This site is meant to serve as a guide to how in different ways can get more money. What you are going to use the extra money you save, win or invest you is something we leave to you to decide.
However, we can make a stroke because you make sure to get yourself so-called freedom capital. This type of capital can also be called pippi money or even “fuck off money”. The idea, however, is the same regardless of which term you choose; namely that capital should act as a buffer to take when you need to make a big change in life.
Freedom capital gives power and confidence
You may now wonder when and how a freedom capital might be needed. In short, the freedom capital can be used when you need to get out of a situation that you do not enjoy for various reasons. There are many examples to mention.
One example is a job. Perhaps you do not like your job because of a poor manager or that the tasks are not sufficiently challenging. In such a case, you can use your freedom capital to cope with the time between your resignation until you get a new job.
Another example is break-up and relocation from a partner with whom you live together. The freedom money can then be used for the costs that can be linked to the move.
Without freedom capital, it can be harder, if not impossible, for you to get out of situations that do not really benefit you or that can even be destructive. Without this capital you will be powerless. With a saved amount of money to take, you instead get the power to make a change.
So much you need
Of course, how much you need in freedom capital is individual. Some people may think that a couple of monthly salaries are enough. Others do not feel any greater degree of security if the capital does not amount to an annual salary.
In order to cope with the reduced income that can result from the resignation, a couple, three monthly salaries can be sufficient in freedom capital. For a break-up from a partner, the need may be both larger and smaller. The main thing is that the freedom capital gives you a greater sense of security and a greater sense of personal power. Having freedom capital is just as important economically as mentally.
Here’s how to save for your freedom capital
The basic idea of this type of saving is that you should be able to use it quickly and easily. In addition, the value of it should be relatively stable. This means that investing in high-risk stocks may not be the best choice. It might be an idea to open a savings account for this purpose. The easiest and smartest way to save is probably by making an automatic auto-deposit as soon as the monthly salary comes in.
If you want to invest in funds or shares, it might be wise not to invest every penny. Perhaps you should not start investing until you have saved up an amount that gives you that sense of power and confidence that the freedom capital is supposed to create.