I get obsessive over certain elements of my life. I already have my wedding planned out. I have baby names. I have the whole canvas painted. However, recently I realised the picture I thought I had was not clear. Yes, I have thought about baby names but, I never sat down and thought about the actual cost of having a child. Ditto to a wedding. Both very long term commitments. My dreams were hazy and cloudy and it was about time to have a serious sit down with myself to talk about what I want in detail.
My first stop was my parents. I had this conversation when I first got my job. They told me to get my own insurance and get an investment portfolio going. They even gave me a crash course on what information to be on the look out for investing. However, I was not yet at a space I wanted to digest what they had told me.
I had my own plans. The first few months I saved 90% of my salary towards expansion of Inteco. The 10% I splurged and wasted. 90% of that went to eating out almost everyday. I did not feel too bad about it because I was saving. After I hit my target I decided I needed to move out and so I did. My money was now moved to acquiring house stuff and rent. You could say I did not use my money badly, that in both circumstances they were investments. However, I was uneasy. I had no savings. If I was fired at that time I would have had to move back to my parents’ house and it would all have been a waste.
That really scared me. The fear of not having a safety net drove me to have my first financial conversation. What was important to me financially? Clearly it was having a reserve and that became my third financial goal. I put aside a percentage of my income into a savings account and now I have a safety net of 6 months. That means that whatever happens I can sustain myself current lifestyle for 6 months. I have gone a step further to pay rent and house expenses sans food and utilities 1 month in advance. Just in case I am let go I have one month sorted and it will give me enough time to access my emergency fund. That was not enough for me. I consulted my books and realised that I could pay my rent quarterly if I saved smart. That is now my next goal. So that in reality I have financial security on the home front of approximately 9 months.
With that fear gone I could now sit back and start evaluating my life. Prior to this I would only make one year plans because I simply could not predict or anticipate beyond that. I was changing as a human so frequent anyway there was no way my views now would have been the same five years from now. As I have started settling into my own the path to my future has gotten a little clearer. I can now see where I want to be in five years, what quality of life I want after that, how many kids I want, where I want them to go to school, where I want to live amongst other factors.
With the clarity I have now it was a lot easier to map out my life. Something I shall talk about in the next post.