Why I Won’t Be Paying My Student Loans In 2019

I carry a small student loan, that I took out in the last year and a half when I went through university. I didn’t need the money to pay for tuition (it was 2,000 EUR per year), nor did I need it to pay for bills – I lived with my parents at that time. Then why did I take out student loans? They are evil right? My Student Loans Well, not always. Here in The Netherlands student loans are 99% of the time borrowed from the government, at some very favourable terms. When I took them, they had to…

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November 2018 update

After my October update that came in way too late, here’s my November 2018 Overview! It’s December already, so here are my numbers from November! My finances this month were on-point again, after some rocky months. I managed to save 39.3% of my net income this month, which falls slightly short of my goal of 40%. Year to date, my savings rate is still 39.7% and I expect to stay around this number in December. Read the full article here. Best, B

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Investing is Stupid, It Doesn’t Work

Why would anybody want to invest in stocks? That is a sure way to lose all your money. I have tried it once and it didn’t work. Lost 20% of my money. Investing is a scam. Investing is stupid! Of course, the above is not my personal view on investing. But reactions like these are common when I try to talk to people about finances and investments. How do you deal with them? Read that here. Best, B

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Reasons I Blog in English

It’s been just over a year and a half now that I started blogging about personal finance. As a Dutch guy, I started my first blog in Dutch. You can still find it over at Ontsladebaas.nl. The blog is still up, all the Dutch articles can be found there. But why do I blog in English? Read the full article here on Fire The Boss.

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October 2018 overview

This monthly overview is very, very late. I know. I have not been paying attention, and since I was putting out blog articles regularly, I didn’t see that my October update was lacking. Since we’re almost into December, there’s still time. Here’s my October 2018 overview! In financial terms, I did way better in October than I did in September. My savings rate was extremely low, at a lean 15.7% but that was due to HR messing up my tax withholdings in September. Year to date, my savings rate is now 39.7%. This means that in November and December I have…

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The Power of the Side Hustle

There are hundreds of potentials ways to make money in your spare time. Just search for side hustle ideas online and you’ll get blog after blog listing potential side hustles. From my standpoint, I recognise three types of side hustles. The first is simply trading time for money. You will spend hours working for someone else, in exchange for pay. This is the easiest type to break into, but also the least scalable. The second type is already more passive, but still requires your attention. An example would be buying and selling things online, a.k.a. flipping. The third and most…

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The Dutch Retirement System

Here in The Netherlands, there are three pillars to our retirement system. The first pillar is the government’s social security payment. The second pillar is the retirement that you save for with or through your employer. This can be a defined benefits pension or a defined contributions retirement account. The third pillar is everything you arrange yourself. Sometimes this can be a pre-tax retirement account, but usually it’s also after-tax savings, investments, or real estate. Read more.

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Why You Need an Investor Policy Statement

An Investor Policy Statement is a document that outlays your investment goals, desired strategies, asset allocations, contingency plans, and concrete plans on how you’ll invest. This IPS will very likely be a living document, that changes as your life changes. However, it shouldn’t change too often. The reason is simple. You lay out your investment goals and strategies for the long term and they simply shouldn’t change too dramatically too often. I find myself wanting to chase the next shiny object, and the next one, instead of following the plan. My IPS is now the plan so I have some…

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What Would You Do With 1 Million Euros?

One. Million. Euros. That’s a lot of money. Like seriously, a lot. Here in The Netherlands, a million euros is still considered a metric shit ton of money. In the USA, if you make Silicon Valley programmer’s money, or New York City banker’s money, a million is something you can save up in a couple of years. In The Netherlands, a million euros is a lot. Not a lot of jobs pay the kind of money you would earn in the aforementioned US-based jobs, plus our government will take a large chunk of your hard-earned salary (up to 52%). So…

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You Need a Budget – YNAB (part 4)

After you’ve given every euro a job, embraced your true expenses, and are rolling with the punches, the last step to take is ageing your hard earned money. You need to do this so that you can live on last month’s income and thus break the paycheck-to-paycheck cycle. Have you ever postponed paying a bill because you get your salary in a couple of days? If so, you really need this YNAB rule number four. This rule makes you build up a cash buffer of at least a month, so that you no longer have to float your expenses towards your salary….

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