How Taking Control of My Finances Early, Changed My Life

When I first started working, I realized that managing my personal finances would be key to building long-term stability and achieving my financial goals. Like many others, I wanted to develop a plan that balanced both saving and investing. But more importantly, I wanted a strategy that I fully understood and felt genuinely passionate about.

Since 2020, I’ve been using Excel to take control of my finances. This tool has been fundamental in helping me track my spending, set goals, and make smarter financial decisions. By consistently tracking my finances, I’ve been able to spot trends, avoid common mistakes, and even make projections for future decisions (Like when I had to decide whether moving to the Netherlands was a good idea or not).

I'm excited to announce that soon I’ll be making the template I use, available to everyone! If you're interested in learning more, feel free to send me a PM, and stay tuned for updates!

Here’s how I structured my financial strategy:

Building an Emergency Fund: The First Step

The first step I took was to save every penny I could, with the clear goal of building an emergency fund that could cover at least six months of my living expenses. This safety net gave me peace of mind, knowing I had a buffer against any unexpected financial setbacks. After less than a year, I reached that goal, and with the added security, I felt confident and ready to take on bigger financial challenges.

Investing Wisely: A Balance of Knowledge and Passion

Once my emergency fund was in place, I started to focus on investing. My approach to investing has always been simple:

I only invest in things I truly understand and have a passion for staying informed about.

That led me to split my savings in two directions:

1. 50% into Investments: Half of what I saved went into investments, primarily ETFs, Retirement funds and Cryptocurrencies. I chose these because they align with my interests and are areas I feel confident in understanding. One of my core principles is diversification: Spreading investments across different asset classes to minimize risks. This gives me peace of mind while taking advantage of potential growth opportunities in markets I trust.
2. 50% into a Strong Currency and Value Reserve Fund: The other half of my savings went into what I like to call a reserve of strong currencies and stores of value. This is a diversified basket I’ve built over time, consisting of Euros, U.S. dollars, Gold, and Bitcoin. Each asset serves a unique purpose: Euros and Dollars provide liquidity, Gold offers historical resilience, and Bitcoin acts as a hedge against inflation and, naturally a digital store of value. In addition to holding liquidity, especially in euros, I use this portion of my funds to invest in personal projects, skill development and anything that supports my physical and mental health. This allows me to not only secure my financial future but also invest in myself and my overall well-being, ensuring a balanced approach to growth and self-improvement.

A Structured Strategy for Financial Growth

This strategy with an emergency fund, balanced investments, a reserve of strong currencies and value stores, has given me a structured approach to my finances. It’s a strategy that allows me to sleep easy, knowing I’m prepared for both the present and the future.

If I could give one piece of advice to anyone starting their financial journey, it would be this:

Understand where your money is going, invest in what you know, and always be prepared for the unexpected. It’s never too early to start managing your finances in a way that brings security and opportunity.

What about you? Have you started taking control of your finances, or are you still figuring out where to begin? I’d love to hear your biggest financial challenge or the strategy that has worked best for you.

let’s share insights in the comments and learn from each other’s experiences!