January 2014 | FISH | Financial Independence Seeking Happiness

Financial Independence Options

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

<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>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 numbers." 
 
Mummy Bear: "Oh daddy bear you are so cuddly when you talk tough" 
 
Baby Bear: "I want a games station, mobile computer, princess bike and trust fund...Now!" 
 
 
 
 This post is about a few hypothetical scenarios entered into the NEWLY UPDATED financial time line planner. 
 
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: 
<ul>
<li>Mortgage calculations</li>
<li>Debt repayments</li>
<li>Improved graphics</li>
<li>Financial scenarios</li>
</ul>
Here we are going to look at three different type of people and see how the timeline works for them: 
<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>
Party on! CEO, Playboy, Sports car, Mansion, Hawaii 
 
Our
first example is the one THE.CoNTeNDeR 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 THE.CoNTeNDeR's financial mindset. 
 
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. 
 
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<tr><td class="tr-caption" style="text-align: center;">CLICK ON PICTURE !</td></tr>
</tbody></table>

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...

Phi, Hero and Forecast

Contender 2 Black Swan, Critical Thinking, downshifting, Early Retirement, financial freedom, financial independence, Investing 19:50

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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj31ms4DxaBN-Ndjp8N8378bEbc7byXzydp-uyLNDT-43Vymm6dqthY7hFy1Q5emohfZKEgyJ2MPO4kt3d5FjSV6FPZo90hWdraQIng22S8glTtacexVUiSEJB-hFbxw8PFh4d85hoQBAP8/s1600/DSC_0003.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj31ms4DxaBN-Ndjp8N8378bEbc7byXzydp-uyLNDT-43Vymm6dqthY7hFy1Q5emohfZKEgyJ2MPO4kt3d5FjSV6FPZo90hWdraQIng22S8glTtacexVUiSEJB-hFbxw8PFh4d85hoQBAP8/s1600/DSC_0003.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">What's THE.FuTuRe Forecast?</td></tr>
</tbody></table>
 
THE.FuTuRe: "I took you to the cleaners last year. I ran circles around you, give up, give in. It's a slaves life for you my lad. Live for today your past is gone and forget about tomorrow." THE.PReSeNT "Just let me look after you!" 
 
THE.CoNTeNDeR: "You're a happy bunch aren't you? Bog off! I can learn from the past to prevent mistakes in the future. I actually know of a few useful guys that can help me out." 
 
Forecasting is an inherently difficult and thankless task. Accepting that you will be wrong to a degree is the first step. Secondly you need to refer to the past to help to predict the future. Finally add in knowledge you know today and plans for THE.FuTuRe. 
 
Being partially right is better than being completely wrong. 
 
THE.CoNTeNDeR had a go at product sales #forecasting and can attest to the fact, through the use of clever mathematics and experience you can gain superior results. We want to think bigger though - what could happen in real life? Thankfully there are some people out there that specialise in the big picture in particular investment cycles and geopolitical events. 
<blockquote class="tr_bq">
“Plan too far ahead and nature will seem to resist.” - Ancient Chinese proverb  </blockquote>
We live in a mind boggling, complex, constantly changing world and our understanding of it is still in its infancy. In this post we are going to look at  
<ul>
<li>How we humans are using patterns and cycles to forecast THE.FuTuRe. In particular Martin Armstrong's Confidence, Model, Nicolai Krondratieff's inter-generational cycles and Gerald Celente's Trend Journal.</li>
<li>Contemplate inter-generational impacts for the Boomer, Nomad, Hero and Artist generations. </li>
<li>A look at an investing approach, for the aspiring Financial Independent Person that is built to ride the waves of time....Harry Brownes Permanent Portfolio. </li>
</ul>
Phi, Cycles and the Nano Second Investing World we Live in 
 
Phi is represented throughout nature and is very evident in the cycle of time, plant structures and even human nature. Number patterns are everywhere have a look at the <a href="http://www.amazon.co.uk/gp/product/190426347X/ref=as_li_tf_tl?ie=UTF8&camp=1634&creative=6738&creativeASIN=190426347X&linkCode=as2&tag=thecontfinain-21" id="static_txt_preview" target="_blank">Golden Section</a> for instance. We cannot ultimately fight nature - fundamentals win out eventually. We still believe we can geo-engineer our climate yet we cannot even get a weather forecast right! 
 
