From old of mistakes to FIRE?

First steps have been taken. This forum has a wealth of information and knowledge, it’s amazing!

1) Pillar 3A

I currently have a Pillar 3A with Migros Bank. I had chosen this in the past because of their lower fees and higher returns compared to insurances or other banks. But I now realize that it is still too expensive and the returns could be better. I was investing my Pillar 3A in Migros Bank (CH) Fonds - Sustainable 45 V, which has a TER of 1.15% (or 0.90% when invested in Pillar 3A through Migros Bank).

I have now opened an account with VIAC and started moving my monthly contributions to 3A there, starting this end of the month. I have chosen their Global 80 strategy for now. I have also opened a second portfolio with them to transfer my Migros Bank 3A account to them at the end of the year. I will not do it just now, because otherwise I will have to start paying monthly fees to Migros Bank (CHF 3.-/month) until I have enough money aside in my “emergency fund” (target: 10kCHF).

2) Credit Cards

I currently have a Visa Gold card through Migros Bank that costs 200.-/year. I used to justify it to me because of the “prestige” (yeah, right) and the added travel insurances. I have now opened a Revolut account and will use this instead. I have also asked for an invitation to their “Metal” program because of their cashback and travel insurances. Metal costs GBP 12.90/month, but offers 1% cashback. As I usually have between 2-3kCHF per month on my card (mostly due to work, which is of course reimbursed), the card will pay itself each month for me, and I get to keep the advantages of the travel insurances I had with Migros Bank’s credit card.

I also have a Migros/Cembra free credit card that I don’t use much but keep aside in case I have problems with my main credit card. As it doesn’t costs anything, I will keep it as is.

My main problem, now, is that I need to change my “use cycle”: I used to (and frankly still am, for a couple more months) living paycheck to paycheck. As such, once all bills are paid at the end of the month, there is not much left on my account. As such, I have taken the (bad) habit of using my credit card for personal expenses too, and to pay the credit card at the end of the month, essentially using a free monthly credit to get by. By switching to Revolut, I need the cash upfront in the account.

3) Banking

I am currently using Migros Bank. While I like it, I see that once I start to use Revolut, I will have to pay transfer fees when “charging” my Revolut card. I don’t want that. Post Finance offers free SEPA transfers so that should take care of it.

I will switch banks in December, when I have enough money in savings/emergency, so that the Post Finance account doesn’t costs me anything. Also, the fact that now Post Finance lets you get money from different shops in Switzerland and not only their Post Finance ATM or the Post Office makes it more interesting than Migros Bank has become (they used to offer free ATM withdrawals anywhere in Switzerland, but stopped that a few years ago). For the rest of the time, Revolut’s free monthly withdrawals should cover what I need elsewhere.

4) Trading

This is where I’m not so sure yet.

I still have an old and dormant account with Swissquote, that I used for a few years more than 10 years ago when I dabbled a bit with stock. I will now close it.

But, I’m not sure where to open one for now. I have written a separate post regarding my concerns with Degiro, which is what I’m leaning toward for now. As I won’t start investing until the end of the year, I have time to make up my mind.

5) Uncluttering

Nothing like moving to a new, much smaller place, to get a dose of minimalism in your life! As I will be moving in a few weeks, I have started an inventory of everything I have. And I feel ridiculous.

Those dumbbells I swore I would use everyday to get exercise? More dust on them that in my granny’s attic.
This golf set that I received 10 years ago from a friend who wanted me to go golfing with him? Yeah, collecting dust ever since I decided that golf was certainly not for me.

The list goes on, unfortunately.

I guess now Anibis and Ricardo will become my best friends for the next few weeks.

My main “problem” is that my main two hobbies are very expensive. Photography and music. There is a running joke about photography: “Teach your kids about photography, and they won’t ever have money for drugs.” The same could be said about electric guitars and associated equipment. Do I need so many lenses, guitars, amps? Definitely not. Do I want them? Of course! Do you use them all? Well… yeah, at least once a year. Is it logical to keep all of this? No, definitely not. Long story short: My heart is not yet ready to let go of my hoarding for those two hobbies. I’ll revisit this in a few months.

It’s amazing to realize how much stuff one can have and not use, really. Same goes for clothes, sport equipment, … I really need to step my game up before my move.

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I guess that’s about it for now. First steps taken. Let’s keep building the momentum toward the cruising speed to FIRE!

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