This is a blog about financial independence. But I never explained what it means.
Being financial independent means, that your decisions are not clouded by thoughts about money.
So in a way being rich has nothing to do with being financially independent - at least not if all you can do is to think about how to get more money.
Earning a heap of money every month has nothing to do with financial independence - at least not if you need all of it to support your style of life.
Living about your means until you are broke has also nothing to do with it. Your decisions will be quite clouded with money after a while.
So being independent is as much about courage as it is about money. It is as much about just living your dream - as fast as you can - and not waiting for 30 years earning piles of money in a job you hate.
It is about you taking control of the money. About using it as a tool - not as the main compass for your life.
It is about really thinking about what you want to do with your life. And doing it. And not waiting with it until you are too old.
You may need some money to do it, but for me - it is courage that is missing. The money ist not the problem 😉
So fuck the money. Time to live the dream - not in 10 years. But today.
Did you get started with a YNAB budget?
If you are in the lucky situation, that you were able to implement all of YNAB rules immediately, then this article is not for you.
If you are like many of us, you will have problems to live on last month's paycheck. And you will have some credit card debt.
Time to do something about it!
Most financial books are intimidating for beginners.
I just discovered a wonder weapon, that I will recommend to novices.
The Wealthy Barber a story of 3 young people getting financial advice from a barber.
The rule of 72 is a rule that can answer you the question: How many years will my money need to double for a given interest rate?
Do you live from paycheck to paycheck?
Is your debt getting bigger and bigger?
You constantly worry about money?
That sounds like me a years ago. Until I started to budget.
Today I save more than half of what I earn. I am quite confident that I can retire in less than 15 years.
Whatever your financial goal is: A budget can help you reach it! No self-deprivation involved. Just you telling your money what to do.
Today many products have only one use. Waffle irons, rice cookers, fondue sets, popcorn makers, toasters..
While many of these appliances are quite good at what they do - I do not use them on a regular basis. They are wasteful.
I life in a small flat and I do not want to waste money - so I love to have only a few items with multiple use.
I do not read advertisements. I would spend all of my time wanting things.
Often I feel bad after watching an ad, reading an article about the next health gadget, after watching Apple keynotes or browsing on Amazon.
I feels like I have a hole in the stomach. I have to fight internal fights. Shall I buy the thing I didn't even know about a few minutes ago?
I drink a lot of tea and coffee daily and after a few months of heavy use my first electric kettle stopped working.
One has to have an electric kettle. It's so energy-efficient and fast. - right? So I bought my second electric kettle.
This time it could heat water one cup at a time - it also could produce water at the exact right temperature for green tea. At least - until it's cables started smelling and we got really worried that it might start to burn.
Subscription burn a lot of money over time. Money that I'd rather spent on something I like.
So here is a simple solution to it - "The subscription clean-up"
The best things in life are free. Never forget this.