FISH | Financial Independence Seeking Happiness

Risk Versus Reward

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

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Is THE.CONTENDER risking a knockout blow? 
 
 
THE.CONTENDER thought he would write a post on perceived Risk versus Reward when investing. THE.CONTENDER compared the THE.CONTENDER strategy against a couple of very successful savvy bloggers. THE.CONTENDER 's investment plan can be summarised in one simple statement "save as much as possible, in stocks that have a high risk \ reward profile early in life then choose lower risk stocks later". That was the easy part. The next part was devising a strategy to max out the strategy for early financial freedom. The THE.CONTENDER approach is covered in more detail in "<a href="http://getintheringwithme.blogspot.co.uk/2012/07/round-5-156s-investment-challenges.html" target="_blank">Investment Challenges</a>". Here are links to a few articles from the bloggers THE.CONTENDER was talking about earlier: 
 
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 <a href="http://jlcollinsnh.wordpress.com/" target="_blank">jlcollinsnh</a> </div>
<ol>
<li><a href="http://jlcollinsnh.wordpress.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/" target="_blank">Stocks part vi portfolio ideas to build and keep your wealth</a> </li>
<li><a href="http://jlcollinsnh.wordpress.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/" target="_blank">How I failed my daughter and a simple path to wealth</a></li>
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<a href="http://www.mrmoneymustache.com/" target="_blank">Mr Money Mustache</a> 
 
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<li><a href="http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/" target="_blank">How to make money in the stock market</a> </li>
<li><a href="http://www.mrmoneymustache.com/2011/06/07/where-should-i-invest-my-short-term-stash/" target="_blank">Where should I invest my short term stash?</a> </li>
<li><a href="http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/" target="_blank">A Brief History of the ‘Stash: How we Saved from Zero to Retirement in Nine Year</a></li>
</ol>
(Other early financial freedom bloggers: <a href="http://gooddaytolive.wordpress.com/" target="_blank">A Good Day to Live</a>, <a href="http://www.bravenewlife.com/" target="_blank">Brave New Life</a> and <a href="http://earlyretirementextreme.com/" target="_blank">Early Retirement Extreme</a>) 
 
<a href="http://getintheringwithme.blogspot.co.uk/p/muff-tools-and-check-lists.html" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;" target="_blank"><img alt="" border="0" height="161" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2_tJJBfdEcjYj8hSe6G74uOkYPZdhtdvUjHlD66iDSU-DDkHu3ga_HfgHks_i1d_8T14tBYvTCra_s6KmbaqeiUZkh0TVDkWPeTO1BasqeCXSrNbM009OsiGvcohCmAN1cKCIvm1mpU_e/s200/Muff+Tool+Kit+v6.jpg" title="PLANNING TOOLS AND CHECKLISTS" width="200"></a>First, both of these guys have made it, are financially free and are still able to save and invest each month. Both guys built significant savings through very hard work and dedication in their employment and investing decisions. Hats off to both of them. This blog highly recommends working through their sites for insights on finance and life. 
 
Next, let's start a comparison of the different strategies:

Risk Versus Reward

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

PLAN DO CHECK ACT Life Objectives

Contender 0 Early Retirement, Life, Planning, Toolkit 19:52

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THE.FUTURE: "CONTENDER you are wasting your life your time has come to relinquish your crown and come with me!"   
THE.CONTENDER : "I am only 27 I can change my ways! "   
THE.FUTURE: you have one year to change your destructive ways. I will return at the stroke of midnight on New Years Eve! 
 
What did THE.CONTENDER want out of life? Where to start? First THE.CONTENDER needed understand what he was good at what did he enjoy. Secondly what was THE.CONTENDER going to do about it! 
 
This post is going to look at   
1. How THE.CONTENDER started to plan for THE FUTURE   
2. How the THE.CONTENDER tribe use the PLAN DO CHECK ACT life planning process on a monthly basis using a spreadsheet, whiteboard and a calendar. 
 
THE.CONTENDER self analysis - what needed to change for the better 
 
In looking for a place in society and work THE.CONTENDER had to find something he was good at. THE.CONTENDER was never going to excel at music so no there was no point learning the saxophone because it is COOL to be plain bad? Would this be a good use of my time? THE.CONTENDER must work on skills and areas he is good at or that help achieve early retirement and independence. 
 
