Taking Steps to Financial Freedom…
As sit here with my coffee writing about my wealth plan, I have to admit I’m a little nervous. Talking about personal finance is always daunting. However, a woman talking about proactivily persuing wealth? Well, that’s what the Chad’s get their knickers in a twist about.
The truth is, stopping women talking about money is all about keeping us small and allowing the patriarchy to thrive. Money equals power and the patriarchy doesn’t want women to have power.
In my 2024 new year goals, I spoke about wanting to enter my wealth era. This year, I’m on a mission to increase my networth. My goal is to have over £100,000 in networth by the time I’m 35. Thus, the need for my wealth plan.
My Wealth Plan.
This year, I’m aiming to end the year with £50,000 in net worth. Currently, as I’m typing this, I’m at 52% of my wealth goal reached. Personally, I know reaching £50,000 is most likely not going to happen this year. It would take A LOT for it to happen. However, even getting 80% is still a huge acheivement.
So how am I tackling hitting my wealth plan for increasing my net worth? I’m looking a serveral accounts that will contribute to my net worth:
- My pension plan
- Deposit towards our future home
- My smug funds
- Stocks & shares
- My emergency fund
My pension is made up of my Moneybox pension, which is all my previous work pensions in one place, along with my current employer workplace pension. I’m incredibly lucky, in which my work will double my match, so I’m currently putting away 15.5% of my yearly salary away, but only paying 5%. This is going to make up the most of my net worth, which future Elle is going to be incredibly grateful for.
Our Future Home.
If you’re following me on YouTube and Instagram, you’ll know that the dream of owning a home is something that I’ve wanted for a while. However, that dream is going to become a reality within the next 18 months. Hopefully sooner rather than later. I’m looking to boost our deposit whilst we decrease our debts and build up our smug funds.
When we eventually buy, I’m going to consider the part that we paid for (seperate from what we borrowed) as part of our net worth. Gradually, as we pay off our mortgage, I’ll consider our net worth increasing. It’s going to be a slow process and honestly I’m just excited to finally own property. Saving for a home with no financial help from family is daunting and I know when it happens I’m going to bawl like a baby once this milestone is hit.
Smug & Emergency Funds.
These are the areas of my personal finance that I’m working on actively each and every month, along with our home deposit. As sad as it is to admit this, I’ve plotted out my savings for the next 12 months. You’ve got to do what you need to in order to motivate yourself!
Your emergency fund is exactly what it says it is. It’s one to six months of your salary. If anything were to happen, you have a safety net. This year, I’m going to work on building up one year’s worth of an emergency fund, moving to three to six months next year. My hope is by year three, I’ll have a year’s worth of an emergency fund saved.
Smug funds are the pots of money that are going to make me feel like I’m truly in my wealth era. These are made up for the following categories: Dash, Car, Celebrations and Era’s Tour. Now, the era’s tour one, is a short-term smug fund to ensure I have the best time at the concert this summer. But the rest, are pots of money I want to actively build up quickly, but then will be small contributions to top up if I ever have to dip into them.
The Dash fund is for our puppy, in case of emergency vets or medicine. The car fund is for insurance and MOT. And finally the celebration’s fund is for birthday’s and Christmas. There is also a holiday smug fund, but we’ll work on that one in 2025.
The reason why I call them smug funds, is because I want to have that smug feeling of being able to pay for something without it affecting my everyday budget.
Looking Forward to the Future.
If all goes to plan, I’ll hit all these being filled by the end of the year. It’s going to be a lot, but honestly, seeing numbers grow and that percentage get closer to 100 is truly an addictive feeling.
If you are looking to go on a wealth journey, here are some of my favourite personal finance books that I truly believe you guys will enjoy.