In the past, people relied on their pensions to feel financially secure in their later years. Currently, such pension plans have become increasingly rare, causing people to reconsider their financial literacy. Millions of Americans feel that, at some point, they will come into incredible wealth to live the rest of their lives comfortably. They assume that putting in more work and receiving greater pay secures a more relaxed retirement.

In reality, it is not important how much you earn. The actual key is understanding compounding—the power of growth on growth. Consider the percentage of your salary you are willing to save and invest, and let compounding foster your financial freedom.

The money you put aside monthly creates a base for your financial future. Do not perceive it as “saving” but as contributing to your Freedom Fund, which will enable you to spend your money as you want. Although modern experts claim that 15% is the optimal amount, the percentage of your savings is up to you.

Remember that you are doing this for your loved ones and yourself, and that the amount you set aside is just a small part of what you earn. Don’t assume you can’t save and avoid interrupting your savings, even with limited funds. Invest the saved money wisely, and over time, it will start working in your favor.

The first step to financial freedom is deciding which amount you are ready to sacrifice. Instead of eating in a restaurant, have dinner at home. This will save you around $40 a week and add up to $2,000 a year. If invested smartly, this 2k could grow to $581,944 in 40 years with an 8% return. So, make saving your new habit. As American economist Burton Malkiel said, the best way to save is not to see the money at all.

A good idea is to make your savings automatic. Call the HR department and ask them to transfer a certain amount to your retirement account whenever you get a paycheck. If you have already done that, consider increasing the percentage of your savings. In case you earn a commission-based income, run your own business, or are self-employed, set up an automatic transfer directly from your checking account.