- To do this you need a separate bank account for your savings. I have chosen TD bank where I can withdraw the money at any time if I need, but you can use whatever bank you want. I’m not an expert and I accept feedback. Anyway, the point is that you should have a separate bank account for your savings, otherwise you’ll be tempted to spend them and it’ll be difficult to keep track.
- When your bank account is set up properly, put your first investment in it. It can be as little as $10-$20, or whatever you can afford. Those will be the first money toward your financial independence.
- After you made your first investment, decide in advance a day when each month you’ll put some money into your saving account. You can start with $10 a month if you want, but make sure that you put something each month. My advice is to choose a day just after you receive your paycheck in order for you to make less excuse.
- Month after month, as you begin to save more and more money and you feel comfortable doing it, increase the amount that you put into your savings account each month. For example, if you were previously saving $10 a month, you can increase to $20 or $30.
- When you receive extra money like CRA or bonus or you feel comfortable doing it, put what you can into your savings account. By the law of accumulation, even if you decide to save $100 a month, after one year you’ll have more like $2,000 rather than just $1,200.
- Finally, figure out how much money you need to live comfortable one month, including all the expenses that you currently have, and make a goal of saving the equivalent of six months worth of your expenses as soon as possible. It’ll probably take you one year or more to do this, but when that time will come you’ll be glad you started today.
- If you follow this system, I’ll guarantee that you’ll feel better, have less stress, and eventually reach financial independence in the long term.
- If for some reason during one month you have lots of expenses and you feel like you would not be able to save your usual amount of money, cut it in half, but save something anyway, even if it’s just $10. The process of doing it is always more important than the amount that you decide to save.
