in a FUBAR Economy

Contender Black Swan, book, Dividends, downshifting, Early Retirement, financial freedom, financial independence, Investing 11:14

Financial Independence in a FUBAR Economy

Original Photo by: Kheng Guan Toh Welcome Fight Fans well THE.CONTENDER has got himself into a pickle. He is unsure of his next move. ...

You Can't Take It With You

Contender 3 downshifting, Early Retirement, financial freedom, financial independence 10:25

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<a href="http://1.bp.blogspot.com/-alQZaDWdij8/UbcL7ZYX9iI/AAAAAAAACs8/Ouh5TldFozo/s1600/KeepCalm.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://1.bp.blogspot.com/-alQZaDWdij8/UbcL7ZYX9iI/AAAAAAAACs8/Ouh5TldFozo/s320/KeepCalm.jpg" width="274"></a>THE.FUTURE: "CONTENDER what is the point in fighting me. I will always be here. You came into this world with nothing and you will leave nothing - FACT! Do yourself a favor, give up now while the going is good" </div>
 
CONTENDER: "Ah I can't take it with me - I have heard that one a few times - I do, however, intend to leave something behind. Something for you to remember me by"   
THE FUTURE: "Thank you for your offer but I have no need for worldly goods. Just disappear as fast as possible"   
CONTENDER: "Why don't flatter yourself who said about leaving you stuff - what about some pleasant memories instead.... about your defeats, I am sure you would like to remember those!" 
 
How much saving and investing is needed for Early Retirement or Downshifting? A general rule is a investment pot of 25 times current spending = financial independence. Does this consider everything let's double check; what about looking at a NEW TOOL - creation of a full financial timeline of expenses and incomes? 
 
What is Financial Freedom to the Tribe? 
 
Dreams, Dreams, Dreams, we all need dreams and part of our little dream is getting close. In September our little tribe is moving away from the hustle, grime, crime and constant advertising in the city to the quieter French countryside. 
 
Our dream is to be free from consumerism and free from the trappings of an unwanted job to pay for our vices. Will the French countryside offer this to us? 
 
We are sure that THE.FUTURE will not let us have everything our own way though. The question is what will we be able to avoid in THE.FUTURE:   
No more appraisals in work; CONTENDER you have done OK but DO BETTER! - give me a break!  
No more living in a <strike>box</strike> small house. Where is the view? 
No more commuting - what a waste! 2hrs a day 5 days a week for 46 weeks in the year. 460 hrs per year = 19 full days in the car / train! Complete bonkers? 
No to conformity - at the desk by 9am? 
No to keeping up with the Jones. When is enough stuff enough? 
 
Our little tribe think we can be financially independent later this year. By this we think we will be able to buy a house outright and live off the income from our investments and at a later date our pension savings. 
 
Yes to choice - hiking or swimming, a bit of work, read a book, play with the kids or an educational activity 
Yes to responsibility - we are responsible for our place of living, kids education, long term finances 
Yes to fun - Less work = More leisure time = More fun for our little tribe. 
Yes to thinking, talking and reading more - It is nice to just sit under a tree on a warm summers day and think. Later have friends around for a bite to eat and talk about the silliness of the day ;) 
 
<div style="text-align: center;">
How have we come to this conclusion? Well we used a little financial tool which we have used to lay out our finances for the next 40+ years. We have been pouring over the numbers and different scenarios with the tool to visualise our possible financial future.</div>
 
A SIMPLE guideline for FULL financial independence is savings of 25 times current expenditure. Then expenditure is 4% of the pot each year. But what about buying a house, kids...... What if we layout ALL our expected expenditures and projected incomes on a timeline into the future. What would it look like? Will we have enough?

You Can't Take It With You

THE.FUTURE : "CONTENDER what is the point in fighting me. I will always be here. You came into this world with nothing and you will l...

Dividend Surprise Part 2

Contender 0 Compound Interest, Dividends, DRIP, Early Retirement, Finance, financial freedom, financial independence 08:49

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After taking a parting blow to the head from CHEAP.SHOT his sparring buddy THE.CONTENDER was dazed and disorientated. Is the right thing to be doing, he asked himself? This fighting THE.FUTURE stuff is quite risky. Is he risking it all on black? 
 