If nature does not have enough on its plate here comes MAN. We have introduced our logic to the real world which has huge implications on how we interact with the world. 
 
Just have a look at technical trading and the adornment of <a href="http://moneyweek.com/spread-betting-video-tutorial-elliott-wave-theory-13701/" target="_blank">Fibonacci levels Tramline analysis and Elliot Wave Theory</a>. With so many people using these "tools" the herd follow numerical trends against all reality for the underlining investment. Wall street has the power to wipe out entire industries. Often shipping them abroad where human rights and environmental controls are less strict. These beliefs are powerful forces that cannot be overlooked. 
 
We now have added HFT algorithms into the mix. Computers bash the price up or down based on more man logic to make huge profits on the smallest differences in price. MAN LOGIC is prone to herd mentality and emotions so these HFT can all feed on each other and cause ridiculous price distortions. 
 
How long until we introduce artificial intelligence to the computers to make the situation even worse. What common sense we do have will be removed. Perhaps we will have a Terminator Esq Financial Judgement Day. Computers deciding that destroying the entire financial system will lead to the most profit taking the real world with it? It is very strange that HFT is allowed......

Phi, Hero and Forecast

What's THE.FuTuRe Forecast? THE.FuTuRe: " I took you to the cleaners last year. I ran circles around you, give up, give in. It...

Learning from THE.PaST

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

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<tr><td class="tr-caption" style="text-align: center;">A cold start to the year?</td></tr>
</tbody></table>
THE.FuTuRe: "CHUMP you still there? Learn from me and THE.NoW forget THE.PaST he is a has been, now look forward he can't teach you anything. THE.FuTuRe is mine all mine and it WILL be different than THE.PaST" 
 
CoNTeNDeR: "You are preaching to the converted, mate, but you forget one thing THE.FuTuRE may be different but it rhymes with THE.PaST and.....we are not having you mess up our enjoyment in THE.NoW" 
*CHUMP - Fool, loser, muppet, victim of THE.FuTuRe, loner, weirdo, odd, strange, picked on OR WINNER - Happy, healthy and challenged. 
 
TRiBe 2013 - Happiness and Investing...! 
 
We understand that money isn't everything but it alows us to do things that we want that give us..... happiness. It is damn nice but what is it how do we know? 
To help appreciate it (happiness) don't you need to experience its opposite as well? Can being rich in money mask real happiness by shielding you from real life
 experiences. 
 
So did the TRiBE have a rounded year.....with rich experiences both good and bad - even if we did not set out on that course - lets take a look:  
 
We really did have a roller coaster of a year. The sadness of a bereavement in the family. Lots of family illness 
in the form of all kinds of nasty bugs. Scarlet Fever, Schingles, 
Bronchitis, Chicken Pox and topped off with a nice bout of Gastro. That sure made us un-happy. Can we just mark that one down as couldn't do anything about due to the joys of having young kids and living in a large city. 
 
MRS.C
 left work followed with the normal withdrawal symptoms. From personal 
experience I actually think it is nicer to be sacked / made redundant than resign. It 
gets rid of the what in the hell am I resigning for / doing question. 
 
Bang! Suddenly the lack of work 
(job) = an empty void that you feel the need to fill back up OR was it too filled in the first place? 
 
We 
were very fortunate to be able to make these choices. At least our 
actions left a job behind for someone else to take up the financial 
independence mantra. 
 
So we packed up our belongings and 
gave away the rest then moved to another country. Fun, exciting and 
exhausting. 
 
This place is so different. How do you settle into a completely different culture as well as adapting to a complete change to family life (both parents at home and we have managed not to divorce yet). 
 
