Friday, 2 December 2016

FI31,74/25,39


The cryptic title means that I have a financial independence equivalent of 31,74 years counting one way (the old way) and 25,39 years counting another way (the new way).

The maths behind it is simple. My total amount of assets (not including my house as I live there, nor any pension expectations as I do not control them) divided with my annual budget.

My annual budget is low, I admit, but it is higher than what a lot of people live on. Even more importantly, my annual budget is higher than a lot of people are expected to live on legally. State, society, companies set a poverty line, and then they set an amount that you are expected to sustain yourself on. My annual budget is still higher than that.

Most importantly, I have been living within my annual budget for years. It includes a lot of no-buy's and not-spend's but it does include an occasional weekend-tip to Paris and occasional weekend-trips to the country side.

I also retire legally in twenty years.
I also may leave my current job within the year. 

It makes sense to adjust my annual budget to an amount higher and primarily safer. It needs to include all and any costs that can, could, might and would be included with a slightly different lifestyle. If I do leave my job during 2017 and set out on a different path, it will cost money.

So I budget for a much higher annual budget for next year. This also includes price increases that can be expected. I do not think I need all of the budget, and I surely hope I will not have costs amounting to the annual budget. But I might. And I need to be prepared.

The new annual budget for 2017 will not increase my spending. But since the new budget give me a financial independence number of 25,39 years without income, I feel safe.

I pamper myself with security.
Because I am worth it.

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