CHEAP.SHOT: "CONTENDER! CONTENDER! are you alright? Sorry mate I thought we were still sparring. I did not hear PLAN.AHEAD calling us over" 
 
PLAN.AHEAD took THE.CONTENDER to one side: "Look what happened, you dropped your guard. You thought you were safe and in control. This is a risky business and you need to have your wits about you at ALL times" 
 
In part 1 of this post (found here) we had a look at the pros and cons of dividend investing. Here in Part 2 we are going to have a look at the risks of investing in dividend stocks, our strategy and tracking progress. 
 
Personal Financial Goals 
 
As we are well into our financial freedom plans we have been fortunate to accumulate enough savings and investments to be very close to our desired goal. This is to buy a "nice" property in France and enough passive income to cover living costs. Currently this nest-egg is 2/3 in cash and funds and 1/3 is in dividend stocks. Ultimately we need our investments setup in the following manner: 
<ul>
<li>45% in cash to buy a property outright </li>
<li>45% in dividend stocks. We are aware the nominal value will rise and fall with the market and company performance but the income that we need will hopefully grow over time. </li>
<li>10% in our protection portfolio for emergencies cash and cash alternatives such as precious metals.</li>
</ul>
So what do I think are the risks that lie ahead for this approach if we follow this route? 
<ul>
</ul>
Mitigating Currency Risk 
 
US
 shares carry a premium (more costly / lower yield) to them but the dollar is the reserve currency 
of the world. Likewise UK and Continental European stocks carry Pound 
Sterling and Euro risk (get the money printing presses ready, Mr Carney - New Bank of England Governor) 
 
We are going to be living in France and paying for everything in Euros so what do we think are our options to reduce currency risk? 
 
a)
 Ideally we want to have much more income than outgoings if possible. This is the 
ideal situation as we can continue to invest and grow our income and 
it will provide a buffer in hard times. Likelihood low - we want to spend as much as possible on a home. 
 
b) Investments will be made in countries with strong currency fundamentals and good 
trade agreements that avoid double or punitive taxation. Global low cost
 funds can help to mitigate currency risk instead of trying to work out 
the "best" country to invest in. In our case we cannot invest in funds in the short term due to higher French taxation. Our income will be paid in multiple currencies before being converted to Euros. 
 
c) PROTECTION - our cash will be spread across different currencies and cash equivalents. Primarily this will be covered by income from multiple countries in the form of dividends, pounds, euros and some precious metals fund. 
 
d) We will monitor all investments and country risk monthly and change the mix of the portfolio as required. Our monthly dividend tracker and risk evaluator is outlined below. 
 
There are several countries and currencies that are of interest to our little tribe Canada, China, Chile, Singapore and to a lesser extent Brazil, countries located in Eastern Europe and Australia. 
 
Canada and Chile are of interest for example as they both have growing populations, an abundance of natural
 resources, are business friendly and have a lot of undeveloped land for agriculture and natural resources. 
 
For more on risk management and the low cost fund approach to investing have a look at the videos on the <a href="http://www.bogleheads.org/wiki/Video:Bogleheads%C2%AE_investment_philosophy" target="_blank">Bogleheads wiki</a>. 
 
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Please read on to have a look at the tribes own strategy and progress</div>

Dividend Surprise Part 2

Risky business be careful! After taking a parting blow to the head from CHEAP.SHOT his sparring buddy THE.CONTENDER was dazed and di...

Dividend Surprise Part 1

Contender 3 Compound Interest, Dividends, DRIP, Early Retirement, Finance, financial freedom, financial independence 12:46

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THE FUTURE: "Jobs are being created, resources are abundant and technology is amazing - go out and enjoy yourself - I will look after you!"   
PLAN.AHEAD: "That is all good mate but I want options. I want freedom to do as I wish. If I spend all my money today I will have none for tomorrow" 
CONTENDER: "What about dividend investing, will this work?"  
PLAN.AHEAD: "Contender, the stock market is a casino mate! you have less chance in it than in the ring with THE.FUTURE!" 
Over the past 12 months a lot of work has been carried out to develop a strategy for a sustainable dividend income for our Tribe.  
 
