I would have to say the main driver of my financial decisions depends on where I am in my money journey.
So when I was in debt, it was to get out of debt. I stopped spending as much as possible and I checked my debt balance obsessively. I made charts to see when I would get out of debt, I planned for everything. EVERY PENNY.
Once I was out of debt, I just wanted to save money and reach a comfortable amount of savings so I could breathe and not worry about having to go back into debt of any kind.. It was around the time of the market crash of ’08 and I managed to save $30K and was paralyzed in investing or spending because I had no clue when my next contract would come and when.
I couldn’t invest that bit of money, I thought I would not get a job for another year or two, and I needed all that $30,000 to pay for expenses in that case.
Fast forward to today.
Now, I am growing wealth. It is easier for me because I make a good income, but harder because I didn’t (until recently I have been running models on whether I am on track or not) have any real goals set up with true benchmarks of wealth or assets.
Today, I would say the main drivers are:
- Comfortable retirement (and on track for it, to give myself an #%9# kicking to stop spending so freely)
- Saving to be comfortable so that I am financially stable for Little Bun – he will not worry about me and I can help him if I need to
- Hitting the $1M mark this year. Yeah, THIS YEAR. I am trying to force myself to accelerate.
- Disregarding my car and house as liquid assets because I am being fooled into thinking I have money and I have it in fixed assets, so I will be splitting out my LIQUID assets versus fixed.
What drives your financial decisions?
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