Discovering Financial Hygge: A Personal Journey
Welcome to Hygge Finance blog!
I'm Gunel and I'm here to share my personal journey that led me to become a financial coach.
With a background in finance, I spent over a decade working in corporate finance in both London and Amsterdam. Despite my financial education and years in the world's financial hub, I was far from being financially comfortable. I was living paycheck to paycheck, in a houseshare, working hard and had no savings. Credit card debt crept up gradually, fueled by occasional holidays and extravagant outings, all conveniently charged to my credit card, with just the minimum payments being made.
The prevailing sentiment among my friends was, "It's London; you just can't save money here."
Money conversations were rare, often met with shrugs.
But then, a few years ago, I craved a change. I yearned to be debt-free and decided to make it happen. I started saying "no" to vacations, brunches, last-minute getaways, and other indulgences. My focus shifted to paying off my debt, which had reached almost £20,000 at one point. It took nearly three years, but I did it, and it felt absolutely incredible!
Over those three years, I delved deep into personal finance, learning about money mindset, credit cards, debt management, and investing. The more I learned, the more I wondered, "Why isn't this stuff taught in schools or universities? I studied finance for five years, yet I didn't know how credit scores are calculated, for example! That's simply mind-boggling."
Being Intentional in Finances
Around 2017, I decided to take control of my money, especially to pay off my debts. That's also when I was pulled into minimalism and intentional living, which transformed not only my personal finances but also my professional life.
Minimalism, to me, meant simplicity and making choices that truly mattered. I began asking two essential questions about my spending:
Does it make me happy?
Is it truly necessary?
I evaluated all my expenses based on the genuine joy they brought into my life, leading me to spend less on things that didn't matter and more on things that did. Whether it was buying a new pair of shoes, or going away on a holiday - asking myself whether it was necessary prompted me to stop spending on things that weren’t essential. These habits took time to develop, but they made me more mindful about my money.
My newfound money mindset naturally extended into my job as a financial manager. I observed businesses wasting resources—money, time, and labour—in unusual ways:
Excessive meetings - many companies held meetings just for the sake of it. I wondered if there were better ways to achieve results.
Unnecessary reports - countless reports were created, were they necessary?
Challenging the norm - minimalism encouraged me to challenge traditional practices. I began looking for easier and better ways to work.
By incorporating minimalism and intentionality into both my personal life and work, I learned to focus on what truly mattered, eliminate the unnecessary, and simplify things. This journey not only improved my financial life but also helped the businesses I work with make smarter and more purposeful money decisions.
Financial Hygge
Imagine the cosy warmth of a crackling fireplace on a chilly winter's night—that's the essence of the Danish concept of hygge. It's about finding comfort, contentment, and well-being.
Now, picture extending that feeling to your financial life:
When your personal financial goals align with your daily life
When you make intentional choices with your money
When your business finances support your goals
When you achieve financial security for yourself and your business
I call the above ‘financial hygge’, and to me, it has 3 foundations; simplicity, intentionality and peace of mind.
Simplicity - by decluttering your personal and business financial life, creating budgets that align with your values and reduce unnecessary financial stress.
Intentionality - by thoughtful spending, aligning your finances with your values and long-term goals, providing a profound sense of purpose in your financial journey.
Peace of Mind - knowing your personal and business financial futures are secure by establishing emergency funds, managing debts, and making informed investment decisions.
I firmly believe that financial hygge is a comprehensive approach to financial well-being centred on your happiness and peace of mind. By embracing these principles, I've experienced a significant reduction in financial stress, healthier relationships with money, progress towards my financial goals, and a profound sense of security.
I invite you to join me on this journey toward financial hygge, both personally and in business.
In upcoming blog posts, we'll explore these principles further and discuss practical steps for introducing financial hygge into your own life and business.
Stay tuned for more insights, tips, and personal stories.