Part 1 of this post is going to look at the pros and cons of dividends versus capital appreciation of stocks. Part 2 is going to look at risks of investing in dividend stocks, our strategy and tracking progress. 
 
The Tribes Dividend Journey 
 
We have been investing heavily for the past 7 years in three portfolios GROWTH, INCOME and PROTECTION (covered here). It is only in the last year we have been heavily interested in increasing the share of the INCOME portfolio. In particular we are buying individual company shares for their dividends. 
 
To get to the target we are gradually selling our tracker funds from the GROWTH 
(Primarily global, European and emerging markets) and adding capital 
from dividends and adding income from Mrs C's [delete] income into individual shares. The PROTECT portfolio is staying static. 
 
In the current climate of a historically high priced stock market (P/E ratios are at towards the top of their historical trading ranges) and what THE.CONTENDER considers a stagflation environment this poses several concerns about the timing of owning MORE shares. 
 
We currently live in a very different financial landscape with lots of printed money circling the globe. This is very supportive of stocks so there is no reason to believe the stock market will capitulate just yet. 
 
<ul>
<li>Our exercise is moving money out of one group of shares (funds) to another group (individual dividend stocks) </li>
<li>We are adding some extra earned income so we are in effect nearly neutral on purchases.</li>
<li>Our objective is all about GROWING INCOME over CAPITAL APPRECIATION. </li>
<li>We are comfortable in owning a large amount of stocks but... we want to be more DEFENSIVE with the choice of these shares. </li>
<li>We are buying shares in these sectors that we consider DEFENSIVE: utilities, energy and pharmaceutical.</li>
<li>We consider their goods and services as a "need" instead of "want". </li>
<li>We understand dividends can be variable such as energy companies that are beholden to the underlying price the the commodity they are selling.</li>
<li>We hold some fixed income assets (preference shares and cash accounts) </li>
</ul>
While it may seem a little Kamikaze to keep holding so much wealth in stocks at the moment we are buying them for their income, not overall value (appreciation is desired ;). 
 
Perhaps lots of cash is better? Unfortunately like anything in life it is all about risk aversion. Cash loses value to inflation but is safe. At our point in our lives we are do [which one?] not need to be overly safe. If a problem happens we will do what it takes to get back on track. 
 
We are aiming for 80% INCOME and 20% in GROWTH and PROTECTION after the purchase of a property in FRANCE and the semi early retirement situation we are looking for. 
 
Starting a portfolio 
<blockquote class="tr_bq">
"An investment in knowledge pays the best interest." - Benjamin Franklin   </blockquote>
We have read about dividend investing from several sites and blogs such as the <a href="http://dividendmonk.com/" target="_blank">dividend monk</a>, <a href="http://seekingalpha.com/" target="_blank">seekingalpha</a>, <a href="http://monevator.com/" target="_blank">monevator </a>and several early financial independence blogs such as <a href="http://www.bravenewlife.com/" target="_blank">brave new life</a>, <a href="http://retireby40.org/" target="_blank">retire by 40</a> and <a href="http://jlcollinsnh.wordpress.com/" target="_blank">jlcollinsnh</a>. 
 
We have a list of our our current holdings and the current dividend income they provide per month. We have added "what if" we bought x shares in each company to work out what the portfolio could look like to generate our desired final income (more detail will be provided in part 2 of the post). 
 
All of the stocks are researched  (Mr C spends lots of time on this) and evaluated. Decision of what to buy each month are made by having a look at share valuations and performance. We are currently concerned about buying some of the shares we have identified that have had large run ups at the start of the year (typically 10-20%). 
 
We are currently targeting the "laggards" - shares that are behind the market gains. Is this a good approach? Laggards are usually laggards for a reason? Well perhaps that is because their sector is out of favor and might be the next "performer". There is a "risk on" appetite in the market so some defensive sectors have been laggards / sold off in favor of stocks with perhaps more growth prospects. 
 
Please read on for: Are companies paying dividends the right choice? High paying dividend stock considerations. Dividend champion investing.

