What is this blog all about

As you propably already guessed I am a single woman. I have a degree in business and I am making an average salary. I am not making a ton of money but enough to have a steady income. But instead of having a nice emergency fund and some savings, I don't. I know better than that so why on earth am I not being smart with my money?
As I said, I know how to manage money. I know my numbers and I understand that in order to accumulate financial security I should be spending less than is coming in. But somehow, the amount I am spending seems to equal my income, no matter how much or little my income is.. I need to figure out why I am sabotaging my own life and what I need to do differently. I've known this for a while know, yet nothing has changed so far. By having this blog I hope I will be forced to be honest to myself and to really start doing something about it.
My goal is to become wealthy, financially secure. To be more exact my goal is to be wealthy enough not be dependent of my 9 to 5 job for the rest of my life. To simplify, I have divided my goal into steps:

1. stop making debt
2. have an emergency fund
3. pay off high interest debts
4. start investing

And how am I going to do this?

1. cut down expenses
2. get more income
3. save money
4. invest
5. reinvest

Easy right? Just spend less than I make. So why haven't I been doing this before? Have you been using your money wisely? Weather you have or not, please leave a comment. All ideas are welcome!

The Rich dad

Now who wouldn't want to have one, so check this out. I stumbled across this website and ended up spending there hours.. The Rich Dad has a Power Pack that requires registration, but is absolutely free (no affiliate marketing here). And it really is worth registering for. There are a lot of good advise and what I especially loved are the tools for figuring out your finances. I literally spent hours there figuring out where I am and what I should be doing.
The man behind is Robert T. Kiyosaki. Well, actually according their biographs, there's a huge team of experts at The Rich Dad Company. But according to the Robert's biography, it all started from the bestseller Rich Dad Poor Dad, a personal finance book. Check it out, and please leave a comment!

“The poor and the middle class
work for money. The rich have
their money work for them.”

- The Rich Dad -

Think wealthy

I just have to share this story that I found on the www.fortunewatch.com. It's about how a millionaire's brain works. Funny and so true.


"Look after your cents and the Dollars will look after themselves."

How to get out of debt - focus on the small things

When you owe a lot or you have a goal to purchase something big, it might seem overwhelming. But small amounts accumulate in to big amounts over time. So think about the little purchases and bad habits that you have and calculate what it amounts over time. Here is a table showing how the little becomes big over time.

A day	Week	Month	6 months	Year	5 years	10 years	20 years
0,1	0,7	3	18	36,5	182,5	365	730
0,5	3,5	15	90	182,5	912,5	1825	3650
1	7	30	180	365	1825	3650	7300
2	14	60	360	730	3650	7300	14600
3	21	90	540	1095	5475	10950	21900
4	28	120	720	1460	7300	14600	29200
5	35	150	900	1825	9125	18250	36500
10	70	300	1800	3650	18250	36500	73000
20	140	600	3600	7300	36500	73000	146000

This is also useful if you are thinking about getting extra income. It doesn't necessarily need to be a lot you're making if you are using it all for your debt payments or savings, or furthermore investing if you have no debt.

You can also calculate it another way. Let's say you're looking to save a 1000. How much would you need to save per day to accumulate the amount in a week, a month, several months or a year.

A day	A week	A month	2 months	3 months	4 months	5 months	6 months	9 months	A year (360 d)
1000	142,86	33,33	16,66	11,11	8,33	6,66	5,55	3,7	2,77

These calculations are made on the assumption there's no interest on the savings (or debt).

Getting out of debt – living on other people's money

As long as you have any debt, you're actually living on someone else's money. If you owe any money to someone else or if there's debt on your credit card then every cent you use is actually their money, not yours.

This is a good way to realize what it actually means when you have debt. This is also a good thing to consider every time you're about to purchase something. Would you use your credit card to buy a cup of coffee or a candy bar? I wouldn't. But when you have debt, it doesn't make difference if you use cash, you're actually buying on credit.

