Yes. 6.4k net, 1.2k savings.
So if I would work 80%, I would earn 5.1k. 0.3k less taxes, so 4.9k expenses. Savings rate down to 0.2k.
3 Likes
I think it really depends also on where you picture yourself in 5, 10, 15 years from now.
As first approssimation: if you don’t expect big changes in 5-10 years from now (examples: stay in CH, do a job similar to what you do today), then go for 80%. Your long-term “health” will benefit for it.
If you instead think that in few years your life is anyway going to change (example: kids, going abroad) then better to “squeeze” your enery, stay 100% and “relax” later.
[well… not really relaxing if you plan to have kids…]
(according to I would not call that a ‘misconception,’ maybe different goals for different people
Agree, FIRE doesn’t have to be about all or nothing.
Partial FIRE is the point at which you have enough financial freedom in your life that you can reduce your current workload and pursue part time work. As previous posts have mentioned: part time work requires a part time workload, not same workload for less salary at some abusive company.
(Partial FIRE: The Solution to Your Problems? - The Physician Philosopher)
Coast FIRE = means you don’t touch your portfolio but you dial your employment back to cover your expenses only. Once the portfolio grows to cover your full expenses, you are FI.
Barista FIRE = means you are withdrawing money from your portfolio, but supplementing it with income.
Lean FIRE is being able to retire before the conventional age of 60+ with a very lean and simple lifestyle.
Expat FIRE is basically geo-arbitrage: FIRE in a cheap country
5 Likes
Went 80% 3 yrs ago when my son was born. Will never look back 
Clients accept as long as it’s transparently managed and you can keep denying meeting requests consistently.
The local optimized maximum is probably landing at 90% on 4 working days.
6 Likes
Did you end up reducing your pensum to 80%?
I’m also thinking about doing it in the near future. 
1 Like
Can recommend it, did it and never looked back once. Can’t imagine a life without it actually, time is the most valuable and finite good and the ultimate luxury 
2 Likes
I guess it also depends on the personal situation?
We have a 6 yo, that I already see as much as I possibly can (including every Wednesday afternoon), working at 100%.
1 Like
Absolutetely. Both my spouse and I went to 80% when the first kid arrived and each has a mummy/daddy day. Many friends and co-workers did the same, mostly fellow millenials.
I need up to 1h to get to and from childcare and work. Add 1h for unpaid breaks and the 8h workday becomes 11h that I rather spent with my kids.
And consider taxes on the cost side. We had a marginal tax rate of around 35%. So a 20% reduction means only 13% net. A day of weekly child care can cost up to 6k a year which may not even be tax deductible until now, so it’s saves another x%, assuming the time is spent with the kids instead of taking time for yourself.
For me, the benefits are much greater than the cost and reaching full FI a few years later doesn’t matter. Eventually, I’ll get there. We had over a decade working full time and saving rates above 50%. Obviously this dropped, but we can still stach away.
I might consider changing from a single day off to some hours every day combined with home office once kids reach school age. Without kids, doing sabbaticals for some months to travel or do whatever would have been an alternative.
6 Likes
We all know of time value of money (money now is worth more than money later) I think it makes sense to think about time this way too. Time now is worth more than time later.
I have started working part time. Some of it due to my high stress job where I worked my ass of these past years. Some of it due to other struggles I’ve been dealing with for years that were badly impacted by working so much. And most of it due to my newborn.
I worked hard to get a job where at 60% I can support a family of three in a city. Once my wife starts earning (newly self employed) we’ll be saving money again instead of being at around net zero (actually losing a bit of money every month).
This is what gets lost in the FIRE discussion often. Something I’m struggling with from time to time now that I decided to reduce my work. Time now is worth more than time later!
I won’t FIRE, I won’t stop working at 50, but I enjoy time in my 30s, time with my son, regular 3 - 4 day weekends (4 days every couple of weeks) and seeing my wife being able to fulfill her dream. Actually @Neville made a beautiful comment to another post where I mentioned this:
Retire from a good life to an even better life. Not from a stressful life that was wearing you down.
If you can support yourself and your family at a reduced rate, even if you have to restrict yourself a bit, go for it!
15 Likes