The more money you have in the bank, the more your money will “work” for you, even as you sleep in the form of interest and dividends. As Will Rogers once wrote, “the best way to double you money is fold it in half and put it back into your pocket”.
None other than Albert Einstein wrote, “The most powerful force in the universe is compound interest”. Benjamin Franklin thought the same as he donated $5000 to the State of Pennsylvania with the condition it be allowed to compound in interest for 100 years.
After “going to ground”in expenses (living as frugal as possible), finding multiple income sources (we will continue to revisit this), the other pillar for financial freedom (which is key to your equanimity and peace) is growing savings which will have the benefit of compounding interest.
Saving money is hard, but if you force yourself to save 10% of your income from either your “job” or from your work, slowly but surely your compounding interest account will grow and you will be able to live off that amount of money alone.
The key is that after you save some money, say a few thousand dollars, the temptation becomes irresistible to spend it on some lavish item. You may decide you need a new car, a nice watch, etc. Then your savings will be gone, and the power of compounding interest will be lost.
Remember the quote from Albert Einstein, you are saving money for two reasons, one is to have the money as a safety nest, the other is to gain the power of compounding interest.