If you have ever been unemployed, then you know how difficult it is to survive without a job. But what if you want to survive full-time without ever having to punch the clock? What if you would like to meet your needs without having a boss, without having responsibilities or having to endure the daily grind like everyone else?

The bad news is that this can be extremely challenging for anyone, but it certainly is doable with the right preparation. Perhaps you want to spend more time traveling the world, exploring a freer lifestyle, and richer social connections. Perhaps you want to bow out of the capitalist economic system. Or maybe finding a job is just not within the realm of possibilities during the COVID-19 epidemic.

Your reason for living without a regular job will dictate how you can live, but there are surprising and uncommon lifestyles that may be just what you’re looking for.

• Can I Live Without a Job?
• How to Live Without A Job
• How do I Start a New Life With no Money?
• Can you Live Without a Salary?
• What State Will Pay You $10000 to Move There?
• What Places Will Pay You to Live There?
• How to Make a Living Without Working a 9 to 5 Job
• How can I be Financially Independent Without a Job?
• How Much Money Can You Survive Without Working?

How to Live Without A Job

Diversifying your income

When exploring how to live outside of the regular work grind, one of the first suggestions you will come across is to diversify your income. If those words make no sense, have no fear. Diversifying your income just means branching outside of earned income. It is the most conducive way to quit your job and still afford a mainstream lifestyle.

Read Also: How Can I Earn Money Without Working?

Income streams can come from many sources, and if you’re thinking of quitting your job but still requiring money – short of receiving a large inheritance – you will need an income stream. Diversification can be as simple as setting aside a room in your house to rent, or perhaps an entire floor.

This can bring in extra cash flow to your budget and allow you to breathe a little easier. Other ways to diversify include low-risk investing or creating small side hustles that you enjoy.

Get a side hustle

If your end goal is to have a zero-work lifestyle, think big (and usually more risky) investments or get back to work. If your goal is to reduce work hours, then your best option may be a part-time side hustle. Try to find a side hustle that minimizes effort – or even better, is considered ‘passive income’.

Passive income is revenue coming in that requires no work from you. This could include allowing advertisements on your blog or website or writing a book that continues to pay royalties after the initial hard work.

Keep the purse strings tight.

Tracking and controlling your spending will be helpful to you. There are many ways to keep track of your expenses that don’t need complicated spreadsheets. Try using an app like Wally to manage your finances.

As you pay attention to your spending, consider cutting costs where you can. Pay attention to costs like entertainment and eating out as those bills rack up quickly. Consider water and heating costs, grocery costs, etc. You may even live rent-free by living out of your vehicle.

Learn to Survive.

For those of you searching for a way to live ‘moneyless’, consider the life of Mark Boyle – The Moneyless Man. However, one thing to note for those wanting to explore this side of living, it requires work. Rather than working on investing, side jobs and passive income, you will focus on foraging or finding food and other needed resources. Dumpster diving is a legitimate way that people find food in the city, just look out for spoiled food.

How do I Start a New Life With no Money?

Starting over completely fresh without any money isn’t an easy endeavor by any means, but it isn’t necessarily an impossible one either.  It takes is some grit, hard work, and a willingness to really examine what specific issues brought you to this point.  

Before you attempt to rush headfirst into a new life, you should first take a moment to stop and examine what you can do to really make this second work.

here are some things you should do if you’re moving with no money.

