How to not become financially independent
I have to admit something. Although I first started investing in stocks and funds about 7 years ago, between 2014-2016 I virtually put zero new savings into my investment platform. I have been utterly convinced that the financial crisis is just around the corner, and this time I would not let myself be fooled; I would wait it in, and bam! Invest at the very lowest and be able to happily cash out just a few years after once the market recovered and being one step closer to financial independence. This is a – What not to do! Trust in the strategy and start investing your savings now; the market will always bounce back.
Obviously my plan wasn’t quite as naive as it sounds, but my conviction of the closely coming recession still made me passively putting my money on a pile for ca 2 years. Bad, bad, bad idea.
You remember my bragging about the Swedish student loan interest rate at 0,34% in the last post? Well, this happens at a time where the most exciting account interest rate you will find is something like 0,9%. So, add some administrative fees, discount for inflation and hereyougo, -you end up loosing money on this deal anyway.
What I started to do?
About a year ago, which coincided with a big raise I got, I started seeding out this saved-on-a-wasted-pile money on funds and stocks. I didn’t dare to make my FIRE Calculations at the time (not wanting to realize how much I had lost leaving the money uninvested for 2 years). Now, I have finally come to terms with myself and started to sort this out. On track again. Will hopefully get time to post a complete breakdown of my finances this weekend so I can show you what my plan looks like. Look at my plan and The Leprechaun that will never die. It reveals the truth of the exponential growth related to finance.