How do you deal with work and money for now and for the future? Do you live one day at a time, or are you consciously planning your financial future? And are you setting things up for your future yourself, or do you belong to a pension fund? Sandra Boon lives as a “digital nomad” and can work anywhere in the world – as long as there is Wi-Fi.
Sandra Boon (30)
Profession: online entrepreneur
Works how many hours a week: between 20 and 40
Income: between 1500 and 2500 euros (net)
Savings: 10,000 saved, 15,000 invested
Pension set up? Yes
What exactly do you do?
“I am an online entrepreneur, and I do web design and online marketing, among other things. I also have a blog, I wrote a book about how I deal with money and I teach a course on dealing with money. I started my own business at 16 and taught myself everything from building websites to coding. I never had a paper route or a side job in a supermarket.”
How many hours a week do you spend on your business?
“It varies. When I’m in the Netherlands it’s usually full time, but when I’m on the road it’s more like twenty hours a week. I earn part of my income passively through affiliate links on my blog, among other things. When people buy something through those links, I get a certain amount. And when people buy my book, it is sent by another company. That brings a lot of peace of mind. I love being able to plan my own time, it feels very free. When you travel, you don’t always have the option to work; if you’re an online entrepreneur and there’s no Wi-Fi, that’s it. I have a small camper that I travel around in. I just spent over five months away, with my dog, who unfortunately passed away a few weeks ago. The fact that I can now take some time to deal with this is also one of the benefits of the way I’ve arranged my life.”
How much money do you make?
“On average between 1500 and 2500 euros a month, net.”
The less I spend, the less I need to work
Are you happy with that?
“I think it’s absolutely fine. I did earn more before; there were months when 8,000 euros came in, but then I would spend just as much. I traded in my old Toyota for an Audi, we moved from a small social housing unit to a large semi-detached house. Everything was upgraded, but that didn’t make me happier. I had to work very hard for it and outrun myself. It just wasn’t worth it to me.
A few years ago, when my relationship ended, I realized that I had nothing to show for all that hard work. That’s when I then changed my whole lifestyle in order to manage my finances a little better. I started saving for my retirement, bought a small house and started to watch my spending. Now I’m in the position of having things pretty well sorted out. That gives me a lot of peace and freedom. I don’t need to make a lot of money. The less I spend, the less I need to work. People who don’t know me think I’m a bit of a slacker. And there actually are weeks when I don’t do anything, but I can afford that. I created that luxury myself. I’m very glad I made that choice, because otherwise I’d still be living from paycheck to paycheck, so to speak.”
How much do you have in savings?
“I usually keep around 10,000 euros purely as savings, and in addition I also have about 15,000 euros invested.”
What are your basic monthly expenses?
“In total, they amount to about 1250 euros. The largest part goes to housing costs, my mortgage at 750 euros a month and the VvE at 125 euros. I also pay 105 euros a month for electricity, 89 euros for health insurance, 38 euros for insurance for my camper and I have subscriptions to Spotify (10 euros) and Netflix (8 euros). Depending on what I earn, I also put some away every month for my pension or on my investment account. But that’s not a fixed amount every month.”
What else do you spend money on?
“Mainly on travel, groceries and fun things, like eating out with friends or a day trip. I usually keep around 500 euros for variable expenses every month. When I'm traveling, I don't necessarily spend more than I do in the Netherlands. I have more fuel costs, but otherwise the costs remain fairly similar. I often stay at free campsites and I really don’t eat out three times a week. You can make it as expensive or cheap as you want. As much as possible, I want to spend my money on things that really make me happy.”
What do you save on?
“On anything I’m not interested in: clothing, makeup, getting coffee from a coffeeshop, furnishings, subscriptions, insurance. When it comes to energy in the house, I’m also super frugal; I take quick showers and rarely turn on the heating. But I would never sacrifice my quality of life to save money. You don’t have to, it’s up to you. You just need a lot less than you think. I noticed that again during my travels in the past few months. I didn’t have much with me, but I didn’t miss a thing.”
I want to live well and enjoy life, now and in the future
Are you making arrangements for your old age?
“Yes, for a number of years now I have had my annual margin invested by a pension provider for entrepreneurs. I have been working on it a lot lately, but not so much that I am putting in a fixed amount every month. I believe I have deposited 7,000 euros in two years so far. I put it off for a long time before, thinking I'd start putting in more when I was earning more. But instead of putting it into my retirement pot, I would spend it. It didn't feel right that I hadn’t accrued anything yet, so now I’m catching up in a big way. I don’t want to be poor when I get older. I want to live well and enjoy life, now and in the future. One doesn’t have to preclude the other.”
Do you see any improvement points with respect to your pension?
“I’m not where I want to be yet, I plan to put in more in the near future. But I think I’m on the right track and things will work out. Including the state pension, I’ll probably end up with around 2000 euros a month, and by that time I’ll have paid off my house, so I’ll be able to make ends meet.”
How do you picture your life by then?
“I would like to be on Gran Canaria or something, living the good life. Eating out a lot, doing things; anything but sitting at home and getting a cup of coffee at the snack bar once a week.”
Does money make you happy?
“Yes, especially because of the freedom it gives you. But it is a means, not an end in itself. Because I got my finances in order and rearranged my life, I don’t have to worry about money. As a result, I was able to escape the winter with my dog and experience the last chapter of his life with him in a special way. This would not have been possible if I had been penniless.”