It feels like 2017 was starting yesterday and we had the whole year ahead of us with financial adventures. Since then days are just passing by and it feels like months are like weeks, we can confirm one thing, time does not slow down. It is therefore important that we once in a while take some time to stop and think about what we have actually been doing and highlights of the year. Otherwise 2017 might just become another blurry year in our lives.
December is a dreaded month for many with all the expenses expected to come. Suddenly it feels like we know tons of people and family just keeps multiplying with siblings and cousins having kids. We hear more and more grown-ups saying that “This year we will not buy any Christmas gifts, only for the kids.” In the end we tend to buy just one small gift anyway, and we do this because there is something more to Christmas than just spending money, there is something beautiful of giving a gift to someone you care about, to see their excitement and to be able to be the reason to put a smile on their face on that day. Personally I love gift giving and I’m a strong believer that Christmas doesn’t have to be expensive.
For me financial freedom is when you are not limited by your finances, you are able do what you want and your finances won’t be the reason you’re being held back. Financial freedom is, however, personal and different from person to person. I’m writing this post based on my definition of financial freedom and even if your definition might be different I’m sure that some parts can relate to your journey towards financial freedom as well or it might inspire you on the way.
Financial freedom is a topic that many have talked about. A lot can be said about it but for me it is very simple and basic what it implies. For me the essence of financial freedom is to not being limited by your finances. I’m sure that someone out there is thinking right now that it would be nearly impossible to achieve financial freedom if that is the case because if you’re not limited by your finances you need enough money to be able to buy everything there is to buy. It is true that you would need to be extremely rich to be able to do that, however, when I’m saying not being limited by your finances I don’t mean that you should be able to buy anything just for the sake of being able to buy. What I mean with not being limited by your finances is that you should be able to do the things in your life that you want.
We can talk about saving all we want but talking certainly won’t make any change, it is time to do something about it! We have reached level three in the aggressive and meanwhile level one and level two focused understanding our potential to save and becoming more aware on what we spend our money on and what we want to spend our money on, level three is about taking action.
We have reached mid-September and it’s time to step up our savings game. In the first week we explored different types of expenses that we have, necessity, want and waste and this week we are going to take a closer look at the want. Before we do that, let’s quickly recap from the first level. We started with understanding the concept of our potential to save. Our maximum potential means that we are only spending on necessities, expenses needed for us to survive. This might result in a lot of money in our bank but it’s not necessarily the optimal way of living our life. Expenses within the category need, investments that gives added value to our life also increases our life quality and a certain amount of want is worth more than the money we would save. To live a good life we need to find the right balance between saving and investing in wants, to find this balance it is great to experiment with the level of savings on the scale of your potential.
If there is a time of the year when you should spend and enjoy it is summer. It is not an excuse to waste money but it is a good time to do what we really enjoy in life. It will of course drain our savings a bit and to make sure that we don’t have to worry about it we first need to fill up our savings to be prepared. The summer season is about to end and we have all the time ahead of us to prepare for next years round of summer spending. Therefore, we are going to focus on an aggressive savings training this month on #FFF which potentially could change your perspective of saving for the time to come. Through different steps each week you can gradually increase your savings intensity to finally reach your full potential.
Do you get that special feeling at the end of the month, that feeling of excitement and happiness spreading through your body and mind? That feeling you get when salary day is coming? Money certainly creates a lot of emotions in us, it can be happiness, sadness, stress, calmness, but can it also be love? Is losing your job, hence your source of income, just like a bad break up?
It is not always the case that big spenders have a more unhealthy life, but it is often the case that people with unhealthy lives spend more. Your finances and your health are connected in more ways than you might think and bad spending many times are also bad for your budget. Taking care of your finances are equally important as taking care of your health and neither should be neglected.
This week on #FFF I would like to introduce all of you to a new concept that leads to financial success, I would like to introduce you to cheap karma!
What is Cheap Karma?
When you have adopted a financially sustainable and aware lifestyle where you cut unnecessary costs by actively evaluating and looking for cheaper options,