If you haven’t escaped the rat race then you need to build a freedom fund.
What is a freedom fund?
Your freedom fund is the thing that will shield you from the chains of wage slavery. It will bring out of the Matrix and keep you from getting sucked back in.
It’s money saved up in the bank. Not invested in mutual funds or in a down payment on a house. It’s in the bank, or better yet, spread out between banks. Your freedom fund is the money you have as cushion cash. It’s 50k to 100k – that’s $50,000 USD to $100,000 USD – of money you have at your disposal at any given time.
Some people have an emergency fund, which is 3 to 6 months of money saved up to cover expenses. But that’s not enough. To have a real peace of mind, you need at least $5o,000, at least if you’re in the United States. At the bare minimum $25,000. I’d like it to be a solid 50-100k though.
Your freedom fund isn’t money you’re going to blow. After you have 50-100 grand saved up, then you can invest left over money into stocks, real estate, whatever. But having that initial freedom fund of $50,000 to $100,000 will give you the ability to escape the rat race.
A freedom fund isn’t enough for retirement. But it’s what’s going to give you the rocket fuel to take off from the planet of corporate captivity and boost you into the open universe of choice. A freedom fund, when combined with stable income form you r side business, will allow you to be completely free once and for all.
The first step in getting a freedom fund is realizing why it’s so important. Only then will you be able to do the things necessary to build one. Because in a world of status chasing and fitting in, you’re going to be going against the grain.
Why you need a Freedom Fund
You need a freedom fund to
- Be able to quit your job
- Never return to wage slavery
- Extra money to invest in your business
- Escape from hell
This initial 50-100k will allow you to be able to live for a while without working. And when you already have income coming in from your side business that covers all of your expenses, you’ll be good to go.
The freedom fund is there in case your side business takes a sudden hit or you have a medical emergency. That way you won’t be forced to return to wage slavery because of unforeseen troubles. Ideally, your side business will grow and become your full time business. Then you should amass a large savings where you can use money over 100k to invest in stocks, real estate, and so on.
But having 100k, or at least 50k, in the bank will ensure that you have a freedom fund to back you up. And if you move to a cheaper location, this freedom fund really becomes powerful. In San Francisco or New York, 50k can be up to a year’s worth of expenses if you live cheaply. But in Colombia, the Philippines, or even las Vegas, your money is going to last a lot longer.
The point of the freedom fund is top give you something to fall back on. It’s not about having a plan B. Your plan A is to start a business, become an entrepreneur, and have the life you want. But if your business takes a hit or something happens to you physically, then you need to have money so you don’t have to go back into wage slavery.
Your freedom fund is there to ensure that your plan A works. It’s like insurance, except for yourself.
While investing in the stock market can be beneficial in the long term, it’s money you don’t have in the short term. If the market goes up, you make a little bit of money. If it goes down, you lose money. The freedom fund isn’t there for you to earn interest. You have a freedom fund as money available to you to use anytime in the case of an emergency.
It’s the peace of mind it gives you. You’re not actually using a freedom fund to create wealth. It’s the shield that allows you to grow your business without having a full time job anymore. Eventually you can make a lot of money and become rich through your business. Then you can invest thousands of dollars elsewhere. No problem. But right now, the freedom fund isn’t about beating inflation or getting a return. It’s about allowing you to stay free while you grind + grow your empire.
How to build a Freedom Fund
- Working a job you hate but pays well
- Cutting expenses dramatically
- Starting your side business
- Part time jobs
1. Work that job
Learning how to build a freedom fund means you need to get your bank account up.
And if you’re in the rat race right now, the first step isn’t to just quit. I know you probably want nothing more than to quit your day job. But you need income.
Ideally you’re at least working a corporate job that pays decently. I was in sales and was able to make 6-figures due to getting paid mostly on commission. While corporate sales sucked ass, it was an incredible foundational tool for me with entrepreneurship. And more importantly, the high pay meant I could save money.
I was able to grind at work, close deals, and then see a nice commission check come in. And I was able to take the work ethic and sales skills I learned in order to build my own marketing company. By marketing company I just mean myself still. But the point was is that I got my money up.
You also need to work that job you hate. And if it doesn’t pay well, you need to get a job that does. Sales is always an option if you don’t have any skills. If you have a background in software development or something else then that’s even better.
But you absolutely need to get that money up. You need to be making 6-figures and then save the majority of that cash.
2. Cut expenses
Cutting expenses is also a huge key when you’re figuring how to build a freedom fund. Because making the big bucks only means something if you save it. If you spend all of the money then there’s nothing left over for your freedom fund. Most people start to spend money as soon as they make it. Which then sets them back financially. There’s so many guys who make 100 or 120k but have the same savings as a guy who makes 50k a year.
The only thing you should be spending real money on is an apartment in the city. Because a player needs to have his own place in a good location.
But besides that, and investing in some decent clothes, you need to live cheap as fuck. This means no eating out, cheap groceries, no car or as cheap of a car as possible, no crazy vacations, and buying your own alcohol.
