Rules for money

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I have made some rules for handling my money. Purpose of these rules is to make sure that I spend money on the right things and that I save money so that I can start really making it someday.

1. Spend less than you make.

This is the first and most important rule for handling money. To stop living from paycheck to paycheck you must stop spending more than you make. So every month you should start to have more and more in your buffer. You will need that buffer, there will be surprises and sometimes you will spend more than you make but you should try to spend less than you make. With time you will start to have big enough buffer so you will be able to not stress about money so much and start to make it work for you.

2. Get out of bad debt.

Any debt that you have that is not for something that makes you money or is not your home that you live in is bad debt. These kind of debt’s are mostly used for thing that lose value right after purchase like cars, electronics or something that has actually no value at all like junk that some people call food. When you don’t have bad debt and you have positive cashflow, check Rule 1 that’s above, you can get to the thing that can make you free and all you dreams of living in the sun true.

3. Make money work for you.

This is the interesting and most exciting part of reaching financial freedom. You must invest your money and make that money work for you. You can work hard, but your money can work harder. You will need to rest but your money won’t. You can sleep and wake up in the morning with more money than you had when you went to sleep with. That is amazing. There are many ways you can make your money work for you. You just need to find a way that works for you.

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Net worth May 2016

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To reach financial freedom someday it’s important to follow my finances. So that I know I’m spending my money in the right places and that my net worth is improving. My idea is to grow my assets and pay off my liabilities. Also, I need to change my assets in to assets that make cashflow for me.

Assets

Home: 279,200.00€
Portfolio: 3,879.00€
Debt handling account: 364.00€
Cash: 132.00€

Total: 283,575.00€

Liabilities

Mortgage: 225,873.00€
Student loans: 13,980.00€
Spending loan: 3,438.00€
Credit card: 1,150.00€

Total: 244,441.00€

Net worth 39,134.00€

That my net worth at the moment. Quite good when 2 years ago I was 12,000€ in the negative. I started to use my money better and not to spend it on useless stuff. Also, I have been really lucky, my assets like my home has grown in value and portfolio has also gained something in these last 2 years.

 

Why I’m writing this blog

IMG_0241Why fin for win?

Well, fin for the fact that I’m finnish and the rest for the fact that i’m going for win. For a big win of financial freedom.

What is financial freedom?

It’s a financial situation in wich your money can give you a choice to what you want, when you want, for much as you want to do and with who ever you want to do it with. Sounds amazing doesn’t it.

How will I reach it?

By saving money and making it work for me by investing. I will make few rules how will use my money and by following those rules I will be able to same more and spend money on smarter things.

Isn’t saving money boring and hard?

Yes, it’s hard and I hope that it will be boring.

But where is fun in that?

Well, it comes later. It’s all about doing now what most won’t do so later I can do what most can’t do. By not spending money now I can later spend my days in sunshine when other will still slave away at jobs they hate till they are too old to do anything. What would you choose? Laying in the sun or working till you are too old to do anything but lay in bed.