1. Do your research: Moving to another state without money isn’t a decision that should be made on the fly. You need to take a look at both the cost of living in the city or town you’re intending to move to. Also, look at your prospects for securing affordable housing and a job. Use our free online cost of living calculator to compare cities based on finances and other quality-of-life factors that will matter when you’re moving on the cheap.
2. Assess your finances: It doesn’t matter whether you’re moving with $100 or $1,000. You need to know what you’re working with so that you can plan accordingly. Plan a budget for your move that accounts for packing costs and travel costs (including gas and food on the road). You can start by using Moving.com’s moving cost calculator to get an estimate for your move and the packing and moving box calculator to get an idea of what packing supplies you’ll need
3. Save for emergencies: Even if you are living on a tight budget it’s important to save what you can in case of an unexpected cost around the time you’re moving. What if there’s a medical issue or your car broke down right before moving day? Try to plan for that by setting aside some money so you can move without delays and going into debt.
4. Consider all affordable housing alternatives: If you already have a place to stay, great. If you’re going to need to secure one post-move, determine exactly how much you have to spend. You can usually find room rentals on the cheap through sites like Airbnb or VRBO, which will allow you to keep costs at a minimum while you get yourself settled. Consider couch surfing, a sublet or a home-sharing arrangement. You can try Airbnb’s monthly rentals section to find temporary housing. With home-sharing, you will likely be paired with an elderly homeowner who needs a little extra help in exchange for low rent. Living in a house or living in an apartment aren’t your only options. Manufactured-home living is seeing a bit of a resurgence in popularity now as young Americans are ditching the McMansion for a more minimalistic living. As of last year’s data reported by the Manufacturing Housing Institute, 22 million Americans lived in manufactured homes. Manufactured homes are more affordable than standard, site-built homes. And, if you’re heading to the South or the Midwest, in particular, you’ll find an abundance of them. Another option, if you don’t mind sharing the space, is to get a roommate. Or 12 of them. With fewer affordable options in many major U.S. cities, some renters are looking for alternative housing solutions. The median price for a one-bedroom apartment in New York is $3,420 and $2,900 in San Francisco. Few can afford this. So if you’re moving to a city with a high cost of living, why not consider a pod share? Those are co-living spaces where individuals rent a bed (usually a bunk bed) in a shared room, with access to other community spaces like a bathroom and kitchen. If it’s a good fit, not only you’ll have an opportunity to live in a high-priced major city but also to enjoy a uniquely communal environment.
5. Sell what you can: You don’t need to sell all of your belongings if you’re moving to another state with no money, but you should absolutely sell off the things that you no longer want or need. In addition to helping you get some extra cash, selling these items will also lighten your packing load so that you don’t have to spend as much on supplies. This will be especially important if you just have a car to get your items from point A to point B. If you have the time and inclination, you could also host a pre-move garage sale either on your own or with your neighbors. Anything that doesn’t sell, you can donate. Places like Salvation Army and Dress for Success will happily take your gently used clothing. And if you have unwanted items, a junk removal service can haul them away for you, even the heavy stuff like a mattress or an air conditioner.
6. But hold on to the essentials: There are certain things that you’re definitely going to need as you get your footing. For example, don’t sell all of your interview-worthy clothes, or pawn off your laptop just because it might mean a windfall for your bank account. Both of those things will be crucial if you have to hunt for a job. Have a resume updated and ready to go, and print out some copies too so that you have them readily available. Other things you’ll need to be sure to have along with you include important documents like your social security card and I.D. card, basic toiletries and a few changes of clothes (as well as a plan for getting them laundered); any cards, checks, documents or other necessities related to your banking; medications, if applicable; and anything else that you simply can’t live without.
7. Figure out a way to make income right away: The best way to move without money is to have a job ready and waiting for you when you get there. But don’t feel like it has to be a 9-5 or nothing. The gig economy offers you quite a few options if you need to make some fast cash and can help tide you over until you find something more financially sustainable. The gig economy concept isn’t new, but during the pandemic, it has morphed into a trillion-dollar industry with millions of people involved.Some examples of the jobs you could do include:
