The best part of Financial Independence Day? You get to pick your date! But, what does it mean to be financially independent? In its simplest form, financial independence is the liberty to live as you want, free of financial limitations that would otherwise influence life decisions. Though the definition is different for everyone, for most financial independence means having enough money to live without working for a paycheck.
If this is a goal you’re working toward, the first step in becoming financially independent is deciding what it means for you…and when. This picture shapes every other decision you make along the way in your financial journey. After you determine what that picture looks like, there are a few major habits and concepts that support your path.
Your most valuable asset is TIME! It’s a common misconception that more money or a higher paycheck equals a faster route to financial independence. And, in a way it does. But what matters more is utilizing the right investments that can allow for the growth of your assets and then giving those investments time to grow. The sooner you start investing, the better.
If you want to be free of financial burden, you’ll need to be serious about saving. That means living below your means and taking opportunities to cut your expenses and free up money you can save. Now, this doesn’t mean complete minimalist living, but the leaner you live, the faster you reach independence.
As you learn what it takes to become financially independent, you learn to take smart risks. That could be picking how to invest your IRA or choosing the right goals for your family! Life is full of opportunities; a financially independent person knows which opportunities are right for them. It’s mostly about prioritizing those opportunities that will get you closer to the goals you’ve set for yourself and your family.
Achieving financial independence doesn’t happen overnight. It will be something to work towards with discipline and focus. Don’t be discouraged if it feels unattainable. Our team is experienced in helping people just like you! We are here to help with your vision of financial independence, so please reach out with any questions!