Life is already hectic and complicated enough, and we all struggle with our own challenges. As I navigate through life, I’ve realized how much the decisions I made years ago and the insights I gained over time helped me achieve noticeable financial security.
A financial safety net is the foundation of financial security
A solid financial safety net is one of the most significant elements that help me maintain peace of mind. This safety net provides me with the confidence to face uncertain times and unexpected events without losing my footing. It allows me to stay calm and respond with composure in crises, a skill that has proven invaluable over the years.
I maintain a liquid emergency fund that covers at least three to six months of my living expenses. This cushion gives me the feeling of being well-prepared, ensures a certain level of independence, and reduces stress. More important than this classic emergency fund, however, is my long-term investment strategy, which focuses on diversification and security.
Building a balanced investment portfolio
From an early stage, I understood that it’s essential to set aside money for emergencies and invest wisely so that it grows over time and isn’t eroded by inflation. My investment portfolio is designed to provide short-term liquidity through dividends and long-term stability through diversification and growth.
And what can I say? It’s working. Year after year, the dividends keep rising, and in bull markets like the one we’re currently experiencing, stock prices can rise so fast that it almost makes me dizzy. Within a year, my portfolio has grown by €100,000 (about $110,000 USD).
Of course, these are paper gains, and the market could quickly swing the other way. However, my shares in these companies remain the same, and they even grow because I continue to buy additional shares monthly. This disciplined approach is key to achieving financial security and maintaining long-term growth.
Furthermore, many people forget that they can own more than one asset. In addition to my shares and dividend cash flow, I have human capital that I try to use as profitably as possible on the market. A little side hustle here and a little extra income there complete the overall picture.
Financial discipline and lifestyle choices
Another crucial aspect of maintaining a financial safety net is practicing financial discipline. I’ve learned to resist the temptation to increase my lifestyle expenditures just because my income is rising. While I enjoy life and luxury, my desire to make smart financial choices outweighs any urge to overspend.
Spending more money than I earn is, in every respect, a poor decision. So, I don’t do it. This discipline allows me to continue investing and saving without feeling pressured by lifestyle inflation, keeping my financial goals on track.
Learning from mistakes: embracing antifragility
Beyond the tangible aspects of a financial safety net, I’ve also realized the importance of embracing the immaterial understanding that I can be wrong. This realization is the first step; the second is understanding the consequences of those mistakes.
I don’t see mistakes as failures but as valuable opportunities for growth. This mindset shift happened when I began exploring concepts like antifragility, serendipity, and critical rationalism—ideas I delved into in one of my earlier articles. Antifragility, for example, teaches that systems, including human beings, can become stronger through stress, mistakes, and challenges. Serendipity highlights the ability to make meaningful discoveries by chance, while critical rationalism encourages constantly questioning and adjusting our beliefs.
Instead of letting failures discourage me, I view them as opportunities to improve and develop my thinking further. When projects go wrong, I look for the “fault” in myself. When criticized, I resist the reflex to defend myself and instead consider which of my actions may have led to that criticism and how I can avoid it.
This perspective has helped me cultivate a less dogmatic and more self-critical attitude. It has taught me to show more calmness and tolerance towards my shortcomings and those of others. As I said so many times before, accepting that mistakes are inevitable and necessary for growth has freed me from immense pressure and allowed me to make better financial and personal decisions.
Money isn’t everything: balancing financial goals with personal growth
While a financial safety net is crucial, I’ve understood that money isn’t everything. Many people believe that achieving financial success will solve all their problems and bring them happiness, but life is far more complex and multifaceted. Money does provide a certain level of freedom and security, but focusing exclusively on financial goals can lead to a sense of emptiness if other important areas of life are neglected.
For example, time spent with my child is invaluable and cannot be replaced. I know these are the moments I will miss the most in the future, so I consciously try to enjoy them now. Similarly, non-financial aspects such as health, relationships, personal development, and mental balance are just as essential for a fulfilling life.
I’ve also learned that focusing exclusively on financial goals can lead to burnout and dissatisfaction. Instead, I strive for a balance where my financial goals align with my other life priorities, ensuring they do not become a source of stress or overwhelm. I remain ambitious about money and salary, but I aim to achieve these through intelligent decisions, such as choosing the right job, negotiating salaries effectively, and making wise investments.
The path to financial security: the further you go, the easier it becomes
Another important lesson on my journey to financial security and personal satisfaction is the realization that the further you go, the easier it becomes to stay the course. At the beginning of my financial adventure, the road often felt rocky and long. The first steps, such as building an emergency fund and deciding on a long-term investment strategy, were filled with many uncertainties, self-doubt, and mistakes. It was hard to stay motivated when the successes were often small and difficult to measure.
But over time, I found that the effort was worth it. In a previous article, I wrote about how I managed to tenfold my annual dividends in six years. I realized that the biggest challenge lies at the beginning. The first savings and investments may seem small and insignificant, but the further you go, the more you benefit from compound interest and an increasing understanding of your finances.
The biggest hurdles often involve taking those first steps and persevering when progress isn’t yet visible. But once you are in motion, the journey becomes easier. Even then, however, it is important not to slack off but to maintain the course.
So, discipline is still necessary. But your sovereignty makes it easier to muster this discipline. It feels a bit like a tailwind. The wind doesn’t drive the ship to its destination on its own, but it helps while I am rowing.
The continuous growth of financial resources, the growing confidence in one’s strategy, and the increasing experience in handling money matters make it easier to stay the course and remain calm over time. This certainty that things further progress over time helps me clear my mind at night and sleep well.
Avoiding comparisons and focusing on “good enough investing”
It’s tempting to compare oneself to others, especially in toxic environments like Twitter/X, where people frequently boast about their successes or diminish the achievements of others. But I’ve learned that constantly comparing myself to others is more harmful than helpful. It distracts me, creates unnecessary pressure, and makes me feel like I’m falling behind instead of appreciating my progress.
People talk a lot.
I embrace the concept of “good enough investing,” which I discussed extensively in a previous article. This approach has helped me evaluate my investments independently of everyone else’s standards. Instead of constantly chasing the highest returns and the best investment strategies, I focus on following a simple, robust strategy that fits my personal goals and needs and – most importantly – lets me sleep peacefully.
Concentrating on what I can control – like maintaining a consistent savings rate, regularly investing in a diversified portfolio, and avoiding emotional decisions during market turbulence – gives me a sense of security and satisfaction. I measure my progress by asking whether I am more financially stable and content today than a year ago. If yes, I know I’m on the right track.
This approach has freed me from the burden of constantly striving for more and helped me realize that it’s okay not to always aim for the maximum. After all, my circumstances, goals, and values are unique, and my financial journey is my own. Understanding that I am doing enough—and that it is “good enough”—has allowed me to find both financial and mental calm. It has taught me to appreciate the value of “enough” without feeling pressured by external expectations or societal norms.
Aligning financial goals with life values
Navigating life’s complexities requires a thoughtful balance between financial planning and personal growth. By building a financial security net, investing wisely, embracing mistakes, and maintaining a balanced perspective, I am hopefully on a good path to financial independence and personal fulfillment. The journey isn’t just about accumulating wealth; it’s about aligning your financial goals with your values, enjoying life’s precious moments, and finding peace in knowing you are on the right track.
