Embracing Financial Freedom: My Journey and Insights
Throughout my life, I've embraced an open dialogue about money, which led me to create this blog and podcast. Here, I explore various aspects of finance that pique my interest, delving into conversations about money that matter to me. While I usually refrain from sharing my personal financial figures on my platform, I'm genuinely open to discussing them via email. This transparency often serves as a beacon for others, allowing them to gauge their own financial journeys and motivating them to make informed decisions.
Often, individuals reach out to me, laying out their financial intricacies, feeling as though they're facing insurmountable challenges. However, through these conversations, many realize they're on a brighter path than they assumed. Time and again, I've emphasized the importance of discussing finances; it’s a treasure trove of learning, free from judgment. It’s enlightening to hear about someone else's spending habits—whether it be on hair products or leisure activities—and to see how they relate to our own expenses. Recently, while revisiting my blog’s budget, I discovered that I allocate approximately $15 monthly on maintaining my appearance. What about you? You might glance my way and think I should be investing more, right? 😉
Budgeting Through the Years
Since 2009, budgeting has been an integral part of my financial life. Initially, my budget solely tracked my investments, which have now significantly evolved. My earlier budget items included KiwiSaver, managed funds, cash savings, and bonus bonds, which served as my entryway into the investment world. At the end of each month, I meticulously documented our fund balances on grid paper, always eagerly awaiting the chance to calculate whether our finances had taken a turn for better or worse. Who knew adjusting numbers could provide such thrill?”
Back then, my financial spreadsheet concentrated primarily on investments, ignoring daily expenditures such as fuel or groceries. However, everything changed in September 2015 when I felt compelled to account for every penny. The motivation behind this decision remains unclear, but it coincided with the five-year recovery process after the Christchurch earthquakes, which prompted a strain on my own financial stability. I realized that by crafting a budget, I could regain control amidst the chaos.
Decoding Financial Tracking
This time, I turned to a digital spreadsheet, a sleek yet straightforward tool that proved to be a revelation! Although simple in design, the spreadsheet catalyzed a new level of financial awareness—grasping where every dollar flowed became essential. Tracking every cent transformed my perception of spending, making me think critically about our financial choices. With the understanding that money is hard-earned and easily spent, I aim to ensure it serves a purpose rather than disappearing without a trace.
Should you find yourself on the hamster wheel of relentless work for mere survival, you may appreciate examining my financial numbers. But before that, a gentle reminder: please reflect, learn, and compare without judgment. Everyone’s financial journey is unique, and it’s important to find contentment in how you spend your money.
Our Family’s Monthly Financial Overview
Here's a glimpse into our family's average monthly expenses, encompassing two adults, a child, a pet dog, a cat, and four quail:
• We’ve calculated expenses over the past year, so these figures are an average.
• Our medical costs are somewhat inflated currently thanks to Jonny’s recent Achilles tendon injury, which requires ongoing treatment.
• It's surprising how much we spend on clothing, especially since I’m not a fan of shopping! I typically opt for second-hand finds and occasional online purchases, especially given the extreme temperatures we face—from scorching heat to frigid cold. And let’s not overlook the fast-growing needs of my daughter!
• Our fuel expenses add up, particularly because we rely on diesel for our central heating. In winter, our heating bill often reaches about $50 per week.
• Savings fluctuate, averaging around 38% annually, a figure I’m quite content with in relation to our incomes.
When I multiply our average monthly costs by twelve, it reveals that we require approximately $42,000 yearly to keep our household running smoothly. Would I prefer to lower that number? Certainly! Yet, crafting a budget is all about balance—between frugality and enjoying life, and we lean toward the latter.
Finding Balance and Freedom in Financial Choices
Returning to our work-life situation, Jonny and I both choose to work part-time, willingly limiting our income to prioritize quality experiences over financial abundance. Recently, we hosted some retired friends over for coffee and meaningful conversation about retirement and frugality. This moment encapsulated the essence of our lifestyle—having the freedom to engage in discussions on a Tuesday afternoon without the pressure of work commitments was truly enriching.
After years spent clocking over 40 hours weekly, we realized that too much work could jeopardize our chances of living well today. Our discussions surrounding work-life balance reflect this ongoing awareness.
To wrap things up, I urge you once more: do not judge, mock, or criticize my spending habits or choices. Instead, take this opportunity to observe, learn, and reflect on your own financial journey. Life offers no dress rehearsals, and we only have one chance! So, seek happiness in your current circumstances; if you’re not content, perhaps it’s time for a shift. Understanding how you save and spend is crucial for implementing meaningful changes.
As my late father, a vibrant Australian, used to say, we should endeavor to make every day "bloody marvellous". Let’s make it our mission to do just that!
Happy Saving!
