My Net Worth Status- Half-year Mark 2021

As you all probably have understood, this has turned into so much more than just weight loss and its journey. I am tackling life and all of its aspects to find the root problem of my weight and fix it.
I have been able to identify few things that make me overeat and one of these things is:

My finances and money!
It gives me great deal of anxiety.

No let me take that back.
It used to give me a great deal of anxiety. The stress that I felt often ended in me eating.
At least that was something I could control. It felt like I had no control over my life and finances and that it forever would be in disarray.
Of course did I have control, it was only an awful negative feeling, that was cemented inside me.
I would forever be poor and I would never be able to get out of the rat race, never be able to go on holiday, never be able to retire, never be able to do anything.
Things did change though, and I read books and watched videos about money and how to manage it.
Today I am no longer feeling this black pit in my stomach, due to my finances. I have really shaped it up quite incredibly.

I sometimes visit the same old thinking patterns and stress out and get anxiety, due to absolute doomsday thoughts.
Losing jobs and ending up homeless and needing to live off the grace of stately support.

I have less and less of them though, and it is both a relive and strange feeling.
My plan all along though is to grow what I have.

Where Am I Today?

As I have written before, I did manage to get my emergency fund in order. This means that I have 6 months of living expenses saved up.
Thanks to this one, I was not stressing myself to death over the forgotten phone while in Spain and I know I can go on holiday in peace using some of it.

At first I this was my only goal.
This was the end goal. Knowing that I would have this fund and that would be it.
During my period of saving it up, this has changed. As with everything else on this journey 😀
I have a deep feeling that I want more and I need more in many sorts of ways.
So as of today, I do have my emergency fund and my sinking funds.

I have officially reached and crossed the 100 000 line.

goal lettering text on black background
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– No this is not dollar nor Euro but Czech crowns, so maybe not as much as some but for me. Hell yeah!

I am so incredibly happy and proud of it. This has really helped me a lot in reducing the level of my anxiety.
It is quite interesting though, as when I started this transformation this amount seemed so high and totally a fortune, now it seems like just a small dent of a fortune.
Especially as I made a decision though to add more money into my fund, I am opting for 12 months.

You Cannot Save Up Wealth- This Is What I Do Now

I live pretty frugally.
I live below my means and I do save a lot today.
I look at things and wonder if I really need to get or buy an item or if I can do without. Pretty often it means that I do not buy it, as I realize I can be without.
I do not let the lifestyle inflation eat up my pretty good paycheck.
I can save quite a lot of money, and I really enjoy doing it. I do not think it will likely change anytime soon.

What I do not think though is that one can save up wealth.

I do not want to cut back on everything and save 70% of my paycheck. That is not what I am looking for.
My latte for 2 euro a cup, will not bring me wealth if I cut it down.
Do not get me wrong, cutting back and making sure I did not use more than I got helped me a lot. For sure.
But where the real work began, was a good paycheck that made it possible for me to save up bigger amounts.
But the good paycheck just takes me one step.

The same as the latte cut back will not make you rich, saving from your good paycheck will not make you either.
Obviously some exceptions here, but I am talking about us regulars with normal wages.

I believe in investing.

photo of person holding smartphone
Photo by Anna Nekrashevich on Pexels.com

I think that to build a bigger net worth I have to invest. Of course, now comes the crux; what the hell to invest in.
By the end of 2021 I want to have reached and crossed the 250K line. I got 6 months more to go and quite a bit to go.


What is your best tip and what to do to make this happen?

Lifestyle Inflation- Do Not Stress Over Money With This

I have written about my start in improving my financial situation. You can read about it here.
However it was not an easy and straightforward transformation to actually care about my financial life, my budget, tracking it and actually sticking to it.
It took me a long time to see the value in it and see how it is holistically connected with other parts of my life. 
I felt it did not matter to budget, track or save. Every cent I had was needed somewhere. The money I got was the exact amount that I needed to cover my life.
Budgeting and tracking made no sense, so why do it? 
It would make sense though, once I started to earn more money. If I would have 1000 more that would do it. Then I could save.
Oddly enough, even when I got that 1000 extra it did not help. I found something I needed to spend that on so 1000 was not enough to save. But probably 5000 would be enough. If I would have 5000 more, I would for sure be able to save. It was never enough. 
So I had to look for more students to teach, more translations to do, and just more ways how to get those extra 5000 which I needed which left me working 12+ hours a day, as the rule and not an exception. Thinking back at it, I feel sad about it and how little time with my daughter I had. Spending it working and working. Each hour I increase, my stress and anxiety also increased. Never having time to fully recharge. I could not see how it was all hanging together.  How one part of life, influences the other. 
Only thing I was wondering was how come did I never have any money? I had those 5000 extra but I felt that I had less money than ever. 

