Getting Started on the Road to Freedom: Putting Money Away

Updated on April 21, 2020
profile image

I'm just a regular guy, who works a regular job, but has a passion for helping others get started on the road to financial freedom.

Baby Steps

Everyone wants financial freedom, but very few of us understand how to get there. I believe our educational system here does little to nothing about teaching us how to manage finances, and unless your parents knew how, you are pretty much on your own!

Wide open spaces
Wide open spaces | Source

My Boss Did Me a Favor

I had a boss over twenty years ago who did me a huge favor. She took me into a huge conference room and told me to sit down. In my head, I was asking myself what I did wrong to get in trouble, and was I about to get fired from the job I had worked so hard to get? She told me in no uncertain terms: I had to put 15% of my paycheck into our company 401K, and 15% into the stock purchase plan. She did not give me an option.

Okay, so 30% is drastic. Probably unobtainable for most. But, I was young, newly married, and just getting started. So, I did it. We were able to afford to do it, because my job was new to us, and we had been living off my wife's income. In case you are wondering.

I reached out to my old boss a few years ago and asked if she remembered that conversation. She said "yes, why?" I responded, "Thank you!" Because I was not really given a choice (I guess I could have said no), it set me on the path to becoming financially free one day. I am still on this journey, but getting closer every day.

So, you are probably asking yourself when I will shut up with my story, and start to help you understand how to get started? Well, here goes...

Getting Rich Takes Time

For starters, you do not get rich quickly. It takes time and patience. If you are young, your biggest asset is time. Use it to your advantage! Set up an account at a bank that you are not going to easily access the funds at that bank, and then set up a direct deposit(if you have that option), and start putting $25 or $50 a month(anything) into what I call your "Verboten" account. Verboten is German for "Forbidden". To me, this means you cannot touch this account. It is the base of your financial freedom and must be treated as a sacred account upon which you build your future.

Your first goal is to get three to six months of living expenses into this account. This will potentially allow you to afford a sickness or job loss, without having to go into debt.

Setting up this account only takes a few minutes, and you should be able to link your main checking account to your new account, so you can make transfers if you do not have direct deposit. The rate of inflation is currently 1.9%, so you might want to find an account that pays 1.9% or greater (there are a few good ones, but do your research). The reason being is that you are actually losing buying power when you leave your money in this Verboten account. The time value of money states that one dollar today is worth more than one dollar tomorrow. If you are putting this money into an account that at least matches the rate of inflation with the interest it pays you, you are at least keeping that dollar value worth a dollar.

Now you are saying, how do I come up with that $25 a month? Analyze your spending. A classic example of how to save a few dollars a month is to make your own coffee at home. If you are stopping to get coffee every day, five days a week, at even $2 a cup, you are spending $40 a month that you could be saving. Another example of how to save is to cook at home if you do not already. We might go out to eat once or twice a month, but all of our other meals are cooked at home. We spend around $250/week to feed a family of five. If we went out to dinner each night, we would be spending around $1400 a month, and that would easily get out of control.

Now, go set up that account, and start saving!

© 2019 TheRoadToFreedom


    0 of 8192 characters used
    Post Comment
    • bhattuc profile image

      Umesh Chandra Bhatt 

      16 months ago from Kharghar, Navi Mumbai, India

      Useful tips.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)