January Review- My Way to Financial Independence

As mentioned several times before. Money has been a huge source of stress for me the for a long time.
This changed this past year.
I made a very conscious decision year and a half ago to change my situation and to work toward financial freedom. It has helped me tremendously!
From being a basket case whenever I have just been thinking about my financial situation, and the feeling of hopelessness to where I am today.
I can do this.

I have decided that I will reach independence and that is it. Not in a week. Not in a year. Not in 10 either. But I will. I will live safe and comfortable. Actually I already am. Budgeting had really helped me with that. I already chose what I want out of life and my budget is just helping me reaching it.

How I start and go about my budget


So at the beginning of my financial month I posted about the start. Let us now have a check how things actually went.

As I wrote I do not go filling in my budget as I go. For each income I receive, I spread them out in my budget and how I want to spend it.
Even if I know I will get the money, I do not add it into my budget as I have learned from the past, that even if you are expecting the money something might happen and it does not come.
So I only add it when I can see them deposited into my account.
Then I assign that money into my categories. I always pay my needs first, and once that is covered I cover my half needs and the last my wants.

Needs Vs wants and that odd half need
  1. Needs- The first I add money into. These are the expenses I need to pay to cover expenses which I cannot chose to pay or not.
    This is such as Rent. Phone. Health insurance. Social insurance.
    I cover these things absolutely first as then I know I am done. In worst case scenario I have at least roof over my head and if I get sick I can get well.
  2. Wants- These are the things I want to pay for. The things I do not need to cover my life but to add that little fun in life. The ones which makes life fun to live. These are things such as Clothes. Bags. Phones. Books.
    All the fun fun fun things.
  3. Half- needs- so what is this about then? Well these are the things that I might not have to do or maybe not always want to do but a little bit of them both at the same time.
    Food is not something I maybe want to do, neither is it something I maybe have to get either every month a lot of as I do have quite a big pantry and freezer.
    Savings are maybe not either something that I do want to do every single month, but I do it anyhow. Workout is the same. want tor need? A half need 🙂
savings- what i do to get rich

OK maybe it is not right now to be rich but for a future independence for sure. I try to manage it that way so I can save about 30% of my income. More than that is not really feasible as I do want to live as well. I enjoy to go for walk and have a coffee of a hot drink. That is all we can do, and I do not plan to skip it. unless I do not reach the 30%.
I did great this month with this, and my emergency fund is almost fully funded. I was able to put in some 10k(czk) into it and I am extremely happy.
House payment- which is for a down payment is still empty but I want to get my emergency fund full before I add into this category.
Sinking funds- Not really savings in the long term but more for the short term and this is not really into my financial independence but I somewhat count them in here anyhow. They help me live stress-free so anything that does that, goes for me.

the real independence building

This month was the first where I actually planned for and executed my new plan. I have officially started investing in stocks and signed up for a retirement plan. I know. I am 35 and I have had nothing like that.
The plan was to live for free in the flat we purchased in Bolivia and much further than that we did not come in our retirement plan. And anywho, that plan failed miserably. Finally did I feel I had enough of saved things and steady income to be able to really do something.

When is enough?

I am extremely happy with January- February result. So when is it enough? When will I feel independent and safe? I ask myself this very often.
I do not know. I am constantly scared that something will happen and I will be left living on my savings and then it is not long before it goes away.
Therefor am I looking into how to save more and better.
I have a number in my head, that when I reach this I can start relaxing and not stress out over losing work or how to survive.
It is 1 000 000 czk. Then maybe. I will aim for this. I need to work hard and be focused but I will reach it.
And now we erase this and start all over for Feb-March

What is your goal?

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