Subscriptions can be a major player in trying to get ahead financially.
What can seem like a small amount of money, can be quite a lot when we multiply it by all of the months in the year.
- Phone: 100 DKK
- Brazilian Jiu-Jitsu: 500 DKK
- Sailing club: 200 DKK
- Boat Insurance: 20 DKK
- SOS Børnenbyerne: 160 DKK
- A-kasse: 470 DKK
- Union: 400 DKK
- Apartment Insurance: 300 DKK
In a total of 2150 DKK/Month (343 $)
2150 DKK x 12 months = 25.800 DKK/Year (4125 $)
That is more than 25 % of my yearly expenses.
It’s Getting Worse
The first stage of my financial independence journey is to have 10 times my annual expenses invested.
Said another way.
All of my subscriptions requires:
25.800 DKK x 10 = 258.000 DKK
As I’m writing this I still need 338.510 DKK to hit my 10x goal.
This means, that if I canceled ALL of my subscriptions, then I wouldn’t need the 258.000 DKK and I would be 258.000 DKK closer to my 10x goal.
152 Days from 10x
If I canceled all of my subscriptions my 10x number would look like this:
966.000 DKK (Current 10x) – 258.000 (My 10x subscriptions) = 708.000 DKK
Since my current networth is 630.000 DKK, I would only need 78.000 DKK to hit my 10x goal.
I have been investing on average 15.800 DKK/month since I started my new job.
This means that I could be 152 days away from reaching my 10x goal.
What do you think? Should I quit all of my subscriptions?