Friday, 1 May 2015

FI 29,13


So the result of this months calculation of my net worth divided with a feasible annual budget minus having paid most of the tax owed is not good. It is not making me happy.
With a financial Independence number of 29,13 years, I have lost more than two years in a month.
On the other hand, it is a very good, reliable, humble number that I am filled with gratefulness that I have it. It means that I can live on my annual budget for 29 years in today's money and hopefully the inflation and price increases are close to interests and profits. I do also have a pension coming that is not included as it is a very unknown entity as it will be very dependant on how much money I put into it. Do your own calculations.

On the third hand, I am back to the FI number I had before the recent stock market increase. This means that I am back to the FI number I had on the first of February.

It does tell me I need to bring home some of the profits from the last months, but since it is also a result of paid dividends and savings (I still work some) there is really no need to worry.

Even if the financial markets do not increase (or do not fall, which is just as likely), I will be back on an FI-number over 30 within the year.

All in all, this is a sobering experience on how secure investments which are placed in very very secure actually are. Meaning, not really. Nothing is really secure. Only I can make myself feeling secure by developing skills and abilities to handle change and risk and catastrophes. For me, being debt free is the fundamental beginning of that feeling of security. 

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