How financial moderation will bring you freedom

Marketers have convinced us that all the really valuable things in life have to be paid for. We have no doubts about this, because who does not like interesting trips, delicious food, good clothes, comfortable furniture, modern technology. Who can do without gifts for relatives, without a home, without a car?

But do we understand what we are losing by wasting money on all these things? If we knew that our daily spending deprives us of the most important things in life - time and freedom of action - would we not dare to change our approach to spending?

How Moderation Will Give You Back Professional Freedom

Very often we are so dependent on the salary at our current place of work that we hesitate to do an interesting job if it seems less profitable. Financial moderation will give you the chance to give up jobs that don't bring you satisfaction and happiness.

If we start spending less every month, we can save a certain amount of money and choose the job that interests us, even if they pay less for it. This concept is called F-You Money. Its essence is that, having a certain amount of money, which is enough for us to maintain the desired standard of living, we can "send" our work at any time, if something does not suit us in it.

Also important for moderation is the so-called rule 173. Thanks to this rule, we can calculate how much we will accumulate in ten years if we reduce expenses in some area and instead invest the saved amount. In this case, the calculation is based on the profit rate of 7-8%.

For example, if we reduce monthly expenses by at least 1,000 rubles and calculate according to rule 173, it turns out that in ten years we will save 173,000. This is a good reason to think about your spending.

How Moderation Will Give You Back Your Life

Think about what else you would like to devote your time to besides work. Remember what is especially important to you in life. Financial moderation will help you find time for your favorite activities.

If nothing comes to mind right away, here are some options:

more time with your children;
more time for sports;
more time to monitor your health;
more time to travel;
more time to be creative;
more time to volunteer and help non-profit organizations;
more time to start your own business.

If you want financial moderation to really bring freedom, decide what activities fill life with meaning for you personally. Take a pen and paper and make your list.

Important questions

Of course, all this is not as simple as it seems in theory. There are no rules that fit everyone. But don't immediately dismiss the idea of financial moderation as untenable. Think, really think about how you can change the way you spend. The following questions will help you figure it out.