Part 73

Hello and welcome back to Mortgage Advisor on FIRE   A shortened version of the blog this week as I have not been feeling great following my first Covid vaccination.  

Quote of the Week

It’s been a while since I talked about the definition of FIRE.  Financial independence is all about having enough income from assets you own or control so that you do not have to exchange your time for money.  There are different levels of FIRE, and many different names given to them such, as financial freedom, financial stability, financial opulence, Lean FIRE, Fat FIRE and several more.  

The first step for anyone wanting to be financially independent is to achieve financial security, or Lean FIRE.  The generally accepted definition of Lean FIRE or financial security is that your basic living costs are covered by income from your assets.  The income will pay for all the basic costs of living but no more than that.  The reality is that most people in this situation will probably still have to work to pay for luxuries.  Achieving Lean FIRE means that even if you leave your job, you still have all your basic expenses covered.  My Lean FIRE number is around £1,000pcm.

For me, Lean FIRE is not the end game but rather the first milestone on my journey.  Ultimately, I want financial freedom.  This means I can do what I want, when I want, within realistic restrictions.  My current standard of living is a good basis for comparison with little debt, and the ability to go on several holidays a year.  If I could maintain this standard of living purely from income from assets, I would be delighted.  My Fat FIRE number is £1,500-£2,000pcm.  The more income I achieve, the more holidays I can take.  

When I hit the figure for Lean FIRE, or even Fat FIRE, it does not mean that I will definitely give up paid work.  It means that I will have the choice about whether to work.  It means I will have the power to say no to any work I don’t want to do.  That’s what financial freedom is; it’s not the freedom to buy whatever you want.  It’s the freedom to spend your time how you want.  

Weekly Update

I had my first dose of the vaccine this week, the AstraZeneca version.  The organisation at the Sheffield Arena was fantastic and the way that this vaccine roll out has been handled should be a source of national pride.  However, it does not balance the scales with respect to all the incompetence and dodgy dealings from the Tory government that have led to the needless deaths of thousands of people.  

After having my vaccine I felt fine until about half an hour after.  Then I started feeling a little cold and developed a mild headache.  I spent the afternoon relaxing but then at around 10pm I started shivering and shaking pretty violently.  I was shaking so bad that I could not hold on to anything like my phone or a strip of paracetamol.  My whole body was just out of control and I think I pulled a muscle in my back.  I was having cold sweats and feeling dizzy and faint.  In many ways it was like a migraine but without the skull crushing headache.  Another unusual side effect was that my whole body was tingling a little bit like pins and needles but not exactly.  Also, all my skin is sore.  Anything that touches me, even my clothes, is slightly irritating.  It’s all very strange.  

Despite all this, I am grateful to have received the vaccine.  These are just temporary side effects, and many vaccines have side effects.  I was not sure whether to mention these side effects because I do not want to put anyone off having the vaccine.  However, I thought it important to make people aware that these side effects are to be expected and that they will only last a short time.

2021 Goals – to be achieved by 31/12/2021

1 – Reduce weight to 92.8kg.

2 – Finish 104 new books.

3 – Complete RO3 for my DipFA.

4 – Complete RO4 for my DipFA.

5 – Complete RO5 for my DipFA.

6 – Complete RO6 for my DipFA.

I have finished The Testaments by Margaret Atwood, the sequel to The Handmaid’s Tale.  It was a good story and well written, but it just seemed to lack something that stopped it from being a great book.  I’m not sure what that missing piece is, but it does feel like a little something was lacking.

I’ve moved my exam back a week for RO3 because I’ve not kept up with the revision schedule.  This is in large part due to how I’ve felt with the vaccine.  It cost me a few days of study so I felt it wise to give myself some breathing space.  

The Owlstalk weight loss challenge is still ongoing and you can donate here:

https://www.justgiving.com/fundraising/owlstalk

Financial Update

Assets

Premium Bonds: £275.00 (up £125.00 from last update).

Stocks and Shares ISA: £21,142.42 (up £9.19 from last update).

Fuck It Fund: £100.00 (up £60.00 from last update).

Crypto: £277.95 (up £157.48 from last update).

Residential Property Value: £194,909.00 (no change from last update).

Buy-to-Let Property Value: £125,775.00 (no change from last update).

Total Assets: £342,479.37 (up £351.67 from last update).

Debts

Credit Card: £0.00 (no change from last update).

Residential Mortgage: £140,665.49 (no change from last update). 

Buy-to-Let Mortgage: £93,163.50 (no change from last update). 

Total Debts: £233,828.99 (no change from last update).

Total Wealth: £108,650.38 (up £351.67 from last update). 

Investment Income in 2021: £4.14 (target £5,000).

Not a huge amount of change this week with the stock market being pretty stagnant.  My monthly subscription into my ISA will not take place for another two weeks, with my mortgages being paid around the same time.  The biggest development is that I should be seeing my first instalment of rent from my BTL early next week.

That’s all for this week.  Apologies for the shortness of the post this week.  The next post will be back to normal.  

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My Instagram is @david_scothern and my Twitter is @advisoronfire. You can also email me at mortgageadvisoronfire@gmail.com.

Also, please check out my cat’s Instagram @sweep_the_kelham_island_cat

Finally, have a look at Darren Scothern’s blog at darrenscothern.com.

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