Firstly  general traits; 1) THE.CONTENDER likes making things but dislikes finishing them to perfection (another reason not to be a musician:) 2) THE.CONTENDER 's personality is unique and what makes me but can be too abrupt and willing to take the lead. So there are areas of opportunity and other areas that need some work on. 
 
Core skills - why THE.CONTENDER is an Engineer 
 
THE.CONTENDER is a thirty five year old and found himself as an engineer by trade. As a result he likes to be practical and put things into action (a key part of this blog). Is he?: 
<ol>
<ol>
<li>creative</li>
<li>problem solver</li>
<li>analytical</li>
<li>have an end result in the real world</li>
<li>enjoy what I do</li>
</ol>
</ol>
THE.CONTENDER has always been a numbers guy and interested in sciences. THE.CONTENDER is not going to be the following though.... 
<ol>
<li>Going to be a famous writer or sports star (really only a very small % of society excel in these areas)</li>
<li>Pander to people's every needs and be the best shoulder for someone to cry on. THE.CONTENDER is a direct person who wants results. THE.CONTENDER wants to get things done which can come across as forceful and sometimes insensitive.</li>
<li>Complete things (THE.CONTENDER is a firm believer in the 80:20 rule 80% of results from 20% of the effort). Perfection produces diminishing returns and you only have a finite time on this planet (saxophone player is definitely out for me) . This is to the annoyance of Mrs C who believes in 120% all the time. She is coming around to my thinking now that we have 2 kids. A rounded approach to bringing them up instead of trying for the perceived best of everything such as enrollment of the 3 year old in every extra activity we come across. And no we are not going to make them learn the saxophone.</li>
</ol>
THE.CONTENDER must to carefully consider the use of his skills in the future planning. Can these skills be used on this blog effectively but can THE.CONTENDER make the blog readable can he overcome some of his weaknesses?  
 
Improving interpersonal and skills 
 
Lots of training has been taken to improve interpersonal skills. Here are some of the key areas that needed refinement: 
<ol>
<li>Listening to others and trying to understand their point of view (Professional training and <a href="http://www.amazon.co.uk/NLP-Workbook-practical-achieving-results/dp/0007100035/ref=sr_1_6?s=books&ie=UTF8&qid=1345560271&sr=1-6" target="_blank">NLP Workbook</a> and <a href="http://www.amazon.co.uk/Listening-Self-Teaching-Guide-Wiley-Guides/dp/0471015873/ref=sr_1_7?s=books&ie=UTF8&qid=1345560369&sr=1-7" target="_blank">Listening - a self Teaching Guide</a> books)</li>
<li>Simply my presentations (<a href="http://www.communispond.com/" target="_blank">Communispond professional training - click here for their site and blog)</a>)</li>
<li>Thinking about how other people would use any solutions that I have developed so that they buy into rather than reject them.</li>
</ol>
THE.CONTENDER was and is missing other skills. THE.CONTENDER needed a way to track and improve these skills and make sure he had life goals and objectives. 
 
Creating a life plan using PLAN DO CHECK ACT 
 
Using a planning and reviewing technique - PLAN DO CHECK ACT THE.CONTENDER got to work on a life plan (for more information on planning in business a very good book is:  <a href="http://www.amazon.co.uk/Project-Workout-Ultimate-Programme-Management/dp/0273723898/ref=sr_1_1?s=books&ie=UTF8&qid=1345560741&sr=1-1" target="_blank">Project Workout</a>): 
 
1. Plan 
       Listed my strengths and weaknesses 
       Chose the areas I want to work on 
       Listed my desires and dreams in life 
2. Do 
        Created goals and objectives 
        Made sure goals are SMART Specific that can be measured it is achievable, realistic and timed 
3. Check 
       Checked the objective are aligned to needs and plans for happiness 
4. Act 
       Cleaned up the goals and objectives 
       Created actions for each goal and track progress 
 
This keeps on changing due to our circumstances. Becoming a dad 
threw a curve ball at me - it is the most astounding of all of the "new" 
challenges I had to consider. Lets have a look at each of the 4 parts of the planning process:

PLAN DO CHECK ACT Life Objectives

THE.FUTURE : "CONTENDER you are wasting your life your time has come to relinquish your crown and come with me!" THE.CONTENDE...

