What is financial independence?

You wake up at the moment you choose. All your time is taken up by an activity you are passionate about, whether or not you get any money out of it. The bills are still getting paid and you live a reasonable life. You’re not particularly wealthy but you’re stable financially. Doesn’t it sound exciting to have such a life? That, my friends is true freedom. It’s liberty to plan your days. Now, here’s a question, are you at that point in your life? Would you like to get there? I hear a resounding yes, right? I’m guessing you’ve heard about financial independence. And the scenario I’ve just painted is what that is.

So, financial independence is that point where you have an income from passive investments that earn you enough money to afford your living expenses for the rest of your life. Another angle to it is, having enough money saved up, that can cater for your expenses for the rest of your life.

Nobody wants to work until they’re old and frail, just to pay the bills. You want your money to work for you, right? We all want to be masters and not servants. As long as you depend on your active employment to survive, then, folks, you’re not financially independent. You see, you know you’re financially independent when you no longer need to actively work to pay your bills. The good thing about it is you may choose to engage in a certain activity simply because it’s a passion that you have. There’s no obligation. Sounds great, doesn’t it?

Now, how does one achieve financial independence? Before we move on, let’s get one thing straight. Attaining financial independence doesn’t happen overnight. It’ll take a great deal of work and sacrifices to get you there. You’ll have to give up a lot of things that you love. And as you’ll see, it’s a long journey that not many have the heart to embark on. I assume that since you’re still here, you’re willing to do what it takes.

The Fire Fellow is here to help and will be posting discussion topics on achieving financial independence.

As usual, if you have any questions, Ask the Fellow!

 

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