Familiar feeling. I didn’t manage to sell in time myself, and in the 2008 chaos, I sold everything, decided to spend the coins, and forget about investing. The worst financial decision of my life.
Now I’ve been investing again for the past year with slightly better success.
The same 20% of net income into index funds monthly still applies, which will continue to be the minimum savings rate that should, ought to, and must keep rolling. The investment strategy is and remains unchanged. When the finish line is still far off and the path there is clear and open, I won’t change direction to forest trails in the middle of a marathon.
I examined my average savings rate from net income over the last 12 months and got a figure of 51.3%. I notice clear growth here, which naturally means that the savings rate has only increased as my salary has risen, which in turn indicates that I haven’t been able or haven’t wanted to raise my standard of living.
At the same time, it also provides a good picture of what kind of sum I could live on someday, if or when an “accidental” FIRE (Financial Independence, Retire Early) opportunity opens up. In the current situation, €1,200 net would be the amount I live a quality life on quite contentedly; everything above that could easily be set aside. Whether that holds true in 15-20 years is a different story, but one I don’t need to stress about one bit.