Dividend Surprise Part 1

THE FUTURE : "Jobs are being created, resources are abundant and technology is amazing - go out and enjoy yourself - I will look afte...

10 Happiness Guidelines

Contender 0 Happiness, health 21:34

10 Happiness Guidelines

Someones Pursuit of Happiness? THE.PAST: "Happiness, snappyness! Remember all of those problems you have had, you will have them ...

Downshifting - Are you mad ??**!!

Contender 0 downshifting, financial independence, Happiness 14:46

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GET.A.LIFE: "I hear THE.CONTENDER is considering getting out of the game. What is he doing? Lack of status, no new shiny toys. You would not see me doing that - frankly nuts!"   
PUT.IT.IN.PERSPECTIVE: "Sounds interesting doesn't it? I have never really considered down shifting myself. I wonder what it would be like. Would I like it? Could I manage without my high salary? How could I possibly be financially independent from my job?"
 
 
GET.A.LIFE: "From what you have just said  my mind boggles. Just thinking about it gives me a headache. I have put so much into my career and lifestyle I would be mad to give it up." 
 
Our Tribe is well into its down shifting plans. We have addressed a lot of challenges but still many remain. We constantly go through all of the pros and cons of our plans. What if something happens to our forecast income once we have resigned jobs and downshifted and end up with much less each month? What if we cannot find the right place to live? Why don't we wait a while and stay where we are without changing anything? How long for? It is so easy to fall into having negative thoughts about changing. We needed other opinions and points of view. 
 
We have sought guidance by sharing, discussing and listening to our friends and families. We have listened to concerns and received encouragement. 
 
We certainly don't have all the answers and never will (life would be so boring:). We don't know what THE.FUTURE holds for us but we welcome <strike>him</strike> it with open arms. Will we run into trouble at some point? Most likely. We have to accept these bumps in the road and move on, learning from the experiences that life throws at us. 
 
We are aware out path is one of thousands of directions people can make. There is no right and wrong. Only THE.FUTURE ahead for all of us. Every day people make billions of little decisions around the planet which ones will affect us - we haven't go a clue. 
 
To answer one challenge down shifting is not about running away from responsibilities. We are not rebels shunning the system. We see it as a way to develop our full potential. 
 
We will have time to work on our personal development, help the kids flourish, participate in community activities. It would be nice to think, if we are seen as useful citizens, that we can offer some part of us to help a few people in THE.FUTURE. 
 
With all that in mind here are some observations on the impacts of our down shifting decision. In particular a look at the implications on social interactions, living arrangements and a change in mindset: 
 
Socially 
 
Being surrounded by friends and colleagues who all work hard to make ends meet can be difficult when talking about downshifting. In our circles we have seen a lot of people where income is there to be spent as a pension plan is in place for THE.FUTURE. It is probably better to not discuss down shifting in some cases... 
 
We are downshifting 
 
The trappings of modern life can be easy to be taken for granted. All available income is spent on items such as a newspaper with a cafe latte and pain au chocolat in a nice comfortable (and usually expensive) café. Jumping in the car to do the food shopping instead of walking. The deserved luxury holiday half way around the world compared to a beach you can actually find much closer to home. 
 
What about the down shifter? Do they spend all their money - no. Do they save and invest - most likely. Do they like showing off status - unlikely. So the contrast between the down shifter and the wage slave is quite wide. You are not seen partaking in all of the trappings of modern life. This throws up several social challenges. 
 
What if you come out of the closet and state your intention to downshift. What would your work college think - "geez this guy has just sent his career down the swanny talking about downshifting". Not considering the fact that as you are down shifting the career can go down the swanny for all you care?   
 
You want to down shift, you are your own master, you are not beholden to your career. You are just approaching work from a different angle. We would like to continue to practice our professions but for only 2-3 days a week and only half the year at that!  
 
What about outside of work? "This family is different, they don't spend much money, they don't have many expensive activities, they aren't part of the club any more". Not to be disingenuous no one has actually said this to us. We have sensed some of these concerns though from some people when they have offered their opinions ("let me give you some unsollicitod advice"). Some "advice" explaining the pitfalls of our decision have been gratefully received and have helped challenge (or fortify) some of our thinking. A few positive individuals have been cheering us on which is appreciated. 
 
