My Journey Towards Financial Freedom
Follow me as I document my journey towards financial freedom.
I hope by sharing my experiences and mistakes, you can gain insight from them and use them to your benefit as well.
My bank account was negative again today. It’s been negative consistently towards the end of the week for the past few weeks. This time, I had to transfer some money over from my investments to cover some bills coming through. Usually, my overdraft protection in the savings account linked would cover everything. I chose to start paying with cash for everything during the holidays. This meant buying all presents with cash, too. I’ve also been working overtime every week since December.
Thankfully, my job has allowed us to work overtime for the first time. I’ve been with my company for 9 years now, and they rarely allow any overtime. I’ve been working at least 6 hours extra per week, sometimes working up to 12 hours extra. I already have long days since I work 4 days a week, 10-hour days. I really want to use the option to work overtime to my benefit. Hopefully, attaining financial freedom sooner versus later.
I recently increased my work retirement account (457B) percentage from 10% to 20%. After 9 years, I realized I have not been maxing out my retirement account. I have been shorting it by a few thousand dollars every year. I’m not sure if this was the best time to increase the percentage, but I did it last month anyway.
My thought process is that I want to take advantage of all the tax benefits I can. I pay so much in taxes now and can no longer claim my children. This year, I plan on maxing out my FSA. Hopefully, with these changes, it will decrease my earned income, which means I pay less in taxes, too. Hello, financial freedom!
I never really looked into tax benefits before because I never had to. I never paid a lot of taxes before, either because I never made a lot. Whatever I did earn, I was able to claim my three girls during tax season.
As I mentioned in my previous blog, My Journey On Learning How To Manage Money, which you can find here, I started taking the initiative towards financial literacy through books and other resources. This included learning about how to move some income around (into a qualifying retirement account or FSA/HSA) to decrease taxes.
Because the higher you earn, the higher the tax bracket you fall into.
Not complaining about my tax bracket. This was just something I didn’t understand.
Okay, back to my negative checking account. I think the holidays really took a toll on my account. However negative my account is or was, I am truly grateful that I was able to buy gifts for my friends and family. Now that the holidays are over (including my birthday that was at the beginning of January), my bank account will hopefully go back to normal. Plus, I’m working a lot of overtime now since December, as I previously mentioned.
In fact, back in November, I was anticipating the holidays and looking for a second job. It didn’t take long for me to find a second job. In fact, I was hired on the spot. The position was per diem, which was perfect for me. I went to my orientation, and after that, I never heard from them again. No, it wasn’t fraud. The facility is near my home. I completed a W2 and have already gotten paid for showing up on orientation day. It’s totally fine by me that I haven’t heard from them because I am working overtime at my current job pays more than if I were to go to a second job.
This was the first time in a long time, I had to transfer from my investment account.
It really hurt, but again, I’m grateful that I have the money to do so. I feel like this journey towards financial freedom will obviously be a slow one, but I realize it will also be a bumpy one. As long as I’m consistent, I know I will get closer to my goal of financial freedom. I did it once before with a lower salary and can definitely do it again.
I spent quite a lot today, and I didn’t even leave the house! My new son-in-law’s parents traveled from the UK for the wedding (which already happened on Friday). We were supposed to have dinner together tonight, but my daughter’s mother-in-law got sick. I was too scared to get sick, so I skipped meeting up with them. I have to go into the office next week and can’t jeopardize getting sick. However, I offered to buy them dinner since it was there last night in the US. It came out to $120! Which I paid for in cash. Later, my daughter bought me Mexican food, and I transferred $16 to her. So in total today, I spent $136, and that was only on food!
This Sunday, it’s my friend’s birthday, and we’re planning on going on a small hike, then a nice dinner, so I know I’ll be spending money again. And in February, it’s my oldest daughter’s birthday. I was able to book a trip for us to Portland. Don’t worry, I didn’t charge anything. I was able to get my ticket with points, and her ticket was a free companion pass. I reserved a hotel and haven’t paid yet, but I plan to pay in cash. I’m just a little worried about food out there.
I really want to get out of debt, but I really want to enjoy my time with my children as well.
She lived in Shanghai for five years, and four of it was during the pandemic. Having her home and getting to spend time with her has been the best thing in the world! I missed 4 of her birthdays. Now, she’s married and living with me temporarily.
Like I said before, this journey towards financial freedom is going to be hard. I get stuck with wanting to pay off my debt, but then I also want to live my life. About two years ago, I lost a very close friend to cancer. Last year, I had a cancer scare myself. I was even referred to the same oncologist as my friend who passed away. I know how precious life is, so I want to live it to the fullest. Obviously now, I want to be smarter, but not too strict where I’m not living.
When I withdrew from my investments today to deposit into my checking, I also stopped all of my automatic deposits into my savings, investing, and retirement accounts. I want my checking account to stabilize first. The only account I didn’t stop was my retirement account through work, which, as I mentioned above, I increased to 20%.
Apparently, my company will allow us to work overtime until March. It’s about mid-January now, and I have received about three checks that included overtime. Most of which went towards the holidays and celebrations. I’ve also been selling items on Mercari and Poshmark again and trying to find different avenues to earn more income. It’s a slow process. But again, I know if I stay consistent, I’m hoping it will be fruitful and a little closer to financial freedom!
Sometimes, I just want to take all of the money I saved and invested and just pay off my debt.
But then I’m so scared that I might need that money for whatever emergency that may happen, and I will need the cash.
Anyhoo, thanks for reading my first journal entry and coming along with me as I get my shit together.
Oh, by the way, I finished reading Financial Feminist by Tori Dunlap, which you can find here, and love it! I love it so much, I keep trying to encourage my daughters and friends to read it. I highly recommend this book! It gets into the history of money and the patriarchal system it was built. Definitely opened my eyes to my own financial illiteracy.
Currently, I’m listening to Get Good With Money by Tiffany Aliche. I came across her book because I really enjoyed her on Mel Robbins’ podcast. I loved her story and just who she is. However, I must admit, I am finding it hard to get through her audiobook. I’ll keep you posted!
Love, Sutivi