At TLR, Friday is sometimes much more than the end of the week. Once a month, Friday becomes a window into the minds and passions of our community thanks to our regular TGIF event. As part of our Thank God It’s Friday series of events, a TLR member or guest steps forward to share something they know, love, or believe the rest of us could benefit from.
From tax advice to cycles across the USA, we’ve seen it all. And this time, we kicked off the new year with a surprisingly uplifting take on a topic that can send shivers down even the most seasoned digital nomad’s spine: money.
If the word ‘finance’ makes your brain shut down, you’re not alone. At our most recent TGIF, our dear member Alice, who is a chartered accountant and personal finance YouTuber, set out to demystify money in a way that even the most numbers-averse among us could get behind.
With a room full of entrepreneurs, freelancers, and remote workers, Alice laid out a clear and accessible 5-step system to help us understand, manage, and grow our money – no financial jargon required. From emergency funds to ETFs, her approach was refreshingly practical, flexible, and full of wisdom for real-life scenarios (yes, even Christmas shopping and broken boilers made the cut).
Her mission? To prove that financial freedom is not just for Wall Street bros or six-figure savers. Actually, it’s something all of us can work towards with simple steps and a bit of structure.
Step One: The Spending Plan (Not the “B” Word)
Let’s be real: the word ‘budget’ doesn’t exactly inspire a boatload of joy. That’s why Alice reframes it as a spending plan and describes it as a tool for freedom, not restriction.
She introduced us to the 50/30/20 rule: 50% of your income for essential expenses, 30% for guilt-free fun, and 20% for saving and investing. But she didn’t stop there. She explained how ‘sinking funds’, little pockets of money you set aside each month for irregular expenses like gifts, car repairs, or holidays, can remove the stress of surprise costs. (Yes, the envelope system has gone digital, and apps like Revolut make it easier than ever.)
The key takeaway? Know where your euros are going. And remember: if your essentials are taking up more than 60% of your income, something’s out of balance and either your income needs to go up or your lifestyle needs to come down.
Step Two: The Starter Emergency Fund
Once your spending plan is in place, it’s time to build a €1,000 emergency fund. This safety net is designed to protect you from life’s unexpected curveballs, like a broken phone, a surprise dental bill, or a last-minute flight.
Why €1,000? Because it’s a realistic, achievable goal that still offers serious peace of mind. And crucially, Alice emphasized the importance of automation and setting up your account so your savings are deducted the moment your income arrives.
“Don’t rely on willpower,” she told us. “Make it automatic, and you won’t even miss it.”
Step Three: High-Interest Debt? Kill It Fast.
Before you dive into investing or bigger savings goals, you need to tackle any debt with an interest rate above 7%.
Alice introduced us to the “7% Rule”. If your debt costs you more than 7%, it’s likely eating up any gains you could be making through investing. The sooner you pay it off, the sooner your money can start working for you instead of against you. Car loans, credit cards, personal loans? Time to clear the slate.
Step Four: The Full Emergency Fund
With high-interest debt behind you, you’re now ready to build a more robust safety cushion: a full emergency fund covering 3 to 6 months of essential expenses.
The actual amount depends on your life situation. Stable job with no dependents? Three months might be enough. Freelancing with a family? Go for six. And while this step can take time, Alice reassured us it doesn’t need to delay investing. Just split your 20% between both goals.
And if you’re letting your savings sit in a regular bank account, it’s time to upgrade: accounts with high-yield interest (like Revolut’s 3%) help your money grow a little while it waits.
Step Five: Investing (Yes, Even If You’re New)
This is where the magic happens. Alice broke down the final and most powerful step: investing your money so it grows while you sleep.
She emphasized that time in the market is more important than how much you invest. A simple €200/month in the S&P 500 over 30 years could grow to over €400,000. Add just 5 more years and you could end up with nearly €700,000. That’s the power of compound interest, and why starting early matters so much.
She walked us through different vehicles for investing, including pensions (which offer major tax benefits), stocks and shares, and ETFs that are low-cost, diversified index funds that let you invest in the top-performing companies around the world. Her recommended split? 80% ETFs, 10% individual stocks and crypto, 10% bonds or cash.
And her final golden rule? Don’t try to time the market. Instead, use dollar-cost averaging: invest the same amount regularly, regardless of what the market is doing. That way, you avoid the highs and lows and build a portfolio that’s consistent, long-term, and relatively low-stress.
From Fear to Freedom
Whether you’re a spreadsheet junkie or a financial-phobe, Alice’s talk offered something for everyone. Her 5-step system was clear, empowering, and refreshingly honest. And, judging by the number of questions at the end, it sparked a new sense of confidence for many of us in the room.
From the importance of automation to the magic of compound interest, one message stood out: financial freedom isn’t about how much you earn. It’s what you DO with it that matters.
Huge thanks to Alice for bringing the money talk to TLR minus the shame, stress, or stockbroker suits. To connect with Alice, follow her on Instagram and on YouTube as @AliceTheAccountant.
Are you a TLR member with a story to tell? Let the TLR team know. We’re always excited to hear what you’re working on. And who knows? Next month YOU could be giving the TGIF!
To attend the TGIF, or any TLR event, you must be a TLR Family member, or the guest of one. Our subscriptions start from €50/month. If you’re not yet a member and would like to get involved, check out our subscription and book a free trial day here: https://tlr-coworking.com/subscriptions/
