The third quarter of exploring a different lifestyle and the second quarter of 2023 are now over – so far it is going very well!
I work for a low salary but am building a nice big share of equity in a science-based startup. In its small leadership team I am by far the least intelligent person so I am constantly learning new things and am enjoying the challenge.
I do not have to set foot in an office and can work from home which is nice to keep in close contact with friends and family and to explore Europe in depth. What surprised me, is how easy it is to earn some side income. The startup also passed a major milestone, after which my meager salary should increase by 70% in the next few months if all goes to plan.
Q2 2023: Overview
- Salary: SGD 15,955 +
- Other income: SGD 3,693 +
- Dividends received (before tax): SGD 4,574 =
- Total income: SGD 24,222
- Expenses: SGD 12,386
- Savings: SGD 12,503 Savings partly came out of a ~SGD 58,106 cash buffer I created before quitting my corporate job)
- Saving rate: 51%
Current portfolio value: SGD 879,802 / =USD 650,600 / = EUR 595,300
At the spending level of the second quarter of 2023 I would need at least SGD 1.25 million to retire – so it is still quite far off.
In the second quarter, my portfolio increased from SGD 849,942 to SGD 878,925. This increase of SGD 28,983 was made up of fresh investments of SGD 12,503 and portfolio gains of SGD 16,480.
My portfolio mainly consists of index funds these days.
The key chart
Only once the 12 months rolling average spending falls below the 4% WR line, I can start considering myself financially independent. Spending was too high in the second quarter. I booked an expensive trip to Korea and subscribed to an electric car while living in the German countryside.
Biggest life improvement: blocking Reddit on all my devices
Sometime in Q2 I realized that I was spending way too much time on Reddit. I opened the app or the website as a reflex and then would spend hours browsing and “discussing”. What I realized is that Reddit seems to be a gigantic echo chamber of whatever interest or opinion you might have. At the beginning it is fun, but later it becomes problematic, because of the culture it creates.
In the 12 years that I was on reddit, it became more mainstream and the financial independence subreddit turned into something like an advanced personal finance forum… I much preferred the pioneers and wild outliers, who live in their offices, save 90% of their income or do other shenanigans in their pursuit of alternative lifestyles or freedom. The last holdout seems to be the early retirement extreme forum, especially after even Mr Money Mustache bought himself a seven seater SUV.
After going cold turkey and blocking reddit on all devices, my mood and attention span improved dramatically. I now read longer articles and can concentrate better. I used to spend at least 1-2 hours each day on reddit, which I am now putting to more productive use – a big win. Every other day I still open reddit in the browser without realizing it – only when the page does not load I realize how deeply ingrained reddit was in my routine.
I do not have Facebook or Instagram, which also helps. LinkedIn I need for work, but I am trying to use it as selectively as possible.
Outlook
The best part about the new life is the amount of “bandwidth” that I suddenly have after leaving the corporate leadership role with its stress and endless meetings. I can catch up with people just for fun, I am helping a friend build her new company (for free, just for fun) and I signed up to be an accredited angel investor in Germany. If the right opportunity comes, I would like to make 1-2 angel investments to broaden my profile and to be exposed to new ideas and people.
I also joined the board of an environmental NGO and am having lots of fun interacting with these people who are very different from me in every way. Life is good!