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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Het (on)zin van een emergency fund

Common wisdom in the personal finance world is to have at least 3/4/5/6/9/12 months of expenses in an emergency fund. The money in this fund is used as a cash buffer, not to be invested but to be ready when something bad happens to you. In general, this is really good advice. But for the die-hard FIRE people, do you really need an emergency fund? Having a large sum of cash can certainly help you out when you’re in need. But it also has some negative implications. Cash drag is one example. In this post I dive deeper into the…

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Volatility in the Stock Markets is Back

The last few weeks we’ve seen some more volatility in the stock markets. Is this time to worry? What should you do when stocks are bouncing up and down? In essence, you should probably do nothing. Just stick to the plan. If you don’t have a plan, make one then stick to it. Even in though times. Markets go through cycles. Though times are always coming, and since we can’t predict when they’ll come it’s better to just don’t worry about it. If the recent volatility has you worried, you might have to switch to a slightly less aggressive investment…

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You Can’t Predict But You Can Prepare

You can’t predict the future. Not in life, not in finance. If you could, you would be a multimillionaire and probably not reading this blog. But what you can do is prepare. Preparation for multiple likely scenarios will set you up for succes. For example, in personal finance, you will never know what the stock market will do. But you do know that when you save 40% of your income, and invest that money, you will likely come out way ahead of your peers. Luck is when preparation meets opportunity. All of us get opportunities. So be lucky by preparing…

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How My Colleague Lost 400,000 With This Financial Decision

Good morning! Not all good decisions are the best decisions. Paying down loans is generally considered a good thing, and I agree. However, my colleague chose to pay off his house early, and that will cost him 400,000 in the next 30 years. Ouch! This case study will investigate whether he could have better invested this extra money instead of throwing it at his mortgage. It will look at the financial pros and cons and then conclude not only with the financial results, but also qualitative arguments like peace of mind. Read the full article here on Fire The Boss….

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Why I Decided To Remove Bonds From My Portfolio

Most people that invest (not a lot actually do invest!) are putting their money in a mix of stocks and bonds. Bonds are generally considered a more safe investment. I completely removed bonds from my portfolio this year. The reasons are simple: Volatility doesn’t scare me, I don’t need the money to live on right now With a very long horizon (60 years) bonds are way riskier, because they tend to return less I rebalance using my cash that is saved up for a real estate Do you invest in bonds? Read the full article here. Best, B

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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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