Hello everyone! I decided to dedicate this Tuesday night to drawing up a savings plan for the coming winter. If you live as dangerously as I do, miraculously join the crowd!
I really feel the need to put my finances back in order and focus on long-term savings. World travel and saving when not necessarily go hand in hand.
Top lists all the necessary Disclaimer: This savings plan is an individual plan, which I have prepared myself for your life situation. So this is not a universal example of drawing up a savings plan, and I understand that everyone’s financial situations look different.
Check! Well, then, for that matter.
In a perfect world, I would have saved some of the summer’s higher salaries as a buffer for the rest of the year, but instead I had to fill the pit. I was left with a few expected expenses. Oh well, life can’t always go according to plan.
I work in marketing for an hourly rate, occasionally run my own business, and do some freelance writing, so my income varies from month to month. This arrangement suits me well because I like being able to influence my own income myself.
Because of this, I start drawing up a savings plan by listing the expenses first. Once I have received all the necessary expenses listed, I can set myself a target amount that I have to earn on a monthly basis. The dunes always seem to progress a little more efficiently when there is a small fire under the bum to heat up.
Monthly necessary expenses:
My own share of housing costs and related bills: € 300
Student lunches: 50 €
Other food allowance: € 200
Gym: € 40
Paid applications / streaming services: 40 €
Total € 630
I live in a two-person household, so we halve some of the living expenses. And if we are honest, I dropped food allowance little overestimated, because I know myself and I know the longing little room for maneuver. I do not include travel, clothes, wine, etc. for necessary expenses, but I try to raise money for them separately.
Mortgage repayment with interest: € 200
Long-term investment: € 50
Buffers: 50 €
Total € 300
I will reduce my mortgage repayment from my normal studies. If things get too tight, I negotiate with the bank on installment-free. However, the current goal is to be able to repay the loan even a little each month.
I implement long-term monthly savings by investing in an index fund. That’s where I try to put money every month. Now in the fall, I’m putting in direct debit and trying not to think about it any further.
The amount you save in the index fund is money I don’t plan on applying to (maybe ever). Possibly retired. If I started planning what I would do with the money, the temptation to repatriate the money would increase. Instead, money is allowed to raise interest rates on the stock market for decades and decades, it is allowed to tolerate all stock market crashes and booms. I am confident that in the long run, the value of investments will increase with the interest rate effect.
When personal finances allow, I also make direct equity investments, and the intention is to explore other forms of investment (e.g. real estate) in the future! However, with the student budget, the issue does not seem topical. That is why, for the time being, I will focus all my investments on very long-term fund investments, which will serve as a solid foundation for the future.
Saving to Buffer, on the other hand, is money I might need if, even though I get sick, I can’t do enough work in a given month. Once the buffer has accumulated enough as an emergency reserve, I can later invest part of it if interesting opportunities arise.
Student scholarship: € 250.28
Okay, once the expenses are listed, I can see how much money I should make net (after taxes) each month: at least 700 euros. Phew. At the moment, the goal seems realistic.
The cornerstone of managing my own finances is that I always pay all the bills when the money comes into my account. That’s when I also save and invest. Only then do I trade. Or well, at least I always strive for that (I’m only Hooman, after all).
The remaining money has to make ends meet, and if not, the money has to make more. My idea is that if I run out of food money, I will intuitively plan and develop new sources of income for myself.
Because TBH, if I saved what’s left in my account at the end of the month, I would never save anything at all.
Well, that was my fall savings plan! Do you already have a savings plan in place?
A wonderful weekend everyone! <3