Yes family life. No more "shift 
family member from A to B refill on the way then into bed to recharge the 
batteries". THE.FuTuRe: "Fill the void! Do it now you must be busy all that free time together would drive you mad" 
 
Is he right what are we doing to fill the void - please read on for an investment review and some key learning's around our downshifting move to France from the year that was 2013

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...

The Ride of a Lifetime

Contender 0 Black Swan, Critical Thinking, Dividends, Gold, Inflation, Oil, Saving 18:10

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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguFA8PyDmpou-eLz7uXRny-Hts5fkz36_uwauIsleRrSNOCtQH7x4HbWbKFNmYlGoZv-TPXNfG7Cznows4dhMgLo1jiEYXsEoLbaM4y9ZsiOazizuvuBUDm228nYiXi5KrC82uryK0w_A4/s1600/DSC_0022.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguFA8PyDmpou-eLz7uXRny-Hts5fkz36_uwauIsleRrSNOCtQH7x4HbWbKFNmYlGoZv-TPXNfG7Cznows4dhMgLo1jiEYXsEoLbaM4y9ZsiOazizuvuBUDm228nYiXi5KrC82uryK0w_A4/s320/DSC_0022.JPG" width="320"></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Our Fire - A warm fuzzy feeling what about 2013?</td></tr>
</tbody></table>
*CHUMP - Fool, loser, muppet, victim of THE.FuTuRe, loner, weirdo, odd, strange, picked on. 
 
*WINNER - Happy, healthy and challenged. 
 
THE.FuTuRe: "Hey CoNTeNDeR you CHUMP, Did 2013 work out as you planned it? Of course it did not. Why did you even try? You know I have lots of unpredictable surprises for you so don't try to hide. Come out of the woodwork and GetInTheRingWithMe!" 
 
CoNTeNDeR: "You fight dirty! Sure I am up for it just like every year. Our TRiBe has a plan for you.... we know you will mess some of it up just look at some of last years silliness. Some people WON" 
 
Everyone has his/her own agenda. The rich want to stay rich, the poor want to get ahead, the politicians want to stay in power, the greens want to save the planet.... Every butterfly flap of a wing could cause a hurricane. 
 
There is no knowing what THE.FuTuRe holds, let alone the complexities of an individual in a specific place at a specific time - ain't it great! 
 
Rich and lose it all, poor and win the lottery, a survivalist without a match, a capitalist going long in a bear market, the gift of a new borne child. 
 
Today a brief look at 2013 which will have a follow up post on what, if anything, THE.TRiBe has learnt from it. 
 
Unique, unfathomable, awesome 2013 
 
Well, what a year 2013 was, just like THE.PaST. Unpredictable. Perhaps more unpredictable than ever. 
 
Great gains in US stocks with modest gains in the UK and Europe. Why amazing well company earnings are not exactly up 28% like the stock market. I wish I could have a business that gains 28% a year. 
 
Energy did ok - if you were invested in the US shale oil boom. As for how long the drilling of vast acres of the US will yield results is another question? Be pessimistic for 2020 or oil forever see <a href="http://srsroccoreport.com/" target="_blank">SRSrocco.com</a> for some analysis. 
 
Defensive stocks in the UK were on a blinder at the start of the year and lost out to risk on stocks later. Twitter, Facebook, Bitcoin get on the free money gravy train of the cyber economy. dot.com boom and prosperity is coming back. 
 
In the mean time we thought staying at home on the computer was a safe place to be. Yet this year we are told we are being watched and they have software to turn on your web camera to see what you are up to. Orwellian indeed.

The Ride of a Lifetime

Our Fire - A warm fuzzy feeling what about 2013? *CHUMP - Fool, loser, muppet, victim of THE.FuTuRe, loner, weirdo, odd, strange, picked...

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

Financial Independence Options

Phi, Hero and Forecast

Learning from THE.PaST

The Ride of a Lifetime

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