Let's talk about money 💸

FUN! 😃

Well, fun might not be the right word, but it is an important subject to address every now and again.

As someone who understands the monetary system exists for a reason but at the same time not fully agreeing with every part of it because of various reasons including the power and control it can give people, I find this an important topic to discuss.

I saw a message on Facebook the other day and it was a local woman asking how much money people spend on average on a weekly basis because she thought she might be spending more than she should and would like to be able to budget better. The responses were varied and I didn't really look into it much but there was one reaction that stood out. It was someone saying: that’s a pretty private matter, isn’t it? And I think this is a very common thought or response.

Since I was already contemplating with myself whether I would write a post about financial stuff even before I saw that post, I was motivated to write it even more. I think money can be a pretty vague and scary concept for a lot of people and very confronting at the same time because we’ve become dependent on a system in which we need money. It's a system that can mean the actual difference between life and death or at least the difference between living a safe and comfortable or unsafe and fearful life. It's only logical money is the root cause of a lot of anxiety and fear in the world.

Old school saving in a jar

What does money mean to me?

I think it means more to me than it should.

In(ter)dependence is a direct byproduct of someone's financial status, so I guess to that regard: it means the world to me because freedom is the one thing I value most. Once the pressure of finding a job is off and I can pay my bills, money becomes less and less meaningful in terms of needing more of it.

In other words; as long as I make sufficient money to keep myself sheltered, fed, and with an option to go for a chai every now and again, I'm good.

I have been on a journey of trying to figure out how much money I need to be compliant to the societal rules that are at place now and still feel like I have the freedom to do things I like but not necessarily need. Those things mostly evolve around chai, brunch, or a camping trip. But it can also mean a trip to another city, country, or continent to see family or friends.

I know I don't speak for most most people because we live in a world where online shopping has taken over, but I eliminated (online) shopping for the sake of (online) shopping from my life almost entirely and I try to only buy essentials if there is no option to get it another way such as an op shop or someone gifting it to me.

So, what does that mean for my finances? It means that I can be extremely transparent about the fact that my expenses are low and how I can budget my life. Currently, I just live day-by-day, pay-check to pay-check and while I gradually learn more about becoming self-sustainable and eventually, hopefully, some day I'll be able to sign off from the monetary part of this societal system entirely. Or at least, live a life without having to rely on it too much.

And all the while I am still dependant on someone else paying me money to sustain the life above, I am on an ongoing journey to explore a different world. A world in which I get to decide how much money I like to be paid and if I even want to be paid in money or if trading services and being kind to one another is still an option in this world too.

Still, I do manage live a comfortable and simple life now on a small budget.

Okay, but how?

Well, here’s how:

☀︎ Spreadsheets

Domi LOVESSSS her spreadsheets.

I keep track of all my income and expenses to the smallest detail and keep track of it in a spreadsheet. This is a scary and confronting thing, and I procrastinated on doing this for the first 30 years of my life (not that there was much to track until I started to make some money around the age 16 of but still, that’s almost half my life being scared to be confronted with my own spending patterns).

I started the first spreadsheet at the start of 2023, and it was good to figure out patterns and what my biggest expenses were. I was travelling at the time and working as a freelance virtual assistant with hardly any clients, so my finances were a bit all over the place and mostly consisted of savings and expenses. Obviously, those savings were vanishing into thin air rather quickly.

The second year of spreadsheeting looked even more concerning too due to my inability to work because of my visa status for the first 4 months of the year. I couldn’t work and therefore was relying on support from my family. I still put everything in the sheets and that’s how I know what to ask for without too much guilt because I was only asking what I need to support myself with the essentials (mostly food and transport).

This year, I started another spreadsheet with clean slate and a steady job. And even better; I know the minimum I need to earn to keep supporting myself and I have a visa with working rights, so even if this job falls through, I can always find another job to support myself.

And I’m not saying everyone should aspire to get a job with minimum wage, but that’s what I am doing now, and I get by. I just hope that helps anyone in a tricky situation get some perspective and hope that it is possible to find a balance in finances if you allow yourself some time to figure out those spending patterns and your musts and wants.

What I mean by musts and wants? Well, musts are essential. This can include rent, a car, fuel, food, a mortgage, child support, insurance, or anything else that's essential to you. Wants are the additional things that aren’t really necessary but make life just a little more fun like going out to dinner, coffee, trips, a new outfit, etc.

Only by being honest with yourself about these and by setting some healthy and reasonable boundaries, there will be more and more space to be a bit more creative with the budget.

☼ Think twice before you buy

About spending anything in general.

I’m not saying: become the tightest person in the world. But at the same time; do you really need it or is it just something you want right now and therefore might be an impulse to fulfil another need? Which it usually is, by the way.

I used to keep a list in my notes in my phone called “To buy if money”. This meant things I wanted to buy once I started making money again.

Now I have started making money again and I haven’t even looked at that list once. I kind of forgot about it because apparently those things weren’t as important as I imagined them to be.

