Yesterday we saw that saving is the first step towards financial independence. You have to save money, quite a considerable amount of it, in order to be someday financially independent.
And just like a diet, you need to start small. You can’t start by saying ”I will save $2,500 every month” if you make $3,000. But every little counts, so start now, with a reasonable goal. Start by paying off your debt, if you have some.
Then open that savings account and throw anything you can at it. Some credit cards will allow you to round up your purchase to deposit in your savings account. So if you spend $2.19, you will be charged $3.00 and $0.81 will go into your savings. You won’t miss it, and it can really add up.
Put any extra income into your savings. Have your decided to rent out your extra bedroom? Savings. Received a bonus or a raise? Savings.
You will notice that I’m not talking about retirement accounts like 401(k)s and the like in here. For two reasons, the first being that I do not live or work in the US so I’m not familiar with that setting, and the second that I plan on being financially independent way before I turn 60, so this is money I wouldn’t be able to use in the near future.
By starting small, and being consistent, the numbers will add up. Try to automate part of those savings, so that they are transferred first thing when you get paid. You won’t miss the money and won’t have to think about it.
No matter how small you start, if you keep going, you are on the good path to financial independence.