From Zero to 20,000 CHF in Six Months - My Budgeting Story
When I moved from Poland to Switzerland, I thought saving would be easy — until I realized I needed more than just a budget. In this first post, I share how I built my 24,000 CHF emergency fund, created the Freedom Budget, and finally started investing with confidence. 💪
Welcome, Money Essence Readers! ✨
Wow... I'm writing my first blog post! I didn't know I'd actually be starting with this one, but I thought it would be good to sit down and introduce myself to you.
So, hey there! 👋 My online alter ego is ME - yes, like me 😉. Am I hiding behind it? Probably. I prefer focusing on numbers and sharing them rather than talking too much about my private life.
The idea for this blog came naturally: I was doing pretty well with budgeting, but investing… that was a completely different story. So I thought: hey, why not write down my actions and results? Maybe someone will give me valuable advice, maybe we’ll spark discussions, or maybe someone will simply feel less alone in their financial struggles.
Honestly? My Polish teachers would be shocked to see me writing a blog 🙈 Especially my English teacher. But hey… motivation can work miracles! 💪
💡 A Look Back
Just a year ago, the thought of saving 20k in six months sounded like science fiction. And today? I’m hungry for more! 😏
If it crossed your mind somewhere that these are some kind of tricks - you're wrong! What actually sets the tone for the entire budgeting process is... more on that in a moment!
My Little Revolution – Moving from Poland to Switzerland
Before moving, I knew that saving was important. This was cultivated in my home, right alongside a healthy dose of distrust toward banks and financial institutions. And to be clear - I still don’t fully trust them, but at least I understand how they work now!
With the mindset that only cash (and maybe gold or real estate) had real value, I started my first budget back in 2017. I downloaded a template from some finance guru online, and it actually worked, but as... household bookkeeping. Somewhere along the way I discovered that “Pay Yourself First” really made sense, and I even dedicated my first real raise entirely to savings.
Typical First-Year Mistakes in Switzerland
The problem is that a budget without a goal doesn't provide real satisfaction. In 2022, I moved to Switzerland and... all my "systematic approach" collapsed.
The first year looked like this:
- I ate through my Polish savings (1000 PLN that I saved in Poland per month was barely 250 CHF),
- I completely gave up budgeting.
Later I found a stable job, but still… nothing changed. Only two years later, with a meager 2,000 CHF in my account, did it hit me: I needed a system. Not just a budget, but a whole personal finance philosophy.
And that’s how the Freedom Budget was born. Along with a set of habits that keep me in check, even when I’m tempted to overspend on snacks 😅
How Do You Build a Savings Habit in Switzerland?
No magic tricks here! The most important part was changing my behavior and mindset.
Yes, I managed to build my emergency fund - probably twice as big as it needs to be, since I based it on European rather than American standards…
However, the fact that I succeeded is thanks to building a saving habit. I could have done it faster by about a month probably, but systematic and methodical money saving helped me accumulate the right amount.
In short, habit-building comes down to 4 repeating steps 🔄:
Cue → Craving → Response → Reward
Here’s one example I built:
Monthly salary → I want freedom of choice → Transfer to savings → Joy from watching my progress bar grow 📈
Sneak peek: my game changer was a different habit with real, physical rewards! 🎁
The Road to My Freedom Budget
Why was the emergency fund so important to me?
I quickly realized the specifics of the Swiss job market. My profession is competitive - I always need to stand out in job interviews! 💼
I don’t want to stress about losing a job. I want to be ready for anything. So my plan was:
✅ keep learning and growing
✅ build an emergency fund in case things go wrong
That meant calculating my monthly fixed and variable expenses:
My average monthly expenses in Switzerland: 4,000 CHF
My emergency fund goal: 6 x 4,000 CHF = 24,000 CHF 🏦
Some people criticize big emergency funds, saying money just sits there instead of working. But honestly? The peace of mind I felt once I hit my target was priceless.
At first, I planned for three months, but after seeing how long job searches can take in Switzerland, I increased it to six. Now I sleep much better! 😴
With that amount saved, I can:
🏠 Change apartments without stress about the deposit
💼 Start a small business
🔒 Feel secure in the job market
📊 My 3 Rules for the Freedom Budget
1. Every franc must work
The budget became not just an accountant, but head of the development department! Understanding my expenses allows me to spend my monthly budget down to the franc!
2. Pay yourself first
This rule changed everything in my approach to personal finance in Switzerland.
3. It’s okay to change your mind
This is where mental accounting comes in. If I overspend in one category, I don’t beat myself up. As long as the monthly total balances out, it’s fine!
A budget should give you control, not become a form of torture! 🎯
More about my hierarchy you can read in the post below!
Money Essence
🚀 What’s Next? Time to Invest!
Thanks to this system, in just six months I completed my 24,000 CHF emergency fund and started a new chapter - investing in Switzerland! 📈
I won’t go into detail just yet, but stay tuned - more is coming in the next posts 😉
Ciao, Bella! 💕 (yes, that’s how I say goodbye to friends 👋)
Want to learn more about budgeting in Switzerland? Leave a comment or follow along on my financial journey! 💸