We are planning to down shift but are not telling anyone...yet 
 
From a work perspective are managers evaluating people in the following way: Is he ambitious? Does he deserve a pay rise? Does he fit in here? In THE.CONTENDERS opinion this is highly likely so the other route is not to even talk about your plans for the future in work.  
 
You are in work, don't talk about your personal life and keep everything professional! 
 
Sometimes keeping quiet really is the best course of action. If you really want to talk about your plans perhaps an online forum is a better and anonymous place.

Downshifting - Are you mad ??**!!

Time to Think GET.A .LIFE : "I hear THE.CONTENDER is considering getting out of the game . What is he doing? Lack of status, no n...

Downshifting One Year On

Contender 2 Budget, downshifting, early-retirement, financial independence, Happiness, health, Mid Life Crisis, Writing 20:34

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<tr><td class="tr-caption" style="text-align: center;">Enjoying Downshifting - Walking on thin ice in the park and life?</td></tr>
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THE.PAST: "CONTENDER why are you boxing so infrequently and why stop for a couple of years in your prime? What about the perks, the stature of it all? 
 
CONTENDER: "I want to spend some time with the children while they are young, life is no longer chasing the next fight to prove my credentials. I need some time out to look after the family, reflect, relax and keep in shape. 
 
THE.FUTURE: "I'm here! I'm here you yellow bellied son of a *****!" 
 
THE.CONTENDER follows the blog A Good Day To Live and his latest post <a href="http://gooddaytolive.wordpress.com/2013/02/24/downshifters-in-australia-interesting-case-study/" rel="bookmark" title="Permalink to Downshifters in Australia – Interesting Case Study">Downshifters in Australia – Interesting Case Study</a> has inspired him to have a look at his own downshifting in the last year and all of the joys and calamities along the way. What did THE.CONTENDER learn and could these new skills benefit work in the future. All is revealed below: 
 
For newcomers to the blog try here is a post on our Financial Independence journey - <a href="http://www.getintheringwithme.blogspot.co.uk/2012/07/round-5-15-secs-muff-family-financial.html">Family Financial Freedom in 7 Years!</a> and benefits and budgeting to downshift - <a href="http://www.getintheringwithme.blogspot.co.uk/2012/09/father-muff-financial-frugality-case.html">Daddy CONTENDER a Financial Frugality Case Study of Bringing Up Baby</a> 
 
THE CONTENDER is a 36 year old professional dad of 2 children (1 and 4 years old) having downshifted from the corporate world one year ago. This was not because of ill health or any major dislike for the job (there are always going to be some gripes) but because our well laid plans to move to France and exorbitant cost of childcare where we live and which are covered here on this blog. 
 
After working solidly for 13 years and having a strict savings routine for the past 7 years it was time to become very frugal. Could we as a family be better off financially and happier with THE.CONTENDER at home taking over the childcare duties at the end of Mrs CONTENDER's maternity leave? So what has happened in the last year, has downshifting worked for us? 
 
Downshifting the tribe 
 
THE.CONTENDER had at least taken an active role in the upbringing of our eldest child making sure he was around at evenings and weekends while Mrs CONTENDER was on a full year of maternity leave. 
 
When Mrs CONTENDER had to go back to work our child started full time nursery. She did the morning drop off and the contender rushed home before the creche closing time at 6 pm. 
 
With the arrival of the second putting both in nursery was too expensive. We decided to downshift. THE.CONTENDER stepped out of the ring to become the children's full time carer whilst Mrs contender went back to work. 
 
Looking after the Kids 
 
With the perhaps limited experience of looking after the eldest, now both were  the contenders responsibility. A corporate conditioned bloke now full time carer for two young children. What is all that about! Could he hack it? 
 
To ease the transition we had a couple of plans in place. THE.CONTENDER took parental leave so if it was not going well at least the old job was there. Alternatives were a new higher paying job or part time. We had lists of nannies, child minders and nurseries should we need them. 
 
The first few months went smoothly, it was heading into spring, the 6-month old baby slept and rolled around. Our eldest still had a couple of days a week in creche. So good, so far, right? THE.CONTENDER on the other hand was wiped out with.... 
 