You don’t need to live like a complete minimalist forever. However, when you’re broke (which you are if you don’t have a freedom fund), then you need to live like this. Once you’ve built your freedom fund and own a 6-figure business, you can start to do things like get a decent car, eat out, and go on nice vacations. That’s fine. But that’s after you’ve built your wealth and can afford to do so. If you work a job you hate and don’t have control of your life, you need to figure out how to build a freedom fund. And right now that means reducing your spending.
If you don’t want to have the decent apartment then that will speed things up a lot. I had too much of a sex drive not to at least have a my own apartment. If you’re able to live with parents or live cheaply to build a freedom fund more power to you.
3. Starting your side business
The third must do to know how to build a freedom fund is starting your side business. Entrepreneurship is absolutely essential. It’s not an option. Because if you want to control your life then you need to control your income. That job you work right now if fueling your freedom fund.
But the side business you start will grow the freedom fund at a much higher rate. You’ll also depend on your side business once you quit your job and have the freedom fund built up. It won’t be your side business anymore. It will be your full time business.
20-40 extra hours a week
I recommend putting in an extra 20-40 hours on your side business each week. Combining that with a full work week of 40-50 hours means you’ll be working 60-90 hours a week in total. Which is why most people never build a freedom fund and become free.
Don’t worry. You won’t need to work this much your whole life. But you’ll need to sacrifice leisure time now in order to have more of it in the future. You might need to do this for a year, and then grind solely on your business for another few years before you’re in a place where you can relax.
However, if you choose the right business, like a service based business, then you can build your freedom fund in a year of two. This is combining the money you make from your full time job and your side business.
Some of you guys may be able to quit your job after 6 months of working on your side business. Most of you it will take a year or 2 years. And some of you might need to do it for 3 years. Eventually the income from your side business will add up and will make building your freedom fund happen much faster.
4. Part time jobs
You can also add in a part time job like uber driving or working at a bar. I recommend just focusing on your day job and side business. But if your main job doesn’t pay enough or if you have the work ethic, then taking up a part time job could be beneficial. If you’re doing something like bartending then you can also meet girls while making money.
But only add this in if you’re able to still put 20-40 hours a week on your own business. Because that’s what’s not only help you build your freedom fund, but it’s the thing that’s going to keep you free.
Biggest drains on your fund
The biggest drains to your freedom fund are:
- Student loans
- Sports cars
The first three are all forms of debt. You need to avoid any debt at all costs. If you have student loans, pay them off as quickly as possible. Don’t buy sports cars right now. Buy them later when you’re rich and can buy them in cash without it causing any worry.
Real estate can be a good investment when you pay for it in cash. Again, wait until you’re rich. Don’t blow your freedom fund on a down payment for a house you can’t afford. That’s selling your freedom away.
Blowing money on girls
And of course, we have girls. Some of the single guys on here spend way too much money on expensive dates with girls that don’t like them. Others of you have girlfriends and are always spending money on her.
But the biggest way girls drain your freedom fund isn’t through the money you spend on them. It’s the time you lose. Unless you have a mega high sexual market value, you need to put in time to get laid or in a relationship. And this takes away from time you could be building your freedom fund.
I’m not saying you can’t have sex or have any female attention. But if you really want to known how to build your freedom fund and change your life, you’re going to need to cut down on time you spend with women. Not forever. But at least for the next 6 months to a year. You can still get laid from time to time and date women. You just need to really manage your time efficiently. For me, that meant cutting down a lot.
And if you’re going to go monk mode or do nofap, this is one of the best times to do it. Not only are you not wasting time trying to sleep with lots girls or maintain a relationship. But you’ll have an incredible amount of sexual energy that you can transmute and use for business success.
Build that Freedom Fund
There comes a point where you need to escape once and for all. Some of you might not be there yet. You may be trying lose your virginity or get more experience with girls. I get that. I spent a lot of time chasing girls and cared more about that then getting freedom for myself.
But after a notch count of 15 or 20 girls, you should feel like you’ve done enough. I mean of course you still want to have relations with women. However, there needs to be a point where that’s not a main focus anymore. Don’t make a goal of having to bang 100 girls before you work on your business or need to sleep with 5 super hot girls. Or even find a girlfriend before. That stuff is fine to do one day. Start smaller. If you’ve already slept with 25 or 30 women then you’re already 3 to 4 times more experienced than the average man.
And maybe it’s not girls for you, it’s something else. Maybe you love cars and are spending all of your money customizing your car. Whatever it is, we all have our vices.
Escape slavery of a job you hate
One day you’ll wake up and realize that you hate most of your life at your wage slave job. If you’re in college or high school you can just look around. There’s a reason people dread graduating from college. They know the fun is over.
That’s why you need to shape up as soon as possible. I realized that it didn’t matter how much of a player I was or how good at sex I was. I may have been alpha sexually. But Monday – Friday, I was a beta at work. I didn’t act like a bitch, but I was in the bitch position. I had a boss and I had to do deal with shitty behavior. There wasn’t a choice because I was in the weak position and had to have money coming in.
It didn’t take long for me to realize I needed to have my own business. To successfully quit my job and keep it that way, I needed a freedom fund.
If you realize it’s time to learn how to build a freedom fund then there’s no better time to start than now. Because a few years of grinding and living cheaply will mean you can live the rest of your life like a king.