Monthly logo change

Hi readers,

some of you may have noticed a small change in the logo. During the month of June it was:

riplogo43.5

And during the month of July it will be:

riplogo44.6

As you can see we made progresses! A fantastic 1.1% closer to the final goal in last month! This happened despite Brexit and generally a bad month for investments. I’ll go deep with numbers in the near future, for now consider this:

  • Let’s call the percentage shown in the logo progress bar.
  • The progress bar shows how close is family RIP to Financial Independence. The (obvious) goal is to reach 100% and ideally retire, semi-retire or I don’t know now… food for a dedicated “goals” post.
  • The progress bar represents Net WorthFU Number, i.e. how wealthy we are now over how wealthy we need to be to live on our wealth forever. More on this (both the theory and our actual numbers) in dedicated posts.
  • I measure Net Worth in 3 currencies, since I have assets in CHF, USD and EUR, but the reference Net Worth is in EUR because at the moment, the idea is to retire in some EU country (like Italy?), assuming EU will still be a thing in ~5 years. More on this in future posts.
  • Our FU Number, i.e. the amount of wealth we need to reach to call ourselves FI, is going to change based on decisions we are going to make in the next few years, plus factors like inflation rate, etc. Decisions that impacts the FU Number are kids, cars, housing, location,… everything comes down to “what would be our FIRE monthly budget” and “which Withdrawal Rate do we consider Safe“? More on these topics in future posts.
  • I’ll update my finances monthly with a dedicated post and an update of the progress bar in the logo. Skipping this one month because I don’t have yet cleaned my spreadsheet from Personally Identifiable Information.
  • The current projection is that we’ll be at 100% in roughly 5 years, before I’ll turn 45.

Given a fixed FU Number, several factors contribute to the progress bar: incomes, expenses, investments performance, currencies fluctuations.

Fun Story: I took a sabbatical month in May 2016. I earned close to Zero that month (except for some health insurance contribution, Hooli stocks vesting and a rental property). At the end of the month my NW in CHF went up 12k due to good investments performance. This month, June 2016, I’ve worked the whole month and earned my 5-digits but the NW in CHF stayed flat, due to bad investments performance and the strengthening of the CHF with respect both EUR and USD. At the same time, the NW in EUR went up 11k (that represents the +1.1% on the progress bar… homework: what’s my FU Number today?).

How was your June?