Wednesday, 1 March 2017

FI33,39

February is a short month and always runs away with me. March is here and it is time to count my assets and my financial independence number.
(The European Stock markets collectively just got incredible happy so the numbers are a bit inflated.)

I count my assets once a month on the first day of each month. I do not include pension systems that I have no control over and I do not include the value of my apartment as I always will have to live somewhere (a fixed abode is very important for my well-being but it does not have to be neither large or grand).

Today I felt cranky with the new administrative system at work so I counted my assets during work hours. I felt very much better afterwards.

Dividing my financial assets with an annual budget that I have lived with for years and that is, although frugal, not extreme in any way, I got a financial independence number of 33,39.
This means that based on my current assets, and hoping future price increases will be covered by future dividends and interest, I can live for 33, 39 years without further income. I have 17 years until some sort of national income will be paid out and about 40-45 years left on my life expectancy.
I have a SWR over 4%. (If you do not know what SWR is, google it and start learning about cumulative interest rates).

I am a little shell-shocked. I have never had such a high FI number before.
Normally I do not count SWR but it is a number that floats around on the webb and it is conservatively an estimate on how much you can take out of your assets every year without decreasing the capital. It is a safe number and I am beyond it.
I am actually quite shocked.

We are living the life right now, paying three rents and eating out and enjoying ourselves and although I still work, we are spending more money than in a normal month and it is worth it so gain experiences, memories and knowledge. With the this months exaggerated budget, I could stay afloat for 16,78 years.

I will not feel cranky about the new administrative system any longer. If I can't figure it out, they can fire me /HA!/ and although that would be sad, it is not a financial problem.

2 comments:

  1. I am envious of your position. Had I had a life partner of similar talent and goals I would be in an enviable position at this point of my life. Alas, I have to live with my decisions made without all considerations at that time.

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    Replies
    1. Sad to hear, surely there are good things too? He is not a perfect partner and I have most certainly not been his perfect life partner all my life (but then I have not been his partner for life and am not making any such promises either).

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