No reason to have a blog about financial independence with out providing some sort of financial overview of the blogger – right, so we might as well get to it.
First a bit of background information about this blogger, so you have some sort of context to put it into.
Basically, being “middle-aged” means that I have been full time employed since I graduated as an economist from Copenhagen University in 2004. This equates to a 15 year “corporate career”, which off-course will be reflected in the “current” financial “status”.
Being an educated economist, will also give you some sense of where I get my interest in personal finances, financial independence, capital accumulation, and saving vs. consumption choices.
So here goes; I currently earn 70K DKK monthly. (~11K USD) and on top of that there is an employer retirement contribution of 11%, as well as a target 7% bonus scheme
My wife roughly has the same base monthly income, but as this is my blog and not hers, no need to dive deeper in to that for now.
We have a completely shared economy, and our salaries actually comes in to the same shared bank account. (Goodbye personal finances, hello shared economy and consensus driven spending choices :-)..)
For all you globalists out there, living in Denmark will bring you a rough tax rate of 50% of the above mentioned monthly salaries.
All in all, this brings the available monthly pot of money to ~70K DKK, after tax which can be used to cover the needs and amenities of the combined family of 5, as well as used for capital accumulation.
I have for a long time tried to put myself, and hence my family, in a state where we try to save roughly 50% of our take home pay, in order to build some sort of financial independence, and onto a road of earning passive income enough to potentially retire a bit earlier then the current retirement age for someone in my cohort in Denmark (fun fact: it is aged 71 for someone born in 1977, and apparently now the highest in the developed world.)
Aiming for a personal savings rate of 50% brings a need for personal and family prioritization, with respect to the “big” life choices, as well as all the daily spending decisions.
Having spent 15 years in various corporate jobs have also taught me a couple of life lessons. I have experienced my share of job changes, I have experienced being laid off, I have experienced companies being merged, with following “voluntary” redundancies etc etc…so basically – there is a reason it is called the 1% or even the 0.1%. It doesn’t happen to a lot of us.
But that also just means, that if you want financial independence then you probably just have to reach it by yourself, with the means you have available to you.
That is my goal.
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That would really be helpful, as I am trying to write this blog anonymously. Thank you 🙏.