   • Rideshare driver
   • On-call delivery driver
   • Babysitter
   • Nanny
   • Admin temp
   • TaskRabbit worker
   • Seasonal retail employee
   • Online marketplace seller If you have a background or talent in something that lends itself to remote work — such as graphic design or writing — those could be good options too. You can become a freelancer, a consultant or an independent contractor in many industries these days. While you don’t need to have your entire career future set in place before your move, having some sort of plan for bringing in money while you iron out the rest of the details will take a lot of weight off of your shoulders and will give you some flexibility as you move forward.
8. Be realistic and set your expectations: Even the best-case scenarios might leave you struggling for a little bit right after your move. Have a job lined up? You’re still going to need to account for the weeks (or longer) it could take to get onboarded and get that first paycheck. Staying with a friend? Be sure you’re both on the same page about how long your stay can last and what’s expected of you as a guest in terms of helping out with bills, food or other necessities. All of this isn’t to say that you should go into your move with a doom-and-gloom attitude, but it’s incredibly important that you get an accurate feel for what you’re facing so that you don’t make some mistakes early on that could come back to bite you. Moving to another state with no money means that you have to make any money you do bring with you last as long as it can. And for that, you’ll have to know what you’re in for. And what if you have no immediate opportunities in terms of jobs or housing prospects? You’ll need to be a realist there, too. Is it possible for you to hold off on the move until you have some prospects? If not, how do you intend to make an income? If your best option is to get in on the gig economy, start figuring out your steps forward as soon as you possibly can.
9. Set up a backup plan: Speaking of being realistic, consider what your worst-case scenario might be and then plan for it. If you do find yourself without housing, what solutions does the town or city you are moving to offer? Are there organizations that you can turn to for meals and groceries while you job hunt? What about career service agencies that will provide you with free advice and/or assistance? Don’t be ashamed of seeking out and asking for help — it’s what these organizations are there for.
10. Live within your means and save money: There’s no doubt that even DIY moving can get expensive, but even with high-cost activities, there are areas where you can keep costs down. Gather free packing boxes instead of purchasing new ones; camp out in your car instead of splurging on a hotel during your drive; and stock up on non-perishables so you have food without having to resort to the drive-thru.
11. Adjust your budget after you move: Be cognizant of living within your means after the move. Don’t be tempted to spend your first paycheck on new household items or going out for entertainment. Until you settle and start earning enough money, you might have to be a minimalist consumer. If you have friends in your new city and they want to welcome you to town by going out to a nice dinner, suggest you grab a slice of pizza and walk around your new neighborhood instead. If you’ve taken the time to budget, you’ll know what you’re working with and how much you can spare. Stay within that limit so that you can stretch your current finances as far as they can possibly go. Ideally, 50 percent of your monthly payment should cover all necessary expenses, 30 percent of your monthly payment should go toward things you want, and 20 percent should be used for debt repayment and long-term savings.
12. Ask for help and recommendations: Sometimes this is even trickier for people to conceive of doing than the idea of moving with no money itself. Often though, there are resources out there — you just have to be willing to make the first move and ask. This could mean asking some friends and/or family members for a loan or asking for an advance on a job payment. It doesn’t hurt to make the request. Even if you don’t get everything that you need you may be able to make a dent in the right direction. Other things that are worth asking around for are referrals for cheap apartments, free furniture requests and moving help.
13. Get housing assistance: You might qualify for low-income moving assistance in some cases. One of the first places to look when you’re in need of help with moving expenses is local and national charities and grant organizations. There are quite a few that offer moving cost support and that may be able to assist you in your relocation, like Catholic Charities and the Housing Industry Foundation’s (HIF) Emergency Housing Fund. There are also local, state and federal grant programs that offer help with moving costs, and there are even some moving companies that offer free public assistance/HRA moving programs for those who qualify.

