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| What Works for Me is thinking with caffeine |
Financial Independence
I am very clear on what I want. I don’t want to owe anyone, and I don’t want to be anyone’s slave. For the past ten plus years, I worked my butt off to build a cushion that ensures my peace of mind. It’s not always easy but very doable. My first priority was financial independence which I define as being able to live solely on investments. Keeping a job because I love it; it builds on my intelligence; it’s not standing in the way of my happiness, and all the nice phrases that come with job satisfaction. One of the nastiest things I had to witness in the workplace is people fighting for promotions and bonuses. It’s amazing what 10 years or less of hard work can buy. I would rather work on my investments than being desperate to fight for a job.
Time is Money
Starting your wealth building journey early is better than investing bigger lump sums of money later. R500 per month now earns way better returns in the long run than R2000 in five years’ time. Start already. After taking the decision to start, keep at it. Remember your key term “compound”.
What is Really Important?
I’d say for me building and maintaining my emergency fund is right on top of my list of money priorities. I hate feeling helpless when things don’t go as planned. We depleted our EF at some point and are still working on building it. It’s not helping that your expenses grow with yourself and inflation. If I had consumer debt, I would have that as the very first item to tick off my priority bucket list. Then there is retirement. Everyone has to save for a comfortable retirement. As we age, we get to be extremely expensive. Higher security and care needs. And off course in my case, there are parents and parents in law. We try to help ensure that they are comfortable.
Together we can Do More for Real
The only way to do this is involving your partner. On the background is a TV program with a troubled couple as I type this post. The wife has to hide all her credit cards and cheque books from her husband. They have been married for a whooping 16 years. The financial coach told the woman to actually get a divorce because he will never change. I doubt if he is working on changing either. He is adamant that he can change, whilst he got into the marriage with a huge debt he never declared and continued to spend every cent he earns and some more on big boys toys. I had my hands on my head because this situation is never going to change until he loses this woman. And the truth is that she also kept trying to sort him out for far too long without serving him with tough love. As for you and me, we are never going to achieve much without involving the spouse and kids.
Sacrifice for Extras
Whether it’s a holiday, a smartphone, a piece of furniture or a new car that you want, save more for it. Create a saving pocket and pour whatever extra you have on that account. Nothing drives me more than a goal. I am a typical goal driven person. I commit my money in order not to use it. If it’s already in my investments or money market account, I lack guts to withdraw it for unnecessary expenses.
I'm aware that what works for me may never work for you.
All the best,
SISA
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