Hit 300K today!

[Lordy]

Today marks the day that my stash has reach 300.000 Euros. Writing this out is amazing.

Here are my milestones so far on the journey to FIRE:
October 1, 2016:         300.000
November 1, 2015:     250.000
November 23, 2014:   200.000

So over the last three years I managed to put about 50K onto the stash yearly.

If I manage to keep that pace and step up my investing game a bit, I will hopefully reach FIRE in 5-6 years, just after my 40th birthday :)

[marty998]

That must feel great, well done!

How have you managed to do it? Saving, investing?

[Lordy]

How have you managed to do it? Saving, investing?

Mainly through saving as only about 10% is currently invested.

I discovered the "pay yourself first" approach a few years ago and followed it rigidly. When I was making around 60K I saved somewhere around 10 to 15% monthly.
In 2013 my salary increased significantly but I avoided what's called "lifestyle inflation". I still live in the same apartment, driving the same car, buying the same food
although I make almost double of what I used to make. The only thing I "inflated" was my savings rate to slightly above 50%.

It feels very good to know that if I would loose my job tomorrow, I could survive months or even years while looking for new opportunity. Whenever I see my monthly
paycheck I think "that's four weeks of bills and four weeks of freedom".

[Roadsidetreasurehunter]

Well done.  It feels pretty darn good.  Congratulations on staying focused.

[aperture]

Congratulations - awesome feeling to hit those round number milestones. Question: Why only 10% invested?
Best wishes, Ap.

[Lordy]

Question: Why only 10% invested?

I firmly believe that the market is overvalued and the market recovery since 2008 does not represent the
underlying economical facts. All that cheap money from FED, ECB, etc. has inflated the prices of assets
such as stocks and real estate. I think that once the interest rates start going back up, the markets will
see a serious shake and that would be a moment for me to increase my investment percentage.

[frugledoc]

Question: Why only 10% invested?

I firmly believe that the market is overvalued and the market recovery since 2008 does not represent the
underlying economical facts. All that cheap money from FED, ECB, etc. has inflated the prices of assets
such as stocks and real estate. I think that once the interest rates start going back up, the markets will
see a serious shake and that would be a moment for me to increase my investment percentage.

short the market then?   

interest rates in europe are more likely to go negative than rise imo.  UK is perhaps the only possible exception as there is some growth.


 

[arebelspy]

Have you run the numbers on where you'd be at if you had invested throughout, rather than deciding you were right and the market was wrong?

FWIW, I agree with you, but I'm still invested, because it's better than trying to guess when or if we'll be right. There's nothing saying there has to be a crash--slow growth for years until underlying fundamentals catch up is completely plausible, and would leave you uninvested completely, indefinitely.

As the saying goes, the market can stay irrational longer than you can stay solvent.

Or what if it climbs 50%, then crashes 20%?  Heck, I was thinking similar to you in 2010 (but didn't act on it, luckily) and look at the growth since then.  If a crash happens, it won't necessarily retrace all of that, meaning investing would have been the better choice.

In other words, you could be right in your analysis, but still come out behind monetarily because of how the market behaves.

Some things to think about, at least. Congrats on the 300k mark! :)

[Classical_Liberal]

Congrats!

Whenever I see my monthly
paycheck I think "that's four weeks of bills and four weeks of freedom".

I love thinking about it this way.  Every month that goes by I think "that's a month off in 5 years and Two months off in 20(tax deferred contributions)"

[Metric Mouse]

Congrats!

Whenever I see my monthly
paycheck I think "that's four weeks of bills and four weeks of freedom".

I love thinking about it this way.  Every month that goes by I think "that's a month off in 5 years and Two months off in 20(tax deferred contributions)"

That must be great to think that way!

[PhoenixHeat]

Excellent job avoiding lifestyle inflation! You are inspiring to Stache growers!