What financial season are you in right now?
For the last five years, I lived in a "golden financial season” of life.
I was saving and investing over 50% of my income, chasing FIRE (Financial Independence Retire Early).
I worked tirelessly, increasing my salary, managing a rental property, and building Amsterdam Financial Coaching on the side.
All while keeping my personal living costs as low as I comfortably felt I could.
But I always knew this golden financial season wouldn't last forever.
Earlier this year, Carlos and I got married and decided to build our next life chapter together. That includes buying a larger apartment in Amsterdam and, hopefully, starting a family.
This month, we are moving into our new home.
As a result, my personal expenses are increasing by 30%.
Meanwhile, I’m also facing income uncertainty with a corporate re-organization and unexpected vacancy at my rental property.
For the first time in years, my savings and investing rate will drop significantly. In fact, as a result of life changes, I expect to invest very little extra over the next few years.
Sound like a familiar situation?
While this shift feels scary, I feel prepared, both financially and emotionally.
Whether you are currently in a "golden financial season" or navigating a tighter cash flow season, read on, perhaps this article offers some perspective.
If you are in your “golden financial season”
Are you putting aside at least 20% of your net income every month? If so, you are in a prime position to accelerate your long-term wealth.
This is your opportunity to front-load your investments.
That is exactly what I did over the last five years: I invested aggressively so that the capital accumulated can compound in the background without requiring me to add any more to it for my retirement.
This is called reaching Coast FI (Financial Independence); more on this in a future newsletter.
Now that I am going into a more expensive and uncertain phase of my life, I feel less financial pressure as a result of having front-loaded my investments.
If you are in a tighter cash flow season
Meaning your expenses are consuming most of your income (>80%) and it feels difficult or impossible to save consistently, let alone invest, please hear this first: you have not failed.
You are simply experiencing a season of tight cash flow. It usually happens when life transitions cluster together, and it is often temporary.
After my "golden financial season” of life, I am now entering a tighter cash flow season: my expenses are going up from 50% of net income to 65% due to higher housing costs associated with buying the larger apartment together with Carlos.
But my rental income is also stopping (tenants moved out unexpectedly), and I am impacted by a re-org at the company I work.
Which means my expenses are projected to go up as high as 88%, depending on how my income will fluctuate due to these changes.
Add future childcare costs on top of this... and voila: no more financial room breathing room.
Am I anxious about it? A little.
Am I panicking? No.
I have been expecting this change. I have been preparing for it.
Money exists to fund our desired, best lives, not just help us get by or grow aimlessly on a spreadsheet.
Plus, I believe we all have the ability to figure things out. Professionally to earn money, and financially to make our money work hard for us.
What season of finances are you in right now?
Whichever it is, you don't have to navigate it alone:
If you're in a golden season: Let’s put your surplus cash to work strategically so it buys you future freedom.
If you're in a tighter cash flow season: Let’s optimize your finances, eliminate money anxiety, and create breathing room until the season shifts again.
Book a free 25-minute Q&A call here to see how we can work together.
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