Can you Live Without a Salary?

While it may sound like a preposterous idea to most people, the truth is you really can manage to live without any salary (at least for a little while). As long as you have food and shelter, which are the most basic necessities, you can live without earning a cent while you figure out what you’re going to do.

And though many people wouldn’t choose to make the sacrifices necessary to live this way, it is possible with a little help from your family, friends, and maybe the government.

Step 1

Save up enough money to survive in case you need to live without an income for a while. Sock away at least three to six months of living expenses for an emergency. This way you can continue to pay your bills and live your current lifestyle until you start receiving income again.

Step 2

Eliminate your housing payment. Move in with friends or relatives, ask your church to help you find a place to live, or skip around to different shelters.

Step 3

Secure a steady food source. Food stamps are available to those who meet certain eligibility criteria, or friends and relatives may be able to provide you with food. Go to soup kitchens, church gatherings and food banks to get hot meals and possibly leftovers to take with you.

Step 4

Get seasonal clothes and accessories, such as gloves and scarves, if your area’s climate requires them. Charity drives and churches often help clothe people with limited or no income. Ask your friends and relatives for hand-me-downs.

Step 5

Secure some sort of transportation. Buy a bicycle from a second-hand store, ask a friend to take you to work or borrow a car.

What State Will Pay You $10000 to Move There?

A quick internet search will show you that, yes, some states are enticing remote workers with financial incentives to make the move to their neck of the woods. Are these programs legitimate? You’ll need to do your due diligence to make sure you’re looking at the real deal and not a scam.

Oklahoma

First up is Oklahoma — specifically the city of Tulsa. The Tulsa Remote plan was initially launched in 2018 and offers $10,000 grants to eligible remote workers or entrepreneurs. If you’re chosen for the grant, you’ll also receive a one-year membership to a local coworking space and help with finding your next home. Tulsa Remote also offers community-building events and meetups to help you engage with the community.

To qualify for the initiative, you have to be at least 18 years old, working remote full-time (self-employment works, too), and you have to be able to relocate within 12 months of acceptance.

Alabama

The Shoals in Northwest Alabama. The Remote Shoals program pays you up to $10,000 to move to and work from The Shoals. You’ll receive 25% of the total amount upfront to cover moving costs, another 25% after your first six months, and then the remaining 50% after your first year living there.

One of the most appealing things about The Shoals? Its proximity. You’re only a two-hour drive away from Birmingham, Nashville, and Memphis. And if you want to fly, you can also board Boutique Airlines for a one-hour flight to Atlanta.

To qualify, you must be at least 18 years old, make $52,000 or more a year, and you must be able to relocate within six months of acceptance. You can be self-employed, but your place of work has to be located outside Colbert and Lauderdale counties.

Arkansas

If Ozark has you interested in the area (we promise it’s much more tame in real life than in the show), see what Northwest Arkansas has to offer and take advantage of the Life Works Here initiative. You can qualify for $10,000 (paid in cash or crypto) to help with settling in, as well as a bike to help you explore over 300 miles of mountain trails, 162 miles of paved trails, and the 37-mile Razorback Regional Greenway.

Biking isn’t your thing? No worries! You can opt for annual membership to art or cultural institution instead. The program is mainly meant for STEAM (that is, science, technology, engineering, arts, and mathematics) professionals and entrepreneurs, but any kind of talent can qualify.

And speaking of qualifying, you have to be at least 24 years old, have two years of work experience, have a full-time job (including self-employment), currently reside outside of Arkansas, and have the ability to relocate to the state within six months of acceptance, and be a U.S. citizen (or prove that you can legally work in the U.S.).

West Virginia

Ascend West Virginia is the program responsible for providing $12,000 payments and access to free outdoor recreation. If you qualify, $10,000 will be paid out in installments over your first year of living there. If you stay a second year, you’ll have that extra $2,000 in your pocket.

And on top of that, you’ll have access to free gear rentals (think zip lines, rafting, golfing, climbing, and even off-road excursions) for two years. Basically, whether you feel like paddleboarding or biking down a mountain trail, you’ll be able to access it.

To qualify, you must be 18 years old with a full-time job or self-employment and the ability to work from home through a company outside the state. You’ll also have to relocate to your new state within six months of acceptance.

Alaska

Alaska’s incentive program dates back to 1976, and it’s called the Permanent Fund Dividend. How much do you get paid to live in Alaska, though? In the past, citizens have qualified for up to $1,600 for simply living in Alaska, and in 2021 the amount was $1,114. All you have to do to receive this grant is to remain in the state for an entire dividend year! Added bonus? Alaska has no state tax.

