In 2024, I review my finances and investments and was a little bit shocked. I mean, I was shocked all the time, basically, I was in the middle of a burn out and everything was too much and a burden and impossible to manage. But there was that moment when I did a summary. And I had reached my goal.
Being able to provide for Lily and survive myself (meaning, no beer nor other luxury, just bare minimum) from passive income, stemming from diverse funds that did not include my business nor any support from my community and family.
It was a turning point for me. "Financial security" was one of my hidden trauma, one that I only realized I had once I reached that goal - and thought that I needed more. Because, what if...?
I lived very frugal for many years. I spent more money on little gimmicks for the business than luxuries for myself (besides eating out once a week, 8$ for a dish of Tofu that lasts for 2 meals).
I drank the cheapest "beer", only $1 for 660ml back then (by now it's $1,50 I think). I never bought new clothes, and if I had to, the cheap ones.
I had them fixed until my fixer guy asked me to show mercy on him and the shredded cloth, and finally put it to rest.
I made it a habit to get up at 6am on a Sunday to go to the Hampi Maskari market to get the best deals on all the veggies that I could get for 15% more anytime of the week at the regular market. And 2$ worth of "Papas con berro", Potato with watercress, which is a huge amount that feeds me almost a whole day.
I bought more and more bulk to save pennies on the dollar on ingredients for the bakery, re-investing everything that was left-over.
I pulled 16-18h shifts regularly to boost the business, until I had enough income to afford a worker, then two, then three, then four, then five... With each one working harder to get more clients and make it worth it.
I rarely took vacation, and if so, generally in cheap hostels or at friends' places. I didn't need much, I still don't. Vacation is getting out for the normal.
That's just a few things. I was raised to save energy, water, gas, whatever there is. So I'm still doing that. Once it's a habit, it doesn't cost energy anymore. Working on those good habits makes my life so much easier now, as I still have a savers-mentality, but finally allow myself some luxury. Going out more often, buying a coffee grinder, a cajón for the jam sessions, a new coat from NuevoSol that looks awesome on me and makes me feel good.
I've made it. And I was able to resist the "I need to continue to get more!" that runs in my family. It's not greed, it's fear. Fear of what could happen, because so many things had happened to us. So many health issues, swallowing up huge chunks of savings.
But I can't live like that. And I made one thing very clear for me:
[...]stemming from diverse funds that did not include my business nor any support from my community and family.
Whatever may happen, I can count on so many people to help me out. They already did, after the pandemic, when I was down on the ground, all savings gone, and facing having to travel across Ecuador once every 5 weeks to be with my daughter for 10 days. I got so much support from my community.
Not to mention my family. Whatever happens, they will be there. Nothing more to say, always was the case, always will be.
And my business is running, and my team is awesome. That passive income? It's compounding. And that's enough.
I'm no big spender. But I enjoy spending money on myself now, not only on Lily who's the main focus with all her lessons and whatever there is to cover. I'm still in the habit of saving, and I always will be. I think I found a balance. After years of grinding, I made it. I have financial security.
Until everything goes to down the drain and money ain't worth the paper anymore.
What are your thoughts about this topic? Please feel free to engage in any original way, including dropping links to your posts on similar topics. I'm happy to read (and curate) any quality content that is not created by LLM/AI.
Post written for the #weekend-engagement by @galenkp inviting us to answer selected questions in the Weekend Experiences community each week.
This is my response to:
1/ What have you had to work hard for and eventually achieved? Explain what it was and how you did it.
Thank you for reading!
A great topic and good for you for not adding to the unnecessary waste we often see nowadays. Some people get programmed to buy more than they need while others go without.
I was reminded of some of the things I did to save when I lived off a student loan from the government.
I would wait for sales in the grocery store and if the sale was super cheap and I didn't have the money to buy in bulk I would hide the stuff in the store. Making sure the price was on my can of bean and sardine. One time, I think about a month had passed, maybe more, I went through the checkout and was asked where did you get that low priced can? I was honest and said it was way, way back on the shelf. !LOLZ
!PIMP
!PIZZA
Those are the most valuable experiences. Living off scraps. I still see my grandpa, a WW2 veteran and POW in Russia, cleaning the Joghurt cup with a spoon until there was nothing left. And then complain about it being made of plastic. He was one of my great influences in being thankful for every little thing I have, and to not want too much.
I can relate. I'm an Acadian so we have a lot of history of living with little needs. You do what you have to do to survive and you avoid greed.
This Hive experience is most exciting for me. I love the creativity and accept the attached rewards.
!LOLZ
!PIMP
My husband tells me this all the time. It was only this year when we had a bit of profit on the house, giving us a couple of years breathing space, that I felt a little more secure. As he says, it could blow up tomorrow, so stop worrying abuot it. I think as usual it's balance - being relatively frugal, saving for a rainy day, and not stressing too much.
Balance is the key, as always. I adjust most of my spendings to the current situation. Right now, I'm low on savings because I bought a new oven for the bakery. So I reduced my spending a lot. When everything is paid for, I'll start enjoying myself a little more again.
I would like to come up with some other streams of income. Tried to start a couple of businesses, but never worked out. Trying to start another, but it is on hold for now for various reasons. Glad you were able to find some freedom in your financial situation.
It took a lot of effort. And networking. I fell on my nose several times, but learned from that.
Starting a business is a big endeavor. I'm wishing you well for that! I hope it works out!
WOW, congrats you succeeded in 100% own sustainability.
For that, I took a bit too much - hindside view - which didn't turn out well. Lost quite a bit of money, almost all my savings.
Gradually building hard currencies again and planning to invest with (much) lower risk profile. Perhaps that will work out.
Years ago - kinda like 8 of them - I went through financially rough times and went from luxury living to absolutely basic living.
Fun fact, since then I was able to get myself a good income again and saw myself not going back to luxury living.
Great outcome, since mucho money left over from my income, month on month.
Perhaps a bit too much, since with much of the left overs I went high-risk investments: crypto, shares in startups and whatnot. Lost almost all 😆
Anyways, set a similar goal for myself as you did, already more than a decade ago, to become financially independent, not counting on the income I have, ie some form of passive income.
Goal set! Now I have to reach it. First round failed (goal was to become a multi-millionaire). Second round about to start (goal is not 7 figures, but a comfortable amount). Inflation and the country of residence set what a comfortable level is, which is dynamic.
I'll be happy if I'll get to low 6 digits of net worth... that would be a lot here in Ecuador. Life is cheap here. My survival is only 600$, that includes 200$/month for child support and 120$ private health insurance. $280 would be for rent, utilities, food. I have lived on less here, too.
I hope you'll get to your goals, it seems like your absolutely on the right path with a cheaper lifestyle despite higher income!
600$/mnth .. uhm, backup plan could include: keep apartment and rent it out, relocate to Ecuador and live from the rent income.
Yeah that's my brothers plan. He's getting an investment visa on an Appartment here, and would rent out is house in northern Germany. With the rent, he could live nicely here.
$PIZZA slices delivered:
@fjworld(1/20) tipped @beelzael
Join us in Discord!