Another thing is to consider the real price for your purchases when using credit or paying in installments, but I will get back to this later.

Need, must have and can't live without

It seems that one just needs to have this and that.. But what do you really need to have and what do you just want to have? One needs to eat, sleep, have clothing and a house rest and live in. That's it, really. So how much money do you really need for the basic needs.
I firmly believe that one shouldn't save on nutrition. Meaning that one should buy nutritious food even if it costs a little more than the cheapest junk food. But on the other hand it is very easy to save on food, if you just leave out all the junk such as microwave dinners, candy, soda and other beverages and so on. Don't go for the most quantity on your money either, but try to get as much nutrition on your money as you can. That is fresh veggies and fruits and unprocessed foods, and go for the organic foods when ever they are available. This way you will  have more energy and you will save on health care, as well as on beauty products ;)
We all need clothing to stay warm and to function in the society. Hanging around the house doesn't require much for clothing, but when working or attending hobbies one needs to fit in and to be presentable. Instead of shopping tons of trendy clothing, go for the basics and spend on quality. When you have a food quality basic wardrobe it's easy to change the look with accessories and by various combinations of the basic clothing. Sure if there's some occasion that you need new clothing for and you know you won't be using the clothing again, then go for the cheap stuff.   But in general, don't save on the basics, and again don't go for the quantity but for the quality.
 What is the purpose on your home? If you need to use your home for business purposes, then the requirements for the housing are different. But you don't need to have meetings with your customers or business associates  at your home, then consider what your needs for housing are. Do you have a spare room or a guest room? If you do, you should calculate the cost of that extra space. How much are you paying for square  meter or square feet? How much do you use the extra space? Let's say for simplicity that your rent is 100 per month and you have a guest room that is one quarter of your apartment. Then you're paying 250 for the spare room. If this room is just for your friends to stay over a couple of times a year, then consider if it's worth to pay for and also to have that extra space to decorate, heat, clean and so on. Saving 250 a month would be 3000 a year! Plus the savings on heating and cleaning and so on..
Ok, so these are the only things you really need, but of course life is more complicated than that and we all need to relax and to have fun also. For some the relaxation is talking a walk in the park, and for others it is something different. But what ever it is you like to do, I recommend you  take out your calculator and see how much you are spending on your hobbies and if it is worth it. Calculate the costs for a month, for a year and for 10 years to get the full picture. Only you can tell how much you need to spend in order to live a full and happy life,

Breaking bad spending habits

I have been doing some research on my spending habits and figuring out what I should do to save and here's a couple of things I've decided to start with.

Shopping for food
I've used to just stop by a grocery shop anytime I need something. I might only need milk, but when I go to the store I never leave with just the milk. So the cost of the milk for me is way more than it actually is.. I also throw away food because they get bad. I might have five different cheese because I'm not sure if I have any and I by it just in case.. So I am learning to plan my grocery shopping ahead. I make a list of what to buy and I only go shopping two or three times a week. Some people go to the store only once a week, but because I live alone and my schedule can change a lot in short time, it's better for me not to stock on groceries for more than the next couple of days.
And I never used to take the receipt with me, but I am now forcing myself to actually look how much I've spend and what did I get for the money spend. Very educational indeed..

Bigger purchases
I don't go buying straight away anything that I really don't need right here and right now. Meaning that if run out of gas, I need to buy gas right now, right? But if my blender breaks down, I really don't need to buy new one, at least not right away. Instead I will sleep on it a few nights or few weeks and really think wether or not I actually need one, and do I need it now, and how much I am willing to pay for one etc. And if my coffee maker breaks I don't go buying a new one right away but I take my time to compare brands and prices and I look for any discounts. I am using coffee for example because fresh coffee is something I NEED to have in the morning in order to get my day started, but really, I can get by with instant coffee for a few days to save potentially a lot of money and avoid buying something I might regret.