Kansas

Finally, choosing Topeka, Kansas, as your new home city and state could mean $15,000 in your pocket. The fund is specifically for Shawnee county, but unlike other incentive programs, this one can work for both remote and on-site jobs.

For on-site jobs, your employer has to be willing to participate in a relocation incentive, you have to move to Topeka, and you have to purchase or rent a home within one year of your hire or move. But with this route? You can receive up to $10,000 for rent or up to $15,000 for purchasing a home. 

If you’re a remote employee, your employer must be located outside of Shawnee county, and it’s limited to one per household. There’s a minimum three-month waiting period for the incentive, but after that, you’re eligible for $5,000 for renting a home, or up to $10,000 for purchasing a home.

What Places Will Pay You to Live There?

Several cities are willing to help out by paying you to move there. While some offer money for a down payment, others provide tax breaks, grants, or college tuition reimbursement. A few even offer additional incentives like coworking spaces and beach passes.

1. Vermont, United States

Vermont is a mountainous state in the United States of America. It produces cheddar cheese and the famous Ben & Jerrys ice cream. The beauty of nature makes Vermont an ideal destination for tourism but, unfortunately, only around 620,000 people live in the state.

This is why the Remote Worker Grant program is offering applicants $10,000 (Approx. Rs 7.4 lakh) for two years. In May of 2018, Vermont Governor Phil Scott signed a bill funding a state initiative that offers $10,000 to people willing to move to Vermont and work remotely for an out-of-state employer.

2. Alaska, United States

If you love snow, winter, and a leisurely pace of life, and you want to move to a place where you can get clean and fresh air then the state of Alaska will pay for you to live there permanently.

As the population of the region speedily declines the government pays the residents of Alaska an investment income from the natural resources that are mined there. It is approximately $2,072 (Approx. Rs 1.5 lakh) per person per year with the condition that you have to live there for at least one year and not leave the state for a certain number of days.

3. Albinen, Switzerland

Albinen, a small Swiss town famous for different types of cheese and stunning locales, has around 240 inhabitants. If you are under 45 the town will pay you around 25,000 Swiss francs (Approx. Rs 20 lakh) for singles over the age 45, 50,000 (Approx. Rs 40 lakh) swiss franc for couple and an additional 10,000 (Appr0x. Rs 8 lakh) swiss franc per child to live there but, there are certain conditions like you will have to live there for at least 10 years, buy or build a house, it means you will get 60,000 swiss francs (Approx. Rs 48 lakh) if you have one kid and 70,000 swiss francs (Approx. Rs 56 lakh) if you have two.

And home cannot be your second home and you should be a resident of Switzerland, or you must be married to a Swiss resident.

4. Ponga, Asturias, Spain

This delightful little village and oldest in the country has a population of around 1,000. To attract young residents and strengthen the economy, the local authorities offer 3000 euros (Approx. Rs 1.5 lakh) to each young couple who move there. And every child born in the town will also get paid 3,000 euros, which means you will get paid 6,000 euros (Approx. Rs. 5 lakh). This is a great opportunity to live in an incredibly beautiful place with clean ecology.

5. Ireland, Dublin

The Emerald Isle is not only good for drinking Guinness, but also for starting your own business. The Enterprise Ireland Incentive Program was created to attract entrepreneurs around the world. If you think your startup can make a lot of money and has potential, apply. You can move there and will get thousands of euros as funding if your application gets approved.

6. Candela, Italy

A little town in the center of Italy, Candela with around 2,700 inhabitants is bringing the population back up to 8,000 and offering 800 euros (Approx. Rs 68,000) for singles, 1,200 euros (Approx. Rs 1 lakh) for couples, 1,500 to 1,800 euros (Approx. Rs 1.5 lakh) for three-member families, and over 2,000 euros (Approx. 1.7 lakh) for families of four to five people including tax credits for people who relocate.

7. Chile, Santiago

In 2010, the Chilean capital, Santiago launched the Star-Up program, offering a start-up with an interesting idea to three years of work with a subsidy of $50,000 (Approx. Rs 37 lakh). In addition, the program provides one-year work visas, workspace and a network of contacts.