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Never Having Enough Money- Lifestyle Inflation

 Many live their life like this. First time it hit me was when a friend of mine had her credit card declined. I could not understand it as I knew that her salary was in the 6 figures.
How could she have no money?

Lifestyle inflation happens when your expenses increase along with your income. As earnings increase, it’s natural to want to buy a better car or take another vacation. After all, it seems feasible. But if your savings rate isn’t at least keeping up with your rising expenses, you could end up worse off compared to when you earned less.

https://www.forbes.com/sites/kristinmckenna/2020/06/22/the-true-cost-of-lifestyle-inflation/?sh=720381212423

How I Started to Say No and the Path to Financial Stability


This was exactly what also I did.
I had a decent salary but still a deep pit in my belly every time I needed to buy groceries.
Would there be enough money in my bank account?
I very often felt that it did not matter how much money I received as it all only disappeared. How was I still struggling paying rent when I had more money coming in than in the past? It was obviously a rigged game and I was the loser.  This was my excuse. I did not want to look myself in the mirror and see what I did wrong. 
What made it change I do not really know. Somewhere the transformation towards a healthier mindset commenced. 
Maybe had I had the feeling of being sick and tired of too long? A life revolved around anxiety and stress and pushing it away with, mostly, food.
The humiliation, stress, worry, and sickening feelings had grown enough big. Something just had to change. 

I started to finally say no.

My Fully Funded Emergency Fund!

As some might have understood by now, I think finances are a really important part of life.
I believe it is imperative to have my finances in order to be able to keep my emotions in check and therefore not do the emotional eating things I have going on.
I have struggled a great deal with my finances, and about 1.5 years ago I decided that enough was enough and decided to make changes for me to get some financial stability, stop living paycheck to paycheck and ultimately reach financial freedom. You can read more about it there.
Today I am celebrating a big milestone for myself.

My fully funded emergency fund!

What Is a Emergency Fund?

It seems like the word emergency fund has a different meaning for different people.
I will tell you what is my meaning for it.

The term “emergency fund” refers to money stashed away that people can use in times of financial distress.

https://www.investopedia.com/terms/e/emergency_fund.asp

At first, I thought of an emergency fund as monthly income and I just could not understand how I was going to save up to 4-6 months of monthly take-home pay, that would take me year to save up monthly take-home pays.
I have really left that notion and put different definition to the word.

Emergency means just that, it is an emergency. What do we do when in an emergency. We need to make sure that our basic needs are covered for. Not the extra charcuteries or nicer coffee.
For me I decided that these four things would be my base of my fund:

  • Housing
    • Food
    • School
    • Transport

I went thought my budget tracking for the past 6 months and looked what my cost had been for these categories were.
This amount is what I needed to save up to create my emergency fund.

Why Do You Need a Emergency Fund?

For me, emergency fund will not be used for leaving for vacation; buying clothes; getting a bike or whatever things you can imagine.
These are saved for in my sinking funds. Read about my sinking funds here.
Emergency fund is exactly for what is sounds like.

Emergencies.

Emergencies will come. That is the only thing I really know. Flatmate moving out; job getting canceled; health problems or something else unexpected happening.
These are the reasons I was so focused on getting the fund, funded. I have had quite a lot of emergencies happening to me and I have felt like one step from total disaster.
Money can not bring you happiness they say, but I am for sure more calm and happy with the knowledge that I have this money on my bank account.
I have gained such a calm knowing that I have what I need to live OK for 6 months without any other extra income.

6 Months. No other money coming in.

I struggled to live from one day to next, in the past. I am so relieved now. Such a weight lifted from my shoulders.
It also gives me a freedom to say NO. I do not need to say say anymore to everything that comes my way, workwise. I can pick in a different way, as I do not need it to survive today.
I am surviving already. I wish for everyone to have this feeling. I wish for everyone to have this security and the best thing is: if I can do it, anyone can.

Am I Done with My Financial Journey Now?

Not even a little bit.

I am a freelancer and that comes with benefits but as with everything also some drawbacks.
One of them is my pension. I will basically not have any, unless I work for it myself.
No state coming to rescue me.
I will need to work to get it myself and I am not planning to be a poor pensioner. I am not. I have done poor, and I am planning a different future.
As I am single, I will also need to have a look in the mirror regarding housing. I know I will not be able to rent, once I am a pensioner and I know I need to do something regarding that. For that I need money.

I am not only thinking about my future though. I really want other people to have it good, and I want to be able to give more than I am able to do now.
I want to work improving other single parents lives. I need to have enough to be able to give and share so that others who are not in the same situation can seek help somewhere.

I have plans and these includes money, so my financial journey has just begun.

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