What Really Is Financial Independence

What Really Is Financial Independence



What Really is​ Financial Independence
Many of​ us believe the myth that financial independence means having a​ lot of​ money and assets .​
We tend to​ focus only on earnings and the so-called wealth build-up .​
But have we ever asked ourselves what really wealth is? is​ not wealth just having the money to​ support our needs at​ any given time? If we believe in​ this, then we could be financially independent without having very much cash .​
If our chosen needs are modest, then all we need is​ a​ modest level of​ earning assets and we would be financially independent!
Financial independence is​ simply having the means to​ maintain the lifestyle we choose to​ have without having to​ actively work .​
It is​ the state of​ economic well being where our personal investments or​ savings are generating passive income enough to​ cover our expenses consistent with the level and kind of​ lifestyle we want..
Passive or​ investment income is​ key to​ financial independence .​
Without that income, we will never achieve financial success.
Like for instance, as​ an​ employee, our monthly pay allows us to​ have a​ certain level of​ lifestyle right now .​
If we are to​ become financially independent, we have to​ accumulate earning assets and/or investments that will generate earnings that will allow us to​ maintain our current level of​ lifestyle by the time we retire.
In another sense, we become financially independent when we reach the point where we stop working and yet we can provide our basic needs .​
This means that our passive income, or​ the money we earn through our assets and investments are sufficient to​ provide for our daily needs such as​ food, shelter, clothing, education of​ our children, medical expenses, and even some luxuries.
Financial independence can be achieved at​ any stage of​ our lives at​ any age .​
We just need to​ plan for it .​
We do not need to​ wait to​ become old enough before we can achieve financial independence.




You Might Also Like:




No comments:

Powered by Blogger.