Trimming Expenses

In my last post I mentioned that I was confident of my approach to early retirement. In addition I wrote about a couple who have been retired for 30 years by just following the 4% rule. One of the learning from that post is that there could be a huge drop in market that may hit my investments badly. In that case my investments may not keep up with my expenses. For example if there is a prolonged market slump. And I need a plan. The plan starts with cutting down my expenses temporarily so that my investments can catch … Continue reading “Trimming Expenses”

How and When I Decided To Retire

A friend and reader of my blog asked me this question — I don’t know if you covered this in the blog, but could you write about how you arrived at a number for net worth where you felt comfortable retiring. I have written about my retirement journey which is scattered across many posts. So I thought I should consolidate and revisit the topic for the benefit of new readers. The way I decided I was able to retire was when I knew that my corpus (investments) has reached 25 times my annual expenses + some buffer. That basically is … Continue reading “How and When I Decided To Retire”

Year In Review – 2020 Expenses

This is the continuation of my 2020 year in review series. See my previous post if you missed my returns report. As you probably already know, I maintain two set of expenses — one for monthly expenses and another for annual expenses. The monthly expenses include expenses that occur more frequently than once a year and the rest of the expenses go into annual expenses. Lets dive deeper into the report. Monthly expenses I have allocated a monthly budget of Rs. 56,000 for the year 2020. Below is the consolidated view of my budget, the actual expenses incurred on average per month, … Continue reading “Year In Review – 2020 Expenses”

Change Habits For The New Year

It is almost the end of the year and it’s time to reflect back on 2020. What is the progress on your goals if you made any at the start of the year. Did the events during the year upset your plans? What impact did COVID have on you? Did you come out stronger? Learned something new that you never thought about earlier? Usually I reflect back around this time of the year and make note of my achievements and failures. The details of which will come out next year as usual in my year in review series. If you … Continue reading “Change Habits For The New Year”

How To Plan Your Financial Independence

Several people have routinely asked me whether I planned for this or that before deciding to retire early. Well I planned the way that works for me under my circumstances. There is no one size fits all and no one comprehensive definite solution. None the less, since so many people have this question about how to go about planning for financial independence, I thought I should write a post about it. So what were your questions? Some have asked me if I had planned for child’s education, child’s marriage, travel, medical expenses, inheritance etc before deciding to retire early. I … Continue reading “How To Plan Your Financial Independence”

How Much Do I Make From Ads?

This is sort of a continuation of my previous post — truth about my passive income. Over there I mentioned that I have recently started showing ads to offset some of the expenses of running the blog. And I promised a follow up post explaining the costs and how much I am earning from ads. So here it is. I will try to keep it short because it is probably not relevant for you. Expenses of running this blog First let me go over the expenses. I am running this blog on a Google Compute Engine instance, henceforth to be … Continue reading “How Much Do I Make From Ads?”

How Much Will I Get From Franklin Ultra Short Term

You have all read about the Franklin debacle regarding the closure of 6 Franklin India Debt Funds. Many have invested in those funds. Especially the Franklin India Ultra Short Term fund, lured by the excellent returns. I am also one of the investors in the ultra short term fund. And I have a significant portion of my debt portfolio in it. The fund came with a promise of “optimum balance between regular income and high liquidity“. But now, it can neither generate regular income, nor does it have any liquidity at all. Talk about the irony Most, if not … Continue reading “How Much Will I Get From Franklin Ultra Short Term”

My Expenses Compared with MMM

Some of you might have heard of Mr. Money Mustache (MMM), who retired at the age of 30 in the US and is quite popular in the F.I.R.E world. I have always wanted to compare my expenses with him and see if I can be as good as him with my expenses. I always believe that there are some similarities when I compare myself with him (like workouts, DIY, minimalism etc). My expenses should also be similar then? You know that I have this habit of looking back at my expenses in the past year and write a post on … Continue reading “My Expenses Compared with MMM”

Year In Review – 2019 Expenses

This is the continuation of my 2019 year in review series. See my previous post if you missed my returns report. As you probably know, I maintain two set of expenses — one for monthly expenses and another for annual expenses. The monthly expenses include expenses that occur more frequently than once a year and the rest of the expenses go into annual expenses. Lets dive deeper into the report. Monthly Expenses I have allocated a monthly budget of Rs. 53,000 for the year 2019. Below is the consolidated view of my budget, the actual expenses incurred on average per … Continue reading “Year In Review – 2019 Expenses”

How Much Should I Invest?

While having a conversation with one of my friends, it occurred to me that the current calculators are not sufficient to figure out how much to invest per month while increasing the SIP every year to meet your retirement goal. Lets say, you have an age in mind at which point you want to retire. And you want to know how much you should invest every month of every year until you reach your goal. Throw in a twist, which is that you want to increase your investment every year by some fixed percent. There is no calculator on this … Continue reading “How Much Should I Invest?”