About Plutus' Normative

 

My name is RAE. I'm pursuing financial independence. This is a simple, no nonsense account of my journey.

I'm doing this by minimizing my costs, maximizing and diversifying my income, and investing the balance. In mathematical terms, it's a simple equation:

Net Worth = Investment Return * [$(Income) - $(Expenses)]

Of the three constituents of this equation, 'expenses' is by far the most important bit. I don’t live poorly or cheaply, just below my means.

On paper, financial independence is quick and easy to obtain if this equation and all its constituents are understood well. The Mathematical Thesis behind my endeavor explains why.

The Investment Thesis outlines how and why I invest the way I do. The methodology is fool-proof and beginner-proof, as long as you understand why.

I call this endeavor Metrical Minimalism. It's minimalism, without the hippy-ness. Metrics that measure how effective or ineffective my version of minimalism is are crucial, and there are only two of them. I found that I needed a better system to track this. It's still a work in progress.

I track my Portfolio Performance, which is mostly on auto-pilot. I update it once monthly, and re-balance it yearly. I still re-balance my portfolio yearly, but I only update this page (and therefore my portfolio performance) when I re-balance. This is mostly because I found updating it monthly a chore.

If it helps, The Philosophical Thesis tries to describe the method to my madness. I didn't put it together overnight, either in my head or for the purposes of this website.

My Blog contains my musings about financial independence, investing and other miscellaneous things. It’s mostly just a place for my thoughts that are well-formulated. For those thoughts that are not, I keep a personal journal until I sort them out.

I currently reside in Canada.