For new and existing readers, this is my journey as an anonymous millennial from -$20,000 net worth in November 2016 to financial independence and early retirement. Subscribe to my blog to stay posted!
April was quite a month! I keep thinking there will be a month where I struggle to find something interesting to write about but it doesn’t seem to ever happen. I guess that’s a good sign!
This month, some major events made me re-evaluate my decisions and give new meaning to what ‘financial independence’ gives me. Previously, financial independence was about affording a certain lifestyle, working towards the freedom to have adventures without the restriction of a 9-5 and never having to worry how I would pay for my bills if I was made redundant or lost my job. Now, after discovering something at work which was unethical, potentially fraudulent and criminal, financial independence also means being able to afford to walk away when others’ actions conflict with my own core values. That’s true freedom.
Apart from that ‘negative’ event, I’ve learnt many positive lessons this month. I’ve learned to be present and in the moment through daily yoga, meditation and good practices (I’ve written about them here). I’ve learn to have faith that things will be ok and believe in myself when I’m let down and hurt. I’ve learnt the importance of having readily available cash when unexpected trips or holidays come up, such as my USA trip, and how I stress a lot less when I have cash sitting in the bank.
My main challenge since starting this blog has been to stick to a savings rate. My goal this year was to save 40% of my salary every month, however I keep overspending and having to withdraw money out of savings to pay for the additional expenses and then feel as if I’m going backwards on my progress. Instead, I’ve accepted defeat and reduced my savings rate to 30%. I’ll aim to work back up to 40% in a few months when my spending stabilises and reduces.
How much did I spend in April?
I went on a few dates this month which increased dining out and entertainment spending and it was well worth the cost. Shopping was kept to a bare minimum and now feel like I have enough: my wardrobe has all the ‘key’ pieces I want and can dress for any event. I’ll need to eventually replace some worn out, everyday pieces (like shoes) but apart from that I’m happy with what I have now. I don’t need any more clothes.
There were some big beauty expenses due to laser hair removal (semi-permanent hair removal). I purchased 1 session and pre-paid for another to lock in a 50% discount, costing $240 for both. The pre-paid session came out of my sinking fund.
Lastly, there were some leftover USA travel expenses came out in early April.
What is my net worth?
My net worth increased by $3,500 on March due to savings I put away, receiving quarterly dividends worth $290 (reinvested of course) and my superannuation (retirement) account growing.
How was your month of April? Did you learn any lessons from the way you spent?
xx Miss Piggy