Thoughts and reflections on the past week or so from my own financial independence campaign.
I realise that I mostly write essay-length features and don’t really talk about what’s happening for me day-to-day. That’s not by design, it’s purely because I’m already living my day-to-day.
Progress on my goals
Boat plan
Our boat surveyor reported that there was a significant fibreglass defect/ repair that needs to be made in the boat we’re looking to live on. That sounds much worse than it actually is!
When we spoke to the surveyor to ask for details, it turned out that this is a simple repair for a fibreglass technician to do, but it has been bodged by an amateur and needs to be redone.
We’ve given notice to the seller that we need a quote and to factor this into the price, seeing as it wasn’t disclosed or obvious to the untrained eye. Not a biggie, just minor delay.
Imagine if this boat was only 37 feet long and significantly more beaten up – you’re about half-way there!
New workplace pension
I’ve emigrated to the Channel Islands where workplace pensions aren’t exactly a given. As of this month, I’m now back on a workplace pension scheme with 5% matching.
Vanguard don’t allow Channel Islands residents to use the platform, so I’ll have to transfer my old SIPP to this new pension.
Fees are marginally more expensive at 0.6% versus around 0.4%, but Channel Islands pensions can be drawn down from age 50 (!). Win some, lose some. I’m considering putting a heavier weighting into my pension versus my normal investment accounts but for now I’ve stuck with the 5% matched to 10%.
Savings rate
I’ve not been so diligent at tracking my savings rate of late, but this month I think I can afford to start being a bit more confident.
I’ve been setting a minimum standing order, then topping up as I get nearer the end of the month. That’s totally fine, but I want to get back on the horse and have the savings rate fully automated again.
My estimated savings rate is probably 50% at the moment, but that’s pure wet-finger estimate.
Distractions and detours
I have added to investments on Crowdcube, despite having said before that I was going to cut this out. The two opportunities I committed to were Go Modular and Pikl.
Go Modular build modular housing to modern standards, which has the potential to relieve at least some of the housing crisis in the UK by providing decent housing stock quickly. I like that their business model goes beyond selling the housing units and looks at selling the factory as a readily purchasable franchise, too. It’s a modern take on the classic prefab housing business.
Pikl are an insurer who offer bespoke insurance product for the short-term rental and gig economy markets. Gig economy and micro businesses – such as letting out spare rooms on Air BnB, or offering your garden shed as micro storage space – are going to be part of the future economy and I like that relatively small players at an individual level can participate in side hustles with the kind of insurance protection that a larger business would enjoy.
Crowdcube have recently offered access to Octopus’ venture capital funds, subject to final details. Normally an investment in a VC Trust (VCT, VC Fund, all words for generally the same idea) requires a minimum £5k buy-in. As a small investor, I’ve not been willing to commit that large a chunk into these high risk investments because it’s hard to get an appropriate weighting across all my assets. However, the new Crowdcube proposal is to offer access in chunks of £500 at a time, which is much more appealing because I can better manage the weighting of my total portfolio. I’ve put my name down as an interested party, not committing until I know more.
Non-FIRE goals
I’ve started learning guitar
I’ve started investing in myself recently with guitar lessons. They’re great!
I’ve tried teaching myself guitar before but it always failed, partly because I was a drummer first and I kept finding opportunities to get back into that instead. Now that a) I live in lodgings, where I have no space, and b) I’m about to live on a boat, with just as little space, drums can’t be a big part of my life anymore.
Guitar lessons cost me £40 for an hour each week. I get a lot out of them, my playing is advancing fairly quickly and I find I can get into flow playing it and not come back down to Earth for an hour. When you factor that all in, it’s not £40 for an hour’s entertainment – it’s £40 for the five or six hours per week, which is suddenly much better value.
I’m VHF Radio qualified!
I passed my RYA Short Range Radio course and now I’m just waiting on the licence to be delivered. That’s pretty cool in itself and it’s vitally important for sailing safely. If I need the Coastguard, I definitely want the ability to call for them!
My flights are booked for Download festival next month
I’m off to Donnington Park for Download festival this year. That’s now all paid for or otherwise budgeted and it’s only a month away. Nice!
My Day Skipper course is booked
I managed to find a compressed RYA Day Skipper theory and practical course for this year, so with any luck I’ll be fully trained to skipper the new boat by the end of the year.
Well, in coastal waters. There’s a whole Yachtmaster progression scheme that follows if you want to take it up a level. For insurance and legal purposes, when we eventually travel longer distances, I’ll be qualified if I pass the Day Skipper bit.
In case you’re wondering about the viability of the boat plan: my partner is already qualified. I’m the newbie, she’s very experienced. This is usually the other way around and it’s hilarious seeing the double-takes from the sailors we speak to.
My financial independence campaign continues!
