About a week ago I initiated what I’m calling the Countdown to Freedom, where I’m starting the process of saving and then investing to reach financial freedom. This is similar to blogs where people are paying down their debt, but in this case I’m going the other way, starting with some contributions to a money market account and some small investments and going towards financial freedom. That is the state where your investment income is equals your work income, allowing you to live without working anymore if you so choose. In actuality I’ve already made this journey, but thought people might like to see how it is done to inspire them to make the same journey. You’re invited (and encouraged) to do same and let everyone know how you’re doing.
I’m planning to put at least $200 per month into a money market fund. This is money I’ve budgeted after already making payments into 401K IRA. On good months, like July which has an extra paycheck, I may put more. If I get a raise I my increase the amount. That is how you chip away at the stone – little by little.
I made the first payment last week. I put in $300 for the month, which is now parked comfortably in a money market account, earning something like 0.3% interest. Note that these first several posts will be like watching grass grow. Those getting out of debt start with large numbers, which makes it a bit more exciting. When you go the other way, it starts really boring, with small amounts being put into money market accounts that pay essentially nothing, so all of the growth you see is due to your own payments into the fund. (But hey, that means I get to increase my balance by 100% next month – woo hoo!) I’m probably about 8 months to a year away from making the first investment. But stay with me – it starts slow but then grows like you won’t believe near the end.
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Disclaimer: This blog is not meant to give financial planning or tax advice. It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.