CALP! Where to Live in Early Retirement?

Contender 0 Early Retirement, frugality, Happiness, Life, Planning 20:46

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLtmQA2I2C612gK5F9lKW7uTQ6ojp-1jBXWR6rRYuxETEcAZ_jmri6HxRDwbj5efJ0Jozg1qb3H6utZlRPi5vxgddLeVV23qh_s_OXpITLr9k9lxoOIITfMoLc3hIZlGykTpN-w4Yx9LCf/s1600/BrightSideOfLife.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="209" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLtmQA2I2C612gK5F9lKW7uTQ6ojp-1jBXWR6rRYuxETEcAZ_jmri6HxRDwbj5efJ0Jozg1qb3H6utZlRPi5vxgddLeVV23qh_s_OXpITLr9k9lxoOIITfMoLc3hIZlGykTpN-w4Yx9LCf/s320/BrightSideOfLife.jpg" width="320"></a>Our tribe has a financial freedom plan in the CPH (Contender Plan for Happiness). It is one thing to be financially free but what are we going to do with it? We have developed our own CALP (Contender Awesome Life Plan). So our CPH consists of the CFFP (<a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">Contender Financial Freedom Planner</a>) and CALP :) 
 
This post is how we have chosen (with a scorecard posted below) where we want to live considering education for the kids, community, food, climate etc. Read on to find out why the French Countryside (but not too far from the amenities of a city) are right for us at this point in time. 
 
Our goals early in life were like any other young couple, have fun travel and socialise. We were discussing some longer term plans but we too busy in the NOW having FUN. We were testing the water you could say. Would we like to get married have kids etc. Work was fulfilling but what were our long term aims and how are we going to get there? 
 
<iframe allowfullscreen="allowfullscreen" frameborder="0" height="266" mozallowfullscreen="mozallowfullscreen" src="https://www.youtube.com/embed/A3oIiH7BLmg?feature=player_embedded" webkitallowfullscreen="webkitallowfullscreen" width="320"></iframe>At the time 7 years ago we were in no position to make more radical decisions about our careers but after 4 years of saving we started to see options. With the arrival of our first child my wife had a year off on maternity leave. During this time the advantages for our child were clear. My wife had time to recover and enjoy quality time with our daughter. 
 
Management books had made way for baby books and as a Dad I had started reading up on work life balance. We needed a blueprint for the next few years. Was career a key driver for us or something different? We decided we needed some balance like anything in life. We needed a new definition for what is a career and what is achievement in life.

CALP! Where to Live in Early Retirement?

Our tribe has a financial freedom plan in the CPH ( C ontender P lan for H appiness). It is one thing to be financially free but what ar...

Early Retirement with a Mortgage?

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

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGW1ourjU12rLl-4E1WbRT5aCEFfsNtzt-DKDD9bxJqPo4d721fInQuPYBN9AfixFQp_pFVukAGygJNPnj4puiWrE51-YeSBWVLPUQsihys4XOpfVNqMZrhnkfFoPOGi6_YwCtnkNn1Q6s/s1600/House.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/AVvXsEjGW1ourjU12rLl-4E1WbRT5aCEFfsNtzt-DKDD9bxJqPo4d721fInQuPYBN9AfixFQp_pFVukAGygJNPnj4puiWrE51-YeSBWVLPUQsihys4XOpfVNqMZrhnkfFoPOGi6_YwCtnkNn1Q6s/s320/House.jpg" width="320"></a>How do you get to Early Retirement as quickly as possible and buy a property outright? Here in the UK we have an in-built fascination with owning your own 
property. Continental Europeans, on the other hand, tend to either stay at home 
for an extended period of time or rent. THE.CONTENDER has been interested in this 
debate for some time and the impact it would have on our financial 
freedom plans. In order to illustrate the differences I have posted an 
Open Office spreadsheet with some hypothetical scenarios. You can open the <a href="http://getintheringwithme.blogspot.com/p/muff-tools-and-check-lists.html" target="_blank">spreadsheet</a> in the financial section of the toolkit and have a play with the parameters. It contains: 
<ol>
<li>An example of when getting a mortgage is beneficial</li>
<li>An example when renting could be a good choice</li>
<li>An example of early retirement </li>
</ol>
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You can play with the parameters for savings, property cost, rental rates, mortgage, income and inflation expectations for your unique circumstances.

