Let me start this post with a quick update and an explanation. 

I haven’t posted here for a while, because the company I work for is closing down.

In some ways, this is bad news. Although I won’t finish working for a while yet, not having a job but having a baby is not an ideal combination. And then on top of this, the coronavirus outbreak has surged, with thousands of lives tragically lost and unemployment rates soaring around the world.

man in blue and brown plaid dress shirt touching his hair
Photo by Nathan Cowley on Pexels.com

But I am calm. Thankfully, I have always been prepared in case I lose my job. For some time I’ve been saving money away in a bid to reach financial independence. 

This is what JL Collins calls F-You money. I might not be financially independent yet, but I can live without a job for a fair amount of time. Thankfully, the measures I took will keep the wolves from the door for a while. 

And then the stock market crashed. The FTSE 100 has lost about 30% of its value, just after I moved from holding 20% of my portfolio in bonds to being 100% invested in equities. My investments lost 20%.

Am I worried?

Strangely not. Let me explain

In the UK, like a lot of other countries, we are in lockdown. We can only go out to buy essential items, for one bit of daily exercise, and to go to work if you can’t do your job from home. And that’s it.

Some people have taken this badly. Cabin fever has set in, and they have watched most of the content on Netflix. 

However, being an eternal optimist, I’m looking at this as a way of exploring financial independence. I’m loving it.

I get to spend time with my wife and baby. I’ve cut out the daily commute. I can do jobs around the house that I wouldn’t have time to do normally. We are using the car a lot less, walking a lot more and no excuse is needed to avoid restaurants, cafes and expensive days-out. I don’t think I have ever been fitter, or happier, than I am now. 

This has also seen my savings rate for this month increase to 54%.

According to Mr Money Mustache, this could mean that I’ll reach financial independence in roughly 15 years. I just need to find a new job…

With the market falling the way it has, this could be a great buying opportunity to purchase stocks on sale. In years to come, I have hope that this will just be a dip of the chart like the 1987 crash is now. In my eyes, this is now a buyers market.

In the words of Warren Buffett, I am being greedy when others are fearful.

For those of you who seriously concerned about the financial crash, here is JL Collins’ meditation on a stock market drop.

Follow me on Twitter @swearingmoney

***The information contained herein does not constitute financial or other professional advice and is general in nature.