After more than a year reading MPs blog (Awesome work by the way - thank you so much for your meticulous description of how you are getting to FIRE!) and checking out the forum from time to time, I think it is time that I introduce myself in here as well as I want to contribute to and engage more with the community from now on.
I’m a 20-something years old Swiss entrepreneur (IT-field) living in the german part of Switzerland. I’m in love with entrepreneurship and all topics revolving around it as much as most of you are in to the FIRE topic. As I love to work and do not wish to stop that at anytime, I really like to keep control over my income/outcome and handle my finances, private and business wise in a way that gives me the best possible long term outlook. That’s why I really love MPs posts and the discussions here in the forum. I bootstrapped my company, which means that it belongs completely to me. As my business now starts to pay off a decent salary (after 1 year of gratis work and a ~15k investment) I hit my first big goal: Being my own boss and having a small team. I’m really grateful for that.
As the next step I obviously want to grow the company and take my private financial matters to the next level: Starting with investing and optimise expenses where it is possible. Following I describe the actual state we are currently in, knowing that there is still a LOT of potential. There is where I need your help, as I don’t know where exactly to start.
I’m happily married to my beautiful wife, which is also working and owns a big, four-legged domestic animal that is quite expensive. But as it is her true passion that is totally fine with me. We will try our luck with children in 1.5 years. We are donating 10% of our income, which is undebatable.
Following I want to give you an overview over our actual financial situation and share my next steps; I’d love to hear your opinion and tips along the way. I plan to keep you updated in here as a journal as I saw some of you guys doing that as well. Looking forward to the journey with you guys!
Our combined monthly income at the moment: 10800
Budgeted Spendings (monthly)
Fix cost - 4612.16
health insurance 634.00 (SWICA, with a few well considered additional insurances that just fit our needs right)
life insurance plan (Säule 3a) 150.00 (history mortage that my wife brought into our marriage, due to private/social reasons we can not end that - already tried it. I have to live with it.)
mobile and internet sub 159.00 (too expensive - on my list for improvement)
living cost of the best friend of my wife 700.00 (no it is not me)
food supplements 157.40 (atm I think that it really improves our lives, convince me otherwise!)
Living cost - 940.00
household and food 740.00 (we often need more, as I need to eat out often doing sales for my business. I just started to prepare food, but really could improve there. Would love to hear your tips.)
gas wifes car 200.00 (a car is needed due to wifes BF - she uses it daily)
Fun and free time - 1592.3
pocket money for both of us 700 (350 each, used for individual hobbies, clothes and fun with friends as a weekend trip for example)
weekends together/vacation/date night 839.00 (VERY important to my partner, after countless conversations we met in the middle. atm I can not strip away more here…)
books/newspapers 30.00 (I love to read!)
software and netflix subs 23.30
Long time cost - 1492.76
taxes 1081.76 (we save 10% of our income for taxes and pay them as soon as we receive the check. I was thinking about paying it each month, but was not brave enough to do so yet.)
Serafe 31.00 (@#![=)
travel cost for me (SBB) 100
medical related savings 210.00
energy and contents 70.00
Car - 298.00 (a car is needed due to wifes BF - she uses it daily)
Save for new car 200.00 (maybe we will need to buy a new car, so we need to put away something for it. Would love to hear your suggestions for what kind of car we sould buy.)
MfZ Insurance 40.00
Service savings 41.00
Vignette and traffic taxes 17.00
Miscellaneous - 220.00
unexpected stuff 150.00
Savings - 1655
Saving rate 15.3% (compared to your rates I’m not proud of that. I’d LOVE to improve it.)
Our actual savings in cash (without the money that is allocated to other goals/purposes): 12400.00
Used tools & banks
- YNAB (using it for more than one year now - loving it! served me really well, we would not have been able to save 12.5k while starting a business without it)
- bank account by Zürcher Kantonalbank (benefited from student discount up to this year)
- credit card by Zürcher Kantonalbank
My next optimising steps
- I’m just switching bank account to Zak
- I’m just switching credit card to Cumulus & Revolut
- Switch mobile/internet sub to a cheaper provider
- Cancel food supplement subscription email@example.com
As a financial advisor told me, we should stash three times our monthly income in cash for security reasons before investing in a Säule 3a plan or investing something on the stock market. What is your opinion on that?
At the moment my plan looks like this (assumed that our income does not change, which will happen soon; thanks to my business)
- Get these cash savings up to 30000 (stashing cash for 10 more months)
- filling up both of our Säule 3a via VIAC (11852, as 1800 get deducted because of wifes insurance plan) per year (7 months)
- use the remaining 5 months of the year to invest in index fund VT via DEGIRO (because I have nothing invested so far, so <100k)
What do you guys think of that? What would you change / improve?
Looking forward to discuss and implement changes.