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.

Photo by Anna Nekrashevich on Pexels.com

The Month Has Come to an End

So, November month is over. We celebrated 1st of December yesterday. I like to make a little review from the passed month and get myself a new intentional plan.
If there is something I am learning is that without a plan in action, I do nothing. I cannot just do things if there is not a plan set. It is kind of a revelation, as I thought I was a woman in action. Buuuuut No.
There are too many other options out there that distracts me and I fall for them, all the time.
My head is already full of things and I think I suffer from decision fatigue, so this is the way I have managed to get things and I will keep it.
So.
November, has been both a hard and easy month.
Easy in the sense that the work-outs I am doing is really starting to bare fruit. I am noticing nice results and I can feel after each training that I have progressed.
Hard in the sense, that to find the motivation, in the dark and cold is really hard to work with. Not even the motivation, the determination. I just feel like I want to watch a movie and drink coffee all evenings long. Just the fact that evenings starts already at the afternoon now, at 5pm it’s pitch black.

I had as a goal to walk 1 hour a day during day light.
Did not manage. I just did not want to wake up. I have been walking every day, on average 1.56 hours but not in day light. I walked less than during October, but I am quite OK with this anyhow as the darkness and cold is quite overwhelming this year.
Work out 5-6 days apart of walking.
Did not manage again as I just want to drink coffee and sleep. I did 4-5 times which is OK but I think that a solid 5 should be better to have. It has been hard too, as neither are the pools, nor gyms open and in wet cold weather it is getting harder for me.
Add 30 min daily for self development activity, or enriching skills I already have.
Hahaha. Did not happened at all. I have done maybe 30 min per week. I just did not plan enough around this. I totally did not.

A lot of it has been me blaming the weather, mood, temperature. But it is just that, I blame something. I need to stop this pattern of blaming. If I want something, well then I just need to do it. No one will come and give it to me, and honestly I would not want it anyhow, not anymore.
I just need to focus, and do it. Hence the lists. I have started with daily lists of what to do, to add some clarity to my days.

So plan for December is:
Walk 1 hour a day in sunlight. Does not need to be one hour straight, but in total. It is important to be out and see the sun. It gives me energy.
Add Vitamin D to my routine of food.
5 Times a week with different trainings than walks, should be easier now as gyms and pools can open from this Thursday.
30 min of working on skills, or self development 3-5 times a week. Every day I guess was a bit ambitious. 😀

So, Let December Commence!