Early Retirement with a Mortgage?

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

Investment Challenges

Contender 0 Dividends, DRIP, Ethical, Inflation, Risk, Saving 15:02

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<h2>
One Black Eye Too Many?</h2>
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Today I would like to discuss some CIT (Contender Investment Themes) and challenges faced today. Investing at the time of writing is a mine field. We are in one of the most volatile financial periods in recent years. An economic crisis is ongoing in the western world while concerns about sustainable growth in emerging markets are frequent in the financial press. 
 
<h3>
Managing Inflation</h3>
 
Inflation is most often described as prices are going up because materials and labor etc are getting more expensive.... Really as I see it this is a fallacy - money is actually loosing its purchasing power as there is more of it. 
 
Like everything in life we have supply and demand balances. The more abundant something is the less it is worth to the consumer. The same is true of the current version of "money" we have in the world. We are creating vast amounts of money - mainly electronically. The more there is, the value of each unit decreases over time. In the UK I have seen the cost of a loaf of bread increase by 2.5 times over 20 years but if anything we have more global grain supply now. 
 
Inflation is a real concern in the MIT list. It affects our investment choices, pension allocation and impacts our ability to build and protect our savings. Inflation is like a stealth tax - legal theft. 
 
It is of utmost importance to plan for a significant rate of inflation and make sure you have assets that compensate for any increase in prices \ decrease in the value of the fiat currency in the future. Examples of investments that could grow at the same rate if not faster than inflation: 
 
1. Companies with strong brands, advanced distribution and manufacturing networks \ economies of scale can raise prices in line or above inflation (such as consumer goods companies) 
2. Energy and raw material producers 
3. Stable currencies and precious metals (scarcity value) 
4. Agriculture (we are not creating any more land on the planet) 
 
A note on CASH and GOVERNMENT BONDS. Cash and bonds are deemed safe investments. Bonds will pay some interest and you can buy inflation protected products. In MIT I consider these investments \ savings as dry powder for opportunities when there is "blood on the canvass": 
<blockquote class="tr_bq">
"I am not so much concerned with the return on capital as I am with the return of capital." - Will Rodgers </blockquote>
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 </h3>

Investment Challenges

One Black Eye Too Many? Today I would like to discuss some CIT ( C ontender I nvestment T hemes) and challenges faced today. Invest...

10 Rules of Extreme Saving

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

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

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

10 Rules of Extreme Saving

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

Financial Independence in 7 Years!

Contender 2 Finance, Freedom, Saving, Toolkit 08:17

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What an idea we had in 2005: could our little tribe be financially free in 7 years! Feelings of crazyness, being excited yet a sense of daunt and dizzyness all at the same time. 
 
As I update this in early 2014 we consider ourselves financially free. All those emotions followed us along the way on what has been a very bumpy rollercoster.   
 
Here is the story of how our little tribe ended up financially independent 7 years after the inital thoughts about or finances and what really made us happy.  
 
Finding Our Feet 
 
Financial independence was never spoke of in our families our our up bringing. Both my wife and I had different but comfortable up bringing. 
 
Me, my sister and mum getting on as a single parent family in the SE England Sussex countryside. We lived in a little cottage in an idyllic village surrounded by field where we ran free, collected tadpoles and rolled in the mud. We moved closer to family in a South Wales mining village surrounded by hard working families. Great times and fond memories. Money was tight but we did not want for anything. 
 
I excelled through education culminating in an engineering degree from a prestigious red brick university. Fun times were had, reckless spending and childish, stupid and regrettable pranks. Did I actually learn anything? I certainly did not have a clear direction to my life, no mentor to knock some sense into me. I was just making it up as I went along. 
 
My first "proper" job was a sea of figures, terms and diagrams. People dressed in suits jockeying for the top jobs. Still no direction. What is this career thing all about? Why does that manger make things so difficult for our department and what is the point of a deadline? 
 
Time for a change of company. A bigger beast altogether. Even more dog eat dog, downsizing the workforce, appraisals and feedback. B- my son - must do better. It was all so serious and deadlines had to be met.  
 
These early experiences shaped me. The desire to run in the wilds. Knowing that I should respect  money and save for retirement. I had to get organised, grow up and be more responsible, tame the silliness but keep some of the fun. 
 
