When it comes to personal finance, one of the most common questions people ask is: How much money should I save?
The answer is not as simple as providing a fixed percentage or amount. Instead, successful saving requires a balanced perspective that considers your current financial situation and future goals.
What does freedom mean to you?
For some, it’s having the ability to work full-time on their passion projects without financial worries.
For others, it may be earning enough to travel the world, build a family, buy a house, or treat their loved ones to a month-long vacation.
This desire to have more freedom in life drives us to earn more money. Because after all, if you have more money you will have more freedom, right? Right?
Well… Not always.
My friends, family, and readers often ask whether they should invest money through a third party.
They talk about “agencies” or “investing companies” who advertise online and on social media with the message:
“Just give us your money, and we will give you X% returns every month.”
Here’s a rule of thumb: If third parties make that type of pitch, RUN as fast as you can.
I’m 36 now. Ten years ago, I started to make a little bit of money – and when I say a little bit, I really mean small sums.
I launched a business at the age of 24 after finishing grad school. For the first two years, I hardly made any money. So I moved back in with my parents and invested all my profits back into the business.
After about two years, I was finally able to pay myself. At first, I paid myself around €1400 a month, just enough to rent an apartment and live modestly. Gradually, my income increased, and now I have a seven-figure net worth.