The two powers of money aka how last year changed us and our approach to money

Early Retirement Finances Frugal Living Frugal Mindset

Money is powerful but not only because it can purchase the necessities. Today we are talking more another the subtle power related to money- the power of being able to say this much is enough. There is an immense comfort in knowing you can throw money at a problem, because you plan for emergencies as we do or you are simply rich. There is similarly a comfort that comes from knowing when the desire for more money is eating into your life.

Fair warning: Next few paragraphs are filled with life and blog updates for more on power of money skip to the next line break.


The Update

We have been missing for really extended period of time and honestly I forget about the blog completely with our daughter during the day. I am trying hard to soak in the last few days of uninterrupted time I have with her as the end of my maternity leave comes close. Somehow I know that the blog will be there when I come back.

We run a few ads on the blog and if we were posting more there would be a lot more footfall resulting in pennies (yup that’s not low balling) entering our unusable vault at google HQ. If you have looked into the site in last few months you might have also seen a small dialog box pop up asking you to give in your email. Well I took it off today because I hate them if I have to encounter those somewhere and honestly I put it up because I thought it was a good idea. If you do want to give us your email and follow the blog I’ll put a box somewhere in the sidebar for that in near future.

So what has that got to do with not wanting more money if it is eating into your happiness? Fair question but these changes are not the standalone changes in our lives. As we grapple with new parenthood we have both let ourselves slip a little (and a lot in some cases too) as well have turned away from money which could have easily been made in an hour or two. This has a lot to do with our increased desire for family time but equally to do with the level of dissatisfaction with the earlier freelancing streams.

Then there is the insane desire to simplify more and declutter a lot more. We have been trying to sell of some big furniture we own to make some space for our daughter to crawl. We might replace these later if we end up in a place with more space. We are actively culling our belongings and replacing things with better alternates.

I am usually looking for something to do other than just my job and in the past that has been freelancing work, blogging, cooking and travelling. I intend to retain the last three as they give me a great amount of joy but for as much as I can see freelancing as an income stream is drying for us. I am itching to fill it with something but for now and till I actually do something it’s better kept private.

You might also notice a change in tone of the blog and I am hoping it will be to most people’s taste. Right now all I want to do is share and create blog posts to my liking and hone my writing better. If there is something specific that you would like to hear us talk about, let us know.


The Powers of Money

Both during the last few weeks of my pregnancy until very recently we have spent far more than either of us felt we would. The household expenses skyrocketed and family travel reduced our budget to shreds. We do budget for travels and though we have yet to meet the budget after 3 domestic and 1 international trip this year but the expenses did pinch a bit since we had been running the house with a tight fist. So what happened? NOTHING

Exactly nothing happened and we managed quite well. If I had to specify the reason behind that it would be the ones below

We are blessed with salaries that cover our expenses and also allow us to save a decent sum. There is no shame in accepting our privilege as educated couple with dual salaries which would be classed as above average.

We kept our expectations low. We accepted that for a month or two there will be no savings. This did not happen however we were OK even if we had eaten into our savings a bit.

We prepared for this. Well not exactly this time but we knew there will be months when we would need every single penny we make and then some. We made sure that we save consistently and not wait for the next month to save. This meant that when the crunch came we could rely on some savings if need be. We also maintain a steady emergency fund in our Maxgain account which we replenish once our immediate need is over.

We spent wisely. Even though our expenditures increased we never let the expense go out of sight. Almost every expense was consciously done. There might have been a few knick-knacks that were purchased to appease my cravings (and then consumed by me in no time) without a thought to how much they cost, but most expenses were clearly thought about. Most of the stuff that is reusable was bought second hand and we would be reselling them once the use is over. I intend to write on this in detail at some point of time.

The power of being able to throw money came from our frugality along with our earning capability the power to say no to income streams which do not add value to our life comes from the very same things. We earn enough to live, save and have some level of entertainment but we also keep a tight leash on our finances.

Frugality has paid off for us much more than we could have hoped for. It has not only allowed us to aim for a life of early retirement but also allowed us to not live a life of deprivation while we work towards our goal. We night be in a situation where our current expenses are way higher than what we want but we are trying to lower them.

The desire to reduce our expenses germinated from necessity. When we moved to the expensive city we are in currently we were not sure we will be able to lead the lifestyle we were accustomed to. We chose a few priorities and then scaled back on everything else. While our income has increased we worked hard to fight lifestyle inflation and to reduce our consumption. It is something we learnt by doing it over and over again. Even today we fondly remember the months when we met our budget of 14K and we are working towards finding that sweet spot for our budget where we can realistically draw a line. We want it to be doable but challenging enough that we meet it in a few months. Then maybe it will be time to push the number down again.

Before I sign off, thanks for waiting for us to find time again and talking to us. We appreciate the audience we have and the fact that even though we were away for months people found us and who knows maybe also came back to visit us more than once.

PS the pretty pic above is by SnapbyThree MY on Unsplash and it is there because coffee makes everything a bit better.

1 thought on “The two powers of money aka how last year changed us and our approach to money”

  1. Dear All,
    I am currently facing problem taking down the pop-up. I just need sometime to figure it out. If you’d rather I have it or just don’t care let me know.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.