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Our Financial independence Story</div>
  
Our Environment Shaped our thoughts 
 
Our local environments have always shaped our thoughts and ideas. Fortunately we have lived in the countryside, villages, towns and mega cities. We have worked in numerous countries and cultures and visited ancient ruins and tropical beaches. 
 
At the time In 2005 my then to be wife and I moved in together in the most expensive city in the world London. 
 
We had bright lights, amazing attractions, comfortable houses and plenty of entertainment. Not forgetting the UK's status as a major transport hub for all those exciting getaways. What a great place to live right? 
 
Especially when you have money. I had just paid off my student and car loans $30K. I was finally looking at a positive balance sheet for the first time in 10 years. Our living costs were reduced as we shared the bills. We had money to spend! 
 
<iframe allowfullscreen="allowfullscreen" frameborder="0" height="266" mozallowfullscreen="mozallowfullscreen" src="https://www.youtube.com/embed/iMUiwTubYu0?feature=player_embedded" webkitallowfullscreen="webkitallowfullscreen" width="320"></iframe>We were renting a modest one bedroom apartment in a Victorian house. It had a huge garden with a beautiful blossoming cherry tree. It was located in an affluent area with great restaurant's, pubs and shops. 
 
Each weekend we would go out to try different cuisines. Visit sparking, thumping night clubs. Entertain our selves at the cinemas and have friends around for meals and drinks before hitting the tiles once more. 
 
Frequently we would take cheap city breaks around Europe. Lots of income was spent and little was saved. 
 
Thankfully we lived within our means and avoided all forms of debt. Our spending was controlled through a joint bank account and a budget. 
 
Changing Direction 
 
My wife and I sat down one cold dark February night in 2005 to consider our future. Sure we were having a great time but something was missing. We talked about family, where we wanted to live what type of life we wanted, family, kids and seeking some tranquillity in our lives. 
 
We had both heard about downshifting. Perhaps we could work less and live more simply 
but we needed to get rich first! Let's invest. 
 
We had no property to speak of so did not consider real estate investing. We had good jobs so did not see the need to setup our own business so for us the most natural place to start was the great casino of the stock market. 
 
Unfortunately
 no one tells you how to invest. We subscribed to a few stock picking 
news letters and rolled the dice. The result was not pretty. Too much, 
too soon and on too few. 
 
More Money than Sense 
 
Bonus Time more money to invest and spend! We wanted to buy a house - house prices always go up right and we were missing out. Well that would have to wait as London housing was so expensive. Back to the stock market. 
 
In London we were surrounded by stories of the ridiculous bonus culture of the city with everyone getting filthy rich. Warren Buffets latest stock winner. Google shares shooting to the moon. This  encouraged us to plough everything we had saved and we were earning back into shares.  
 
TFD Tribe Financial Disasters ensued. Penny shares promising the moon going to zero, the latest and greatest mutual fund idea languishing in the gutter. What was I doing wrong? 
 
Fortunately Mrs C on the other hand had taken advice from a financial adviser and her savings were growing steadily. 
 
The route to riches was through 10 bagger shares though. Instant riches. Bring it on. One was bound to hit the jackpot soon.....learn from my mistakes the next pick will be a winner. Oops!! 
 
Hindsight 
 
In hindsight I was lured by the financial press (magazines, newsletters and the mainstream financial media). It was a hard learned lesson. Luckily it was out of the way early in my saving and investment career :o) I stated to save more carefully from then on. Here is the TFD list of losses :o( 
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<li>The penny stock miners - total loss in the region of £5,000</li>
<li>The New Technology Energy Stock £4,000</li>
<li>Buying Europe just as Europe goes down the pan £3,000</li>
<li>A consumer goods technology stock - wiped out £500</li>
<li>Green energy bio fuel stock - worth 1/100th of the purchase price another £500</li>
</ol>
Stock picking for 10 bagger gains gave way to mutual funds and large cap stocks who paid dividends..... 
 
These
 dividends grew and grew. Slowly our modest passive income goals looked 
feasible, but how much did we need and what were we going to do with it? 
 
In the Meantime - We must get on the property ladder quick! 
 
We had amassed enough money for a deposit on a home by 2007. A home is a much better investment right? 
 
