Workshop Financial Know How

Posted on za 19 april 2025 in workshop

This workshop is currently in the dreaming phase (see Dragon Dreaming). I use this document to collect things I would want to say about the topic of money and personal finance. I appreciate feedback on it. Leave me a message via the contact form.

Background

I see people struggle with money. There's never enough. It brings stress and anxiety into their lives. I can sense fear surrounding the issue of money.

It seems to me that many people lack basic skills to deal with money. And a lack of courage and interest to honestly look at one's financial situation, maybe out of fear of finding out just how bad the situation is. I hear stories in the news of people not having enough money to cover an unexpected expense of a few hundred euros. That's worrying.

After my divorce in 2013, I radically changed my life. For one I started cutting my expenses. The next four years, each year I managed to shave 10% from the budget. Before I would spend 25k€/year. Now I am spending about 15k€/year. And I find that my quality of life has greatly improved: I eat better food, I have more time to spend with friends and family and I can spend my time on activities that I find meaningful.

With this workshop, I hope to inspire other people to do the same. To take their life's direction into their own hands.

Outline

Workshop Financial Know How (financiële kennis en kunde)

  • Workshop goal

    • Increase awareness on money and about money

  • Goal beyond the workshop

    • living a good life
    • no financial worry
    • no feelings of deprevation or lack

  • Mindset

    • how do you talk to yourself and others about money?
    • what are your expectations of money?
    • what are your beliefs around money?
      • money is power
      • money is security
      • money can buy me things: a vacation, an expensive dinner, fancy clothes, awesome adventures
    • how was money treated in your family growing up?

  • Guiding principles

    • One iron rule of personal finance

      • Incoming flow of money need to be greater than outgoing flow of money

    • Mindset is key

      • unconscious expectations and convictions about money drive decisions
      • be interested in this part of your life: nobody cares more about your money than you
      • make the unconscious conscious to affect rapid change

    • Observation is essential

      • keep meticulous records: know exactly where your money is going, when and how much

      • review money flows on a regular schedule, at least once a month

      • "Know Thyself"

        • what are your needs and wants?
        • how do you go about getting your needs met?
        • how is that working?
        • what is important to you?

      • assess the situation honestly and with a willingness to do things differently going forward; let go of judgement and blame

        Start where you are. Use what you have. Do what you can. -- Arthur Ashe, American athlete

      • use metrics to help guide you

      • keep your partner in the loop

        • share your observations
        • share your findings
        • share key metrics
        • make suggestions
        • be sensitive to the emotional state of your partner
        • listen to suggestions from your partner

    • Use a holistic approach

      • experiment, have fun
      • because everything is connected
        • changing your job can change the way you commute
        • starting a business will bring lots of small and big changes
      • use a web of goals approach
      • be aware of other forms of capital
        • living, material, intellectual, experiential, social, cultural and spiritual
        • find ways to increase their flow into your life to meet your needs

    • treat your finances as if you were running a business

      • a business needs to show a profit year on year to keep existing
      • think about investments, i.e. things that generate income
      • assign the role of bookkeeper / accountant / controller

    • treat managing your money as a game, a challenge

      • cost cutting is then not a punishment nor to deprive you of happiness, it is to get you to a better place
      • get your creative juices flowing on finding ways to cut costs and to increase income without sacraficing your happiness or contentment
      • sometimes things will get tough, or difficult before they get better

  • Visualization

    • a bathtub leaking with holes and a faucet trying to fill it

  • Metrics

    • assets (bezit)
    • liabilities / debt (schuld)
    • equity (eigen vermogen)
    • saving rate (spaarsnelheid)
    • burn rate (leegloopsnelheid)
    • cashflow / buffer needed for liquidity
    • spending per main category
      • taxes
      • food / health
      • housing / energy
      • transportation
      • stuff
      • relaxation / media / attractions / going out
      • other
    • rankings
      • top 10 biggest spendings per year
      • top retailers where I spend my money
    • ERE Wheaton level

  • Tools

    • your will / determination
    • notebook to record expenses (huishoudboekje)
    • spreadsheet software: LibreOffice
    • accounting software: Gnucash

  • Practical

    • What does not go out, does not need to come in!
    • reduce spending
      • to reduce spending is easier than increasing income
        • spending is entirely under your control
        • getting a raise depends on other people
      • find and contemplate on recurring expenses
        • Does it spark joy?
        • can I find a similar service for less money?
        • is the current service still a good fit or can I move to a smaller / cheaper plan?
      • find and contemplate on the biggest categories
        • usually these are: food, housing and transportation
        • transportation: live closer to job
        • transportation: use a smaller / cheaper vehicle
        • transportation: drive less, cycle or walk more
        • housing: move into a smaller home
        • housing: pay off mortgage
        • insurance: can I self-insure this type of loss?
        • debt: use snowball method for paying down debt
      • find and contemplate on large one-time expenses
        • how can I avoid this expense in the future?
          • did I really need this?
          • use a cooling-off period before actually buying
          • keep up with maintenance
          • buy a better product
          • buy a second hand product
          • can I do the repair or maintenance myself?
      • brainstorm on other ways to cut spending
        • food: once a week grocery shopping
        • food: use a shopping list
        • food: learn to cook
        • food: buy in bulk
        • food: supplement with foraging
        • energy: keep track of usage and share weekly with co-habitants
        • energy: turn off lights, gadgets, heating, cooling when not in use
        • energy: shower less and shorter
        • taxes: use tax deferred accounts
    • increase income
      • brainstorm on ways to get more money flowing in
        • ask for a raise at work
        • put unused money in a savings account
        • start investing your money
        • rent out a spare room (if you have one)
        • rent out use of your car (if you have one)
        • start a side gig repairing stuff for other people
    • change your life's direction
      • start a business
      • take care of other people's homes, pets, cars, etc.

workshop personal finance forms of capital