My friend Michael wanted to resign last year because his boss was a bastard. Many of us have been through the same thing without being able to do it, but Michael has been successful as soon as he’s gone crazy.
He saved enough money to shove his boss, which should be the first goal of any frugal. But how much is needed to be able to embrace this sweet deliverance? How hard is it to tighten one’s belt before one’s biggest fantasy comes true – leaving one’s office, making a gigantic finger of honor to one’s colleagues without ever coming back?
“This amount can vary a lot, but if you had to make an empirical rule, it would be saving the equivalent of six months of spending,” said Andrew Schrage, co-founder of Money Crashers.com. “It can help set up automatic transfers to another account. ”
The idea of saving so much terrifies me because I’ve only put $ 115 aside since I installed Mint a few weeks ago. I admit that it’s still better than my previous record (which was to be around two dollars), but the sum of $ 20,000 still seems a long way off.
Considering how I save my money since I use Mint, I would struggle to save even $ 6,600 (my rent for six months, no more). It may sound daunting, but keep in mind that the more you save, the more interest you will earn.
For example, my app gives me five cents for every hundred dollars I keep on my account over three months. If I can reach $ 6,600, I will earn $ 30 a week; if I get to 20,000, I’ll make $ 10 more a week. ”
A person has been very successful in transforming her savings into what she calls “passive income.” Until she was 25, she babysits and managed to save money with her salary at 20 euros an hour – saving her about $ 1,000 a month. Now, his savings are his biggest source of income.
But not everyone wants to give up their Friday and Saturday nights to babysit. Hooper offered me another option to get money fast and pay off debts: “I think it’s good to sell everything you do not need anymore. It can give you plenty of money, much faster than if you stop Starbucks coffee. ”
That said, this alternative seems to me of a quasi-monastic austerity. I like my objects. It was easy to install apps, as I still do not have to check my bank account. I do not have much to do. In comparison, Hooper’s suggestions seem stressful and inclined to change my quality of life.
But the latter insisted on advising me to think about what was waiting for me: after paying off my debts, I could start building a safety net and start investing money to earn even more.
“It’s very difficult for people to stick to their goals. But frankly, you would eat eggs every day if you knew you could have $ 10 million in 20 years. “