We looked around and were perplexed by extremely high prices. Property was in a huge boom in London. We were looking at huge mortgages on what would have been a shoebox apartment. 
 
This did not make sense to us as we could rent a much larger property (a house with a garden) at less than the interest payments on a mortgage. Additionally we did not have to spend money on decorating or repair costs, building insurance or expensive conversions let alone porter and leisure fees. 
 
Renting it was, even though there was peer pressure to buy. 
 
Please read on for the financial crisis and light on the other side

Financial Independence in 7 Years!

What an idea we had in 2005: could our little tribe be financially free in 7 years! Feelings of crazyness, being excited yet a sense...

Free Tools

Contender 0 Education, Finance, Investing, Planning, Saving, Toolkit 12:46

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Free Toolkit Manifesto - Provide simple, accessible, customizable planning tools</h2>
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Free CPT's (<a href="http://getintheringwithme.blogspot.co.uk/p/muff-tools-and-check-lists.html" target="_blank">Contender Planning Tools</a>) that cover radical solutions to life's challenges are a key part of this blog. A blog post will accompany each tool and a how to use guide. Is this a new concept - definitely not. My objective may be different though : "Provide, free, clear simple, very user friendly planning tools with the specific goal of the Pursuit of Happiness". I know this is a very ambitious, difficult, complex if not impossible task but I sincerely hope it will be a fun collaborative effort and interesting to see where it ends up. </div>
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All the great things are simple, and many can be expressed in a single word: freedom, justice, honor, duty, mercy, hope.
 
Winston Churchill
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Qualified???? - CLSAD (Contender Life Skills and Disasters) 
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How have I learnt how to plan \ create ad-hock tools? 12 years work in process design has laid a solid foundation. I have found that business tools are readily transferable into social life. The challenge is to simplify and adapt their purpose. 
 
I have read a huge number of business books gone on numerous training courses. A vast amount of information and too much to remember and apply. I applied, succeeded and messed up in places but then adapted and ultimately worked hard to get results in work. The same is true in my personal life and a <a href="http://getintheringwithme.blogspot.co.uk/2012/07/round-5-15-secs-muff-family-financial.html" target="_blank">later post</a> covers some of the bad decisions the Tribe have learnt from. 
 
Does this qualify me to have a go at a bunch of tools for life? Definitely not but someones got to do it. I am willing to have a go, try them out in real life situations to find out 
 
Tool Contents - CBBT (Contender Big Bag of Tricks)  
 
CBBT includes planning, strategy building, risk planning, tracking, calculations, graphs and diagrams. They cover the key points from the start of the planning process to the final long term goal (it is almost always a good idea to state your long term goal and work backwards). 
 
I have found that having a plan that you can update easily with checks \ action lists is extremely important. This makes sure you do not miss the obvious and you stay on track. A plan helps you to be realistic with yourself. A regularly reviewed plan gives you a sense of control and comfort that you are going in the right direction. If you are off track you can adapt and not panic onto bad decisions. </div>
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Free Tools

Free Toolkit Manifesto - Provide simple, accessible, customizable planning tools Free CPT 's ( C ontender P lanning T ools )...

Four Key Planning Rules

Contender 0 Compound Interest, Critical Thinking, Planning, Risk, Rules, Saving 21:44

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<h2>
Pulling himself off the floor and onto the ropes - Learning to fight back</h2>
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THE.CONTENDER has always had a go at work and life challenges and took some knocks along the way. THE.CONTENDER never liked failure and generally took failure to heart (still the case). Perhaps that was because THE.CONTENDER was never really taught that failure was actually a really good thing. Learning from mistakes is a gift and structured feedback is invaluable (but don't repeat the mistake again!). 
 
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THE.CONTENDER has learned a some very important lessons and skills from my failure in work that are invaluable in my personal life. </div>
 
Interestingly, in my corporate career, having a go was not really encouraged. Generally it was do as your are told and cover your back. THE.CONTENDER found that having a go in work came at a cost to my career. Steady as she goes and take you time to set expectations. Expectations were everything. 
 
THE.CONTENDER may have been late on a few projects but why the demonisation of the late delivery? The new process THE.CONTENDER had devised off his own back was saving significant time and money. It was all politics, egos and control tactics. As a result the majority of people kept their heads down and just wanted to go home each day. Is this true in other workplaces? 
 