Work Withdrawal Syndrome! 
 

No more hour long commute to work in the morning in the car on the motorway through lots of traffic. 
No more predefined routine 
No more boring business conversations 
No more work stress 
No more kissing a*** 
 
THE.CONTENDER knew it it would be coming and it happened - he became sick. A cold and chest infection that lasted for two months. Sometimes he got a cold whilst on holidays after hard stressful work, so this was nothing new. Work withdrawal syndrome - his body was expelling the stress of work and detoxifying his body. 
 
THE.FUTURE: "Got ya! You can't survive without the buzz of the ring" 
 
With the concerns on workload, appraisals and not letting anyone down were lifted from the shoulders he could relax. Actually do something he wanted to do in a weekday afternoon with the little angels in bed for their nap. Result! 
 
After a couple of months we were in spring. THE.CONTENDERS office was now a park instead of a cubicle. Meetings were in the playground instead of a corporate, white, bland boardroom. AND continuous exercise for all! 
 
The need to have a snack or a coffee was gone. Food for the family is now my responsibility to take time to make. It needs to be healthy for the kids - time to get out the kiddie recipe book and beat some eggs with one kid bouncing on my knee with the other wondering what the plug socket is. 
 
Did THE CONTENDER miss <strike>the ring </strike>work? Of course he did (a bit) in those early months. How could he keep the brain ticking over? All those years of hard work and education. Must use it! A strong psychological war was raging in his mind.   
 
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THE.FUTURE: "CONTENDER! what a waste, what are you doing, what about financial security, shiny status symbols? You will loose all of your friends!"</div>
 
So what did THE.CONTENDER experience and learn from with the kids during the year? - please read on:

Downshifting One Year On

Enjoying Downshifting - Walking on thin ice in the park and life? THE.PAST : "CONTENDER why are you boxing so infrequently and why ...

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

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

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<tr><td class="tr-caption" style="text-align: center;">Nice shiny stuff - usually very expensive....</td></tr>
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<h2>
Exposing the ways of the financially Independent Wealthy </h2>
SPEND.A.LOT: "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" 
THE.CONTENDER: "Aren't the beep beep sneakers way expensive? Can you buy them out of your pay check after paying all the bills?" 
 
SPEND.A.LOT "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" 
 
Card issuer (AKA THE.FUTURE) - what a sucker! They never read the small print, interest rate of 2000% he will be my little slave before he knows it. 
 
THE.CONTENDER: Would you hold off your purchases a minute, 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" 
 
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<tr><td class="tr-caption" style="text-align: center;">Millionaire Next Door on Amazon</td></tr>
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"The Millionaire Next Door" by Thomas Stanley and William Danko  exposes the truth that great defense (that is "controlled spending on necessities" compared to consumerism is the road to wealth. 1 Million + copies sold in the US alone speak for itself. This post has: 
<ol>
<li>A short review of the book </li>
<li>THE.CONTENDER concerns for the kids</li>
<li>A look at putting some of the recommendations of the book into practice</li>
</ol>
 
"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: 
 
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Frugality + Budgeting + Investing + Planning + Hard Work </div>
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= Financial Independence</div>
 
The Book 
  
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. 
 
Spendthrift high income families generally: 
<ol>
<li>Care about status and keeping up with the Jones</li>
<li>Spend a lot on expensive consumer goods (Cars, boats, clothes, blenders, cappucino makers and the like)</li>
<li>Do not have a household annual budget </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>
Compare this to millionaires 
<ol>
<li>They save at least 15% of their income</li>
<li>Their income is a very small part of their total wealth</li>
<li>A significant amount own their own business, leverage their contacts to get good deals and business passed onto them.</li>
<li>Are humble in front of their employes and neighbors showing no signs of their real wealth</li>
<li>The are fully satisfied with their humble living and have no intention to change and turn into a consumer. They have clearly defined life goals.</li>
</ol>
It is a fascinating look into the lives of the wealthy with loads of case studies. 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 recommend the book highly enough. 
 
Please read on for the  impact on the kids, FI state of mind what would the Millionaire Next Door ask himself?

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)