Why Real Estate Owners Have a Higher Net Worth

On average, most people who own real estate have a higher net worth than their renter peers. So why is it that home owners and landlords have more wealth, even if it’s tied up in bricks? The reason is inflation and the use of leverage in the form of a mortgage. Since real estate is appreciating roughly in pace with inflation, homes become more valuable while you put down a small percentage of the value of a home. To get even, renters have to get raises that outpace inflation by 10-15X. That’s not going to happen. Own your real estate….

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Should I Pay Off Debt or Invest?

There are ample reasons to prioritise debt payments over investments. There are an equal amount of reasons to invest instead of paying down your debts. The answer probably lies somewhere in the middle, as usual. For some (Dave Ramsey), paying off debt is all that matters. For others, investing it is. I think differently. My thoughts are that you should work on building your net worth by getting rid of toxic debt, and then build your nest egg by investing very aggressively when you’re young. When you start approaching your early retirement, there’s nothing wrong with paying off more loans…

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Refinancing My Apartment to Lower Interest Payments

Interest rates are at historical lows in Europe. You can get mortgage rates for as low as 0.9% in some countries! If you are at a higher rate, it might make sense to shop around and refinance. I recently refinanced my mortgage into a 6 year term, 1.40% fixed interest rate (before deductions!). That’s amazing. Effectively it is a free loan to me, taking into account tax deductions and inflation.

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What Is Financial Independence and the 5 Stages of FI

This blog is about financial independence in Europe. What is financial independence and what does it mean to be on this path? In this post I will explore the basic concepts of FI. Financial Independence The words may sound not so familiar. Or they may sound a bit fuzzy. I understand that. Financial independence, it can be a bit vague, or even like spam, too good to be true. I will try to make it easy for you. Financial independence is not about getting the richest person in the world. Yes, I write a lot about finance, but the journey…

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My Investment Strategy in ETFs and Real Estate

As a person looking to become financially independent and fire my boss, I’m always investing my money. As soon as it enters my bank account, I assign every euro a job, and a lot of it goes to my investments. This is my investment strategy to become financially independent in Europe.

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An Introduction To Investing In ETFs, Stocks, Bonds

Investing, that’s not for me, you might think. Or maybe you don’t believe in the value it can bring. This article is an introduction to investing in stocks and bonds, and also covers index funds and index tracking ETFs. Those can be used to invest in a broadly diversified portfolio. An Introduction to Investing Let’s start with the basics. To get comfortable with investing your hard-earned money, you must first truly know what investing actually means. Investing is the practice of buying appreciating or income yielding assets. In much simpler terms, you use money to buy things that make you more money…

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