8. Mauritius

If you have good knowledge in technology, business models, finance, innovations, and other upcoming fields, you can start your business without investment then the tropical island Mauritius will pay you 20,000 Mauritian Rupees (Approx. Rs 34,000) to start. To qualify, you have to present your interesting idea for a startup business, one with a potentially global reach to a committee.

9. Niagara Falls

One of the best tourist destinations, Niagara Falls, a small New York town, has a population of around 50,000 people. The Downtown Housing Incentive Program offers young students around $7,000 (Approx Rs 5.2 lakh) if they live and work in this region for 2 years. The city then reimburses the applicant for their annual student loan payment of up to $3,492 a year and up to $6,984 during the two-year term of the agreement.

10. New Haven City

Home to prestigious Yale University, a quite a decent city, New Haven, Connecticut, U.S. with all the necessary infrastructure and cultural objects offering immigrants a $10,000 (Approx. Rs 7.4 lakh) interest-free loan to buy a house and the loan is entirely forgivable if you live there for 5 years or $30,000 (Approx. Rs 22 lakh) for energy-saving home upgrades which is also forgivable, as well as reimburse a loan for education in the amount of up to $40,000 (Approx. Rs 29 lakh) as well as free tuition to any in-state college for students who graduate from New Haven public schools.

How to Make a Living Without Working a 9 to 5 Job

Making a living from your daily job may quickly fetch you money, but it is only in the short term, and it doesn’t grant you financial security. Your daily demands more of your time, leaving you with few hours to spend with your family and enjoy.

But thanks to technological advancement, there are several proven ways to make a living without working a 9 to 5 job.

1. Become a Writer

If you enjoy writing and working online, you can offer your writing services for a fee. Writing takes different forms, so you need to identify where your strength lies. Can you write content, resume, e-book, long-form content, copywriting or technical writing? The only thing you need is your laptop and your writing skills together with SEO basics.

There’s a growing interest in content marketing, and brands are looking for great content writers like you. You can find many writing jobs on popular job boards, including Upwork, Fiverr, and Freelancer. Another way is to join a content writing agency to get a steady job flowing to you. The best thing is to start a blog and start pitching to potential clients for projects.

2. Start Translation Work

Another weird but legal way to make money without having a day job is taking up translation work. But you will need to fluently speak or write at least two languages to become a successful translator to earn a decent income while working from home.

If you want to become a credible translator, you need to prove your ability to translate. If you have a degree or are well experienced in translation work, you need to add samples to have a strong portfolio. You may not use translation apps or tools. So you need to be fluent in the languages you would be taking.

3. Become a Graphic Designer

Obviously, becoming a graphic designer is ideal for making money without having to work all day long if you are creative with your design skills. For some businesses, small, medium, or large enterprises, an easier way to get their business out there is hiring a talented graphic designer to design products or services they offer to customers.

Individuals and businesses are looking for your services on freelance platforms to design beautiful and creative logos to represent their businesses. Look around you and on the internet. You will find many designs for marketing and promotion. And this is an enormous opportunity to establish your own business to make a living without working a 9 to 5 job or without working for someone.

You can take online courses on e-learning platforms like Udemy to master design tools such as Adobe Illustrator and CorelDRAW. You can freely use Canva for your design projects.

4. Become a Website Developer

One of the most sought-after online services is website development and the good news is that you can do this on your own schedule. But first, you need to learn and specialize in web development to build your brand of it to stand out.

Each day, there are a lot of startups trying to build their businesses online and will require your skills to solve their problems. So if you are now starting out, they should be your target.

Here are some useful learning platforms to help you get started on your learning journey.

• Coursera
• Udemy
• CodeAcademy
• Bitdegree

5. Manage Social Media Accounts

If you are tired of working for your terrible boss or if you are looking for jobs that require minimum working hours a day, try social media management work. If you are already a social media person, this should be easier for you to do.

