On... Personal Finance Golden Rules

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On... the Short Cut

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Punk 6529 had a Twitter thread titled " On Making It ". It is a good thread and something that I do think about from time to time. TLDR of the thread is as follows. Live can be divided into 5 levels financially. Level 1 is barely enough to survive. Level 2 is living paycheck to paycheck. Level 3 is living comfortably. Level 4 is Super Rich Level 5 is Nirvana. My personal opinion or net worth range that I apply is as follows. Level 1 - 0 to 1k$. Level 2 - 1k to 100k$. Level 3 - 100K to 10mil$. Level 4 - more than 10mil$. Level 5 is when you're happy with your net worth. This is a very special level because it is not defined by your net worth but defined by your own satisfaction. This is of course a very rough representation of what Punk 6529 is talking about. I have lived my life mostly in Level 3. Grew up in a Level 3 Family when I finally got a job and is pursuing my own career, I was mostly in Level 3. Early in my career, as an ambitious young man, I have considered tha...
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On... My Business Model

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 Last post , I wrote that trading should be done like you're running a business. If so, what kind of business would I be running?  The business model that I best want to replicate is a casino business ( see this video , if you want to skip the rest of the blog post ). Most people that I talk to, thinks that investing or trading is a form of gambling. Is trading or investing really gambling? This topic is rather divisive and it depends on who you ask. Well if it truly is gambling, I would want to play the part of the casino, because as they say, the house always wins.  How does the casino make money? By having a positive expectancy.  They don't have to make money on every bet, but over large number of bets, the profit has to be bigger than the loss. In terms of trading, my winning percentage is not really that great but as long as the average winners are bigger than the average losers, that is good enough. Year to date for 2021 ( over 133 number of trades ), my winnin...
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On... FIRE

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FIRE – Financial Independence Retire Early. The popularity of the movement is largely due to the efforts of Mr. Money Moustache. Of course, financial independence and early retirement is nothing new, I have (and many before me) been thinking about financial independence ever since I started working more than 10 years ago. I must admit by just thinking and without concrete actions, I am not there yet with this ‘FIRE’ thing. Mr Money Moustache retired at 30, therefore I’m definitely too old to beat that record. It won’t be possible for me to retire at 30 (although I consider myself semi-retired at this point); realistically financial independence in 15 to 20 years’ time would be a viable target. Financial independence and early retirement can mean a lot of different things to a lot of different people. For me, it would mean paying off our mortgage and to have enough in the nest egg generating passive income. So how much would I need? I would refer to the 25x Rule. Of course, circu...
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