Saturday, 13 August 2016

FI over 30!

Counting my assets is a delight these days.
Having had paid vacation makes it even better. Money keeps coming in while I go do something else.
This is why people go for dividends paying shareholding companies by the way.

After almost two months not looking at money at all (and most certainly not the stock market) I have counted my net worth - or as I call it - my Financial Independence index.

In the meantime my part of the stock market has re-bounced from what I see was a considerable low. I have also spent considerably less than expected (as a lot of money was made available for just in case and then never used). Most of the costs of the month in Ireland were paid in advance, spread out over several months (course fees, bus tickets, airfare, lodging - even camping food).
The consequence is that for the first time since I paid of the tax authorities, I have landed on a FI over 30 - actually 30,26.

This means that with my annual budget, I can live over 30 years without further income (keeping fingers crossed that the increase in costs are equal to the increase of the value of assets).
My annual budget is real and comfortable although in the eyes of most, quite austere.

My annual budget is however based on my current lifestyle and costs, tried and tested over years and where there is room for a new washing machine, weekend trips and books if need be. It also provides a comfortable cushion to spread costs over a year and to reduce worry. It is an annual budget very many people must live on, even while working and possibly also raising children (and without the financial security) so it is by no means impossible.

I count my assets very very conservatively. I do not include the market value of the small apartment without debt where I live (as I live there and always must live somewhere). I also do not include the value of various state, employer or even private pension schemes I belong to and will start paying out in 15-20 years as I know very little of their value then.

So why do I still work? Because I like what I do currently, I like the structure it gives my life, because the man still works, because for the first time in my life I work for a company I respect with bonkers owners and managers whom I respect, but I might want to get out if a new owner comes in, and primarily because I am really good at what I do and my clients need me and there is nobody like me to replace me. And I like that very much!
Besides, I have another year of part-time studying to do before I finish my masters degree and I can just as well keep working until then. And I like having money coming in.


  1. Congratulations! You are in an enviable situation. My FI score is probably about 5 but I can rely on a generous employer pension when I retire. Like you, I don't include the market value of my home in my net worth because if I sell it, I will just use the proceeds on housing again. I like my job too, for mostly the same reasons you mention.

    1. Five is great! A lot of people wish for five years annual budgets in the bank. And you own a house (I have an austere apartment)!