As a social media manager, your responsibilities may include planning and executing marketing plans for community interactions and higher brand recognition. Why not turn your scrolling and posting time into making money on social media to make a living without working 9-to-5 a job?

Becoming a social media manager does not require large followers, but social media management skills. Keep up with the trends, adequate knowledge of the best social media platforms, data for better campaign results, etc.

You can either apply to businesses as a social media manager or offer social media services in popular marketplaces such as Upwork. Asking individuals is another way to land yourself a social media manager role.

How can I be Financially Independent Without a Job?

Becoming financially independent without having a job is not easy, but it is certainly possible. There are some proven methods in which you can achieve financial independence without working a typical 9-5 job.

It’s important to note that even though you might not need a job, you’ll still have to work hard. If it was easy work, everyone with or without a job would be financially independent, which as we know, is not the case.

1. Set Life Goals

What is financial freedom to you? Everyone has a general desire for it, but that’s too vague a goal. You need to get specific about amounts and deadlines. The more specific your goals, the higher the likelihood of achieving them.

Write down these three objectives: 1) what your lifestyle requires; 2) how much you should have in your bank account to make that possible; and 3) what age is the deadline to save that amount.

Next, count backward from your deadline age to your current age and establish financial mileposts at regular intervals between the two dates. Write all amounts and deadlines down carefully and put the goal sheet at the front of your financial binder.

2. Make a Monthly Budget

Making a monthly household budget—and sticking to it—is the best way to guarantee that all bills are paid and savings are on track. It’s also a regular routine that reinforces your goals and bolsters your resolve against the temptation to splurge.

3. Pay Off Credit Cards in Full

Credit cards and other high-interest consumer loans are toxic to wealth-building. Make it a point to pay off the full balance each month. Student loans, mortgages, and similar loans typically have much lower interest rates; paying them off is not an emergency. However, paying these lower-interest loans on time is still important—and on-time payments will build a good credit rating.

4. Create Automatic Savings

Pay yourself first. Enroll in your employer’s retirement plan and make full use of any matching contribution benefit, which is essentially free money. It’s also wise to have an automatic withdrawal into an emergency fund, which can be tapped for unexpected expenses, as well as an automatic contribution to a brokerage account or something similar.

Ideally, the money for the emergency fund and the retirement fund should be pulled out of your account the same day you receive your paycheck, so it never even touches your hands.

Read Also: Which Online Job is Best for Beginners?

Keep in mind that the recommended amount to save in an emergency fund depends on your individual circumstances. Also, tax-advantaged retirement accounts come with rules that make it difficult to get your hands on your cash should you suddenly need it, so that account should not be your only emergency fund.

5. Start Investing Now

Bad stock markets—known as bear markets—can make people question the wisdom of investing, but historically there has been no better way to grow your money. The magic of compound interest alone will grow your money exponentially, but you do need a lot of time to achieve meaningful growth.

However, remember that—for everyone except professional investors—it would be a mistake to attempt the kind of stock picking made famous by billionaires like Warren Buffett. Instead, open an online brokerage account that makes it easy for you to learn how to invest, create a manageable portfolio, and make weekly or monthly contributions to it automatically.

How Much Money Can You Survive Without Working?

An emergency fund should have another three to six months’ worth of living expenses in it, so if you need $2,500 a month to live on, you’ll need a total of $30,000 for your “quit your job” and emergency funds combined. If you can save $1,000 a month, it will take you two and a half years to save that much. Save $1,500 a month and you’ll get there in a year and eight months.

If you earn interest on your savings, these times will be a little shorter, but since most online savings accounts pay around 1% interest, it won’t make a significant dent in the total time needed to reach your goal. (You’ll have earned just $365 in interest in 30 months if you earn 1% interest, for example.)

While saving for retirement on top of saving to quit your job may sound daunting, you shouldn’t cheat your future self from financial stability. Those in their mid-to-late twenties should have about $10,000 or more saved for retirement. Those in their thirties are in good shape if they have closer to $35,000 dedicated to retirement.