Failure at a young age should be embraced and encouraged. With extra coaching expectations can be managed while problem solving and common sense nurtured. THE.CONTENDER's mistakes in the work environment could have been "learnt" earlier. Here are some of them: 
 
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<li>Keep it simple stupid -  being well educated I expected other people to be able to understand complex issues as well.</li>
<li>Setting expectations and planning ahead - being over optimistic can cause problems come up with a plan make sure it is realistic (criticize it) make sure if it is going wrong you are open and address the issues early.</li>
<li>Falling for the latest gimmick - this can being sold some thing you don't need at great cost and time to making bad choices (where to live, choice of job, latest investment mania)</li>
<li>Is there another way to get this done faster what are the risks if we go down this route and how do we manage them?</li>
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This blog is my attempt to take some of the "work" tools and skills and adapt them to life in general. Here are the 4 core principles of this blog which may well expand with time. 
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Four Key Planning Rules

Pulling himself off the floor and onto the ropes - Learning to fight back THE.CONTENDER has always had a go at work and life ...

Awakening

Contender 0 Critical Thinking, Freedom, Happiness, Naive 13:46

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Round 3 - He hits the deck and is
seeing stars - the power of the world wide web</div>
 
Looking for Financial Freedom and Life Skills on the World Wide Web? Where to start? The internet is a  wonderful freedom tool but you can easily be affected by information overload! How do you quickly find the right websites \ blogs where ideas are expressed without censorship and hidden agendas so you can take informed action (Otherwise the website is just for fun and entertainment;). 
 
THE.CONTENDER has come across a large number of very clever people provide this concise, relevant information on key life topics for free. This took a lot of research and actually cost me some money: 
<ol>
<li>THE.CONTENDER was drawn into one paid news letter on penny stocks. BIG mistake. We lost at least £10K on its recommendations. </li>
<li>Whilst browsing THE.CONTENDER inevitably saw all of the glitzy consumer goods and fell for temptation on numerous occasions.</li>
</ol>
THE.CONTENDER would like to point out a few of the blogs listed on the left hand side of the screen as a starting point in my humble opinion. 
Due to the vast amount of information, what do you need to know, how do you find it and is it unbiased? Often knowing what to look for is the hardest part. Maybe this site has intrigued you about early retirement. Now it is easy to run a Google search to get all the information you would ever need. About 10,900,000 results according to Google on early retirement!!!! 
 
How can this vast amount of information be filtered and condensed into a usable format? This is critical in today's world where people are bombarded with "information" - surfing the web implies browsing, in one ear out the other and generally a lot of advertising. The web can actually be a distraction tool where you can just loose 
yourself like a soap or a good film. In order to find out what you are looking for how do you slow down, absorb the information and pick the best bits? Lets have a go at defining what to look for: 
 
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<h3>
What is worthwhile investigating for a happiness goal?</h3>
 
Trying not to be distracted in life is an endless task due to the bombardment of advertising and other types of media on every street corner. So unless you live in a box and stay there, how do you know what information or good is of use and what is not? 
 
Sometimes it is worthwhile standing back and pausing for a while. What do we really need to live happy? Is happiness in life, a gadget, exotic holiday, big house..... I am advertised these items daily as something that will give me happiness. 
 
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I have been to Africa a few times and the people there are smiling, chatting, cooking, playing, singing and dancing. I recently took part in some charity work in a rural part of Africa and their idea of happiness I would argue is very different that the average westerner. School followed by games a good meal and singing is an amazing sight. Their community happiness is truly evident. Yes they could do with better healthcare other than that would excessive material things in life (a huge wardrobe of clothes for example) really make them happier? 
 
<h3>

Maslow's Hierarchy of Needs</h3>
 
I came across a review of <a href="http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs" target="_blank">Maslow's Hierarchy</a> of needs presented by Chris Duane* of the u tube channel <a href="http://www.youtube.com/watch?v=1x_qPPTRR80&feature=BFa&list=PLD31E34390C5017E8" target="_blank">The Greatest Truth Never Told</a>. I used this to really place the needs of life in perspective: 
 
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Awakening

Round 3 - He hits the deck and is seeing stars - the power of the world wide web Looking for Financial Freedom and Life Skills on the W...

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)