There's one thing I remember being on that list, thought, and that was a pair Birkenstocks slippers. And believe it or not; they found me and I didn’t have to spend a penny. On the first day of my new job back in August, I found the most beautiful pair in the lost and found box at work, and they were my size. I asked if I could keep them if no one claimed them and I was told I could if I waited 14 days. I did and now I am a very happy owner of Birkenstocks slippers.

The world is funny like that.

And it’s not just for things this one, it also goes for the endless stream of memberships and sign-up fees for whatever website or software or app is out there.

No shade to companies relying on those sources of income, but I know how quickly things can start adding up on a monthly basis if I keep signing up for these memberships which are only an X amount a month and oh my God only THIS X AMOUNT a year. That’s an X discount!

Well, you know what I mean. I like to thread very carefully when I am considering a new service for whatever reason and run into the paywall. I usually back out or sign up and back out within a year.

☾ No doubles

Please don’t think I take this one to the extreme. Obviously, I have plenty of underwear and socks (IN PAIRS, like a proper adult) and stuff, but I apply this mostly to bigger things like shoes, bags, suitcases, electronics, and stuff like that.

For example, this is my shoe list:

• one pair of hiking shoes

• one pair of sneakers

• one pair of sandals

• one pair of slippers

• and my Birkies.

And that’s still quite a list.

But compared to owning multiple colours and brands of sneakers and boots and heels and all of that when I was in my twenties, it’s an improvement towards the life I aspire to live.

I have one suitcase and one backpack which I will replace only if they are beyond use.

My phone will turn 4 years old this year and my laptop is still a little toddler of 2. Both appliances I treat with care (although, I am clumsy and have dropped them both multiple times) and am reluctant to replace and will only do so when I really really have to.

I have 2 sets of towels and sheets to switch around and to be able to have friends over and give them clean sheets and towels.

Other than that, almost all my clothes fit in that one suitcase I have, and I get a little angry with myself every time I move and find out it’s getting more and more difficult to close that suitcase. That always seems to be my sign I might be accumulating again and it’s time to check if there are things I can donate.

As far as personal items go, there really isn’t a limit to photos and postcards with and from friends. I have a beautiful collection of crystals and essential oils that seem to have no limit either. It’s really about finding what is important to you and how much space in your life (and budget) you would like it to take.

⭐︎ Reuse, repurpose, recycle.

This one kind of speaks for itself. I try to reuse or repurpose most things before I throw them in the (recycle) bin. I’ll bring a bunch stuff I don’t use anymore to the op shop and wash out jars and bottles for reusing or repurposing. Same goes for boxes and things. If I can think of a use for them (side table, storage, etc.), I’ll hold onto them and if not, recycle bin it is.

♦︎ Disconnect (a little bit) from (social) media

This one really helps lowering the temptation to buy things I don’t really need. By not being on (social) media anymore, I am way less targeted by ads and less tempted to buy things. Not that I was very sensitive for those things when I was on there, those things usually had the opposite effect and I always had a hard time buying things online anyways, but that’s more because of my background in digital marketing. I just, again, don’t agree with the capitalistic drive behind it.

⊗ No car, no house, no nothing

This is something I would recommend to everyone who doesn't aspire (or is capable) to own property (yet) and is in near proximity to work and shops. And I know that's not very common here in Australia but it's not impossible.

Since I live on a pretty tight budget right now, this is the only way I can live comfortable without worrying too much about the bills.

I signed up for a car share system and it works perfectly well for the trips I need to make (which aren’t a lot) and I live in a caravan that I rent in a little community near Byron Bay right next to the beach for a very fair price. Life doesn’t get much simpler than this. And before you think this is only possible for a single person with no kids, there are parents with kids living here too!

So, how do I manage my personal budget?

First of all I list my income:

I currently work a casual job for 24-32 a week on a minimum rate and with that income I can cover all the bills above and still save a LITTLE bit of extra money if I keep my variable costs low.

Then I list every single expense I make every single day:

Fixed expenses

• Rent

• Monthly memberships (digital storage, phone and entertainment)

• Yearly memberships (mostly software)

• Yoga membership

Variable expenses

• Food

• Non-fixed essentials like underwear or a drive to the doctor's

• Fun things like chai, brunch, or a tiny trip

Big expenses

• Bigger trips and travels

• School tuition

• Health insurance

And with those numbers I try to predict and stay in balance.

With my income and expenses mapped out in my spreadsheets I can kind of predict the times in which I can save up a little more and also when I need to be a bit more careful.

For example: I don’t like to cut back on healthy food and try to buy organic and in bulk as much as I can, but if money is a little tight, I will choose the non-organic and supermarket bagged options.

If you would like to play around with a budget spreadsheet yourself, feel free to download the template below. The instructions are written down in a separate tab. It’s really not as scary as you might think!

Financial Overview Template.xlsx

Download XLSX • 83KB

This is an example of the income and expenses page

And this is the dashboard where the information is automatically filled in because it's connected to the income and expenses page.

And that’s it for the money talk.

It’s really not rocket science if you find a way to make it easier for yourself.

Good luck out there and let me know if there’s anything I can do to help!

Xoxo,

Domi