In recent years, I have tried to be a mindful spender. I budget and keep track of every purchase I make. I spend less money than the average Finn, at least on clothing, cosmetics, and transportation. I save and allocate money for travel and my hobbies.
A number that, to be completely honest, Iām proud of is this:
Over the past year, 50% of my net income went into investments.
š¶ Net income = The money that lands in my account from various sources after taxes and other deductions.
ā What I counted as investments:
- The portion of my mortgage payments that actually reduces the loan balance. For example, if I paid the bank ā¬785 for my mortgage last month, ā¬379 of that went to interest, and only ā¬404 reduced the loan balance. That ā¬404 essentially increased my ownership share of my home, so I counted it as an investment in my apartment.
- The money I used to buy stocks and investment funds.
ā What I did not include:
- Money I put into savings accounts or funds as a buffer for upcoming planned expenses.
- Money I contributed to my children’s investments.
Of course, not everyone is in the same fortunate situation, and I have also experienced financially tight periods in my life. But I also know many people who seem to struggle to maintain their desired lifestyle, no matter how much they earn.
For me, financial mindfulness not only provides a sense of security but also allows me to make choices that align with my values.
Why do I want to talk about this?
Maybe because a lot of women, in particular, are still hesitant to discuss money, and investing might feel like an unfamiliar concept. I encourage you to explore the topic and take charge of your finances!
