#160: This isn't financial advice
This is my story with money.
I wrote about Money a few weeks ago and received plenty of responses.
I’ve been questioning Money. The role it plays in our lives, the pursuit of money and the wider environmental and psychological impact of money on people and planet.
For now though, I’ve been delving into my own financial health.
How much money do I have? How much do I need? How much do I spend? Where do I spend my money? Is where I am spending my money reflective of what I value or what I’m prioritising in my life?
With the help of Patrick Venn I’ve been asking myself all these questions alongside Sarah too.
Here’s the process I’ve been on.
I began tracking all my spending using a money tracker app
I made a note of all the money I have right now. Savings, piggy banks, pensions. Everything. (Lots of logging into awful websites and being on hold, finding letters stuffed in drawers)
I made a note of all the debt I have, which for me is mainly student loan
I worked out what my existence is costing me. Rent, bills, food.
I calculated how much I earn each month and what the surplus is (minus the costs of existence)
I committed to an amount each month I can save/invest
I calculated what rainy day money I’d need if I didn’t work for 3-6 months.
I looked ahead at what big outlays might come in the next year. Possible wedding, furniture if we move, holidays, attending other people’s weddings.
I shut down some accounts and compiled everything in one place
I learned more about investing; funds, fees, accumulation, the pro’s and cons of investing in tracker funds or picking single stocks.
I opened an investment account and started investing in a tracker fund
I changed the fund that my Pension now goes into
I continue to invest a tiny amount in crypto
I’m reading and listening to a lot of books and podcasts on financial independence and DeFi (decentralised finance)
I’ve begun having a lot more conversations with friends about money and being less “British” in talking about what others are doing with their money.
This process is fairly well documented in many books on financial health/independence/wellbeing and has been used over the years by thousands in the “FIRE” community (Financial Independence Retire Early).
I have found this process quite confronting as it has called into question a lot for me around “what is enough?” And “what do I need?”
I can clearly see that I am in the position where I have enough money to live comfortably. I have enough money. I don’t have a lot, I am nowhere near a position where I wouldn’t have to work, but I do have enough.
What I’m left with though, is it still doesn’t feel enough and that’s hard to sit with. Why? I don’t know. Because I want more? Because I feel like I should want more? Because having enough would mean stopping?
As you can tell, I’m left with as many existential questions as I am practical answers.
What I’ve got to hand now is my “net worth” and an idea of at what point I wouldn’t need to work, which is typically what you’d call a retirement age.
I can see my “net worth” all the money I have versus the student debt I still have.
I can see that if I continue as I am I will probably be able to ‘not have to work’ at 55, if my livelihood were to stay relatively similar to how it is now.
I cannot believe I’ve only done this at 29 and as my mates have been saying on WhatsApp; “Why were we learning about Oxbow Lakes in Geography, and not this?”
I have to agree, not on the Oxbow Lakes as I did find the erosion of sediment mildly interesting, but I certainly agree as to asking why this wasn’t on the curriculum at School.
Where has this financial literacy been for a generation?
I find myself thinking like an anarchist, thinking “they don’t want you to know”, “they want to keep the poor poor and the rich rich”
This really sticks though, if you grow up in a low income household, where are you getting the financial information and education that might support you in making the most out of the money you have?
Anyway, there’s a long essay that I could write there and possibly will one day.
This work has been impactful for me, yet right now I can’t say it’s been overly positive, because it has been difficult and has left me with other feelings around my lifestyle, my choices and my work.
I am glad to have done it though, very glad. The changes I have already made could be the difference of hundreds of thousands of pounds over a lifetime, that is massive, my future self will thank me.
I’m pleased to see more conversations about money and financial health happening. Although I find myself a little worried at the “get rich quick” schemes mainly on YouTube that are rife, particularly in the crypto world.
More literacy around financial health and more explicit conversations around money are only a good thing and I hope we see more of them.
Money creates a lot of motivations, so if we’re all more conscious of our relationship with money and the health of our finances I believe we’ll all make more conscious and true choices. Without being subconsciously pulled around by our unawareness.
It goes without saying, this isn’t financial advice. Please do what you want with your money, but I implore you to look, get informed and even work with someone on it if you need to.
I have and I know in a year I’ll look back on this and be thankful. It’s been like going to therapy, I’ve just been talking about money, not my feelings.
It’s just as hard and, I hope, just as rewarding.
What I'm up to:
I'm reading Tess of the D'Urbervilles by Thomas Hardy
I'm listening to Modern Finance with Kevin Rose
Here's the cover for my book; "Mental health at work" coming out in October.
Thanks:
If my writing, or my work has impacted you and you'd like to say thank you or send me a tip to keep me writing, you can send me some ETH or BTC. Thank you so much.
(0x28554Bc197416bA913C32faf2b278B9f5f651119) - ETH
(34e3P9bcjfVWtvWSba1ijAHxAHpRnjbrzs) - BTC
To the anonymous person that sent me 0.018 ETH as a tip for my writing, thank you! I'd love to say thank you if you drop me an email. It made my week and I felt recognised for some of what I've written over the years. Thanks a lot, it meant more than the crypto!
https://sanctus.community/welcome
Who am I?
I'm not quite sure. I'm the Founder of a Mental Health mission called Sanctus and I'm the Author of a Book; "Mental Health at Work" that's published by Penguin and out in October.
I write this newsletter about mental health, startups and my life, my journey and 8,000 people like it enough to still be here. I try to respond to everyone who emails me, it just takes me a while.