Financial independence my way

This article is my experience in the Russian realities to gain financial independence.
It prompted me to write this article and heated debates to it.

First of all, in order to avoid the " survivor's mistake " I want to discuss a couple of points:

1. I like this lifestyle
2. There is undoubtedly an element of luck in my life.
3. My path is not over yet, I need another 10-15 years.

So what is this magic term like? - Financial independence.

For me, this is an opportunity to quit work at any time and ensure the family’s usual lifestyle for at least 5 years. In the simplest mode without force majeure for my family, this is possible now, but for this you need to implement the scenario of moving to a small city where there is a reserve property that brings modest income now. At the same time, passive savings will no longer be reinvested and will be used for life, the apartment in the city of one millionth will surrender. The income level will be about 5 living wages for a family of 4 people (two adults, two children). Of course, there is not enough for a luxurious life, but having your own vegetable garden will significantly alleviate the situation.

Now about how my family lives, and what are the foundations of the distribution and use of the budget.

Cost structure

We do not keep home accounting as described in this article because we prefer non-cash payments (why it is written below), respectively, all expenses are perfectly reflected in the mobile application, which is sometimes bought for cash and is entered into the application manually.

Most of the costs as can be seen from the chart and decoding to it, make up travel. However, this is not entirely correct (did not correct), in fact, there are expenses for traveling to foreign language schools with an elder son. In general, training for us is a priority, it is an intangible asset that is forever with us. Training on a permanent basis is mostly free of charge - these are state sports sections and a pioneer house (English, robotics are both sons), there are paid circles for children in kindergarten and school. The training also includes the costs of our development with my wife.

As you can see, the cost of housing is comparable to food, it is connected with the payment of housing and communal services for several properties (our and both parents).

The undoubted priority is health, most of all here is dentistry, especially children’s. Here, as shown by personal experience, it is better now and more expensive than later, and not for what money. Quite a lot in the budget eats cars, it would be possible to refuse him, but he allows you to consistently visit parents, and performs another very important function, about her in the food section.

Nutrition

A lot of controversy about healthy eating and its cost. For us, healthy food, cooked by yourself. When you cook yourself from primary products, you can be less sure about the quality. We never buy products for shares, for this there are large wholesale bases where you can go by car once a month and buy all the necessary basic products.
The absence of expenses distinguishes them from many acquaintances, and this is a very large amount for: alcohol, cigarettes, sugar and sweets. From sweet children eat honey, sugar only when cooking. Dinners are only at home, as you can walk 1 km to work (it just allows you to perform a daily standard of 10 km). Living next to work is not an accident but a purposeful choice. We have moved many times and are always looking for housing next to work, it is better to overpay at the start than it suffers later. In general, living next to work is saving the most valuable time resource.

Things

Here the basic principle is understanding why it is yours and repair naturally. You can buy Italian furniture set, and you can set of Ikea. To whom the first one will indulge ChSV , and in fact both of them will perfectly fulfill their functions, and no matter how much you earn, it's all just an object. Sometimes I see an ad for real estate, apartments are chic and decorated, and furniture is made to order, cheap enough, because people move, and it’s impossible to take it with me. It turns out and did not use the furniture and the money went away. In general, no spontaneous purchases, think about the day why you need it and how you will use it, the euphoria of the purchase passes quickly, disappointment remains for a long time.

We often value our time, many even say "yes, why repair, my time is more expensive, I will go and buy new things", although they spend this time on TV and social networks. Repair is another entertainment, you are interested, children are interested, the creative works. No matter how you look solid pluses.

Income

In addition to the main source of income - work, it is possible to get more money.
Passive investments are divided into IIS , stocks and deposits. Stable and simple, at a given average return on these investments of 7%. There is no need to invent anything, everything has already been invented for us. IIS and stocks are for a long period, a deposit for short ones, as it eats the opportunity to replenish all the time. Here, the main rule, all the surplus, but at least 30% put on the deposit twice a month.
Additionally, money is not earned, but returned, through bank shares (cashback), the availability of RZD Bonus cards, Aeroflot bonus, S7. By the way, miles can often be spent not only on flights, but also on goods. And if possible, in banks, always enter into privileged service programs, there are often free-of-use criteria, and thanks to participation you get additional bonuses, in particular - I have a higher deposit rate, priority pass, free travel insurance for the whole family.

The following important action that needs to be done once a year is the refund of income tax, the list here is very extensive:

You can fill in the declaration in the personal account of the taxpayer, without ever visiting the tax office, but if you’re completely lazy 400 rubles and you will be filled in everything.

All that is not necessary, that the hand does not rise, to throw it away, or it rises, immediately goes to AVI ... Oh, and similar sites to it. We usually set the price we want, then gradually reduce. Everything was sold from unnecessary power wires for the computer to the old film-viewing device. Here, even the principle of 100 rubles is much more than nothing, plus the thought is that you pollute nature less with garbage.
An important point, loans - evil. You cannot accumulate, you don’t need a thing, you can accumulate - save. Put on a savings account at 6% and save even more efficiently. Use profitable mortgage, where you can return as already described above 13%.

Risks

The main risk is undoubtedly country, but the 90s have survived, but now it is much better. Who is afraid for rubles or does not trust the Russian stock exchange issuers, now in online mode you can buy stocks, even though Apple, even Xiaomi.

Conclusion

In principle, I plan to work until retirement, maybe more, most importantly for my own pleasure. I generally like everything for now, just passive incomes make us more confident and independent, and then of course I am impressed by the idea of ​​AML. I treat the pension savings as a lottery, maybe it will burn out, but it’s not our method that feeds on it.

In general, and in Russia you can go to retirement well-deserved rest early, if it relates to life easier.