{"id":35869,"date":"2023-07-14T22:19:32","date_gmt":"2023-07-15T02:19:32","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/the-point-you-become-financially-independent\/"},"modified":"2023-07-14T22:19:34","modified_gmt":"2023-07-15T02:19:34","slug":"the-point-you-become-financially-independent","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35869","title":{"rendered":"The Point You Become Financially Independent"},"content":{"rendered":"
\n

If you want to become financially independent, you\u2019ve got to know what it means to be financially independent. It\u2019s not that difficult to get your arms around. A straightforward operational definition does the trick.<\/p>\n

\u201cYou will know if you are financially independent if you have eliminated your debt, have a financial reserve that can sustain you for an extended period, and have reduced stress levels when managing your finances,\u201d says Annette Harris, owner of Harris Financial Coaching in Jacksonville, Florida. \u201cFinancial independence is achieved if you are not dependent upon your employer, income from your business, or financial assistance from an outside source.\u201d<\/p>\n

Why should you become financially independent?<\/h2>\n

Definitions alone, while useful, won\u2019t necessarily push you toward your goal. It helps if you know why you should become financially independent.<\/p>\n

Here, you want to paint a specific picture of what your life looks like once you\u2019ve achieved financial freedom. This visualization will focus your attention on the benefit of achieving this objective. It won\u2019t be a theory. It will be something practical enough for you to imagine how it will help you right now.<\/p>\n

<\/fbs-ad><\/p>\n

\u201cFinancial independence means having enough financial stability and resources to support one\u2019s desired lifestyle and meet financial goals without depending on others for financial assistance,\u201d says Adam Garcia, CEO of The Stock Dork in Orlando, Florida. \u201cIt includes being able to cover essential expenses like housing, food, healthcare, and education, as well as discretionary spending and future financial planning. People achieve financial independence by generating income through investments, savings, or entrepreneurship, which helps them maintain their desired standard of living and achieve long-term financial security. It also requires responsible management and control of one\u2019s finances, making informed decisions about spending, saving, and investing.\u201d<\/p>\n

The biggest advantage offered by financial independence is that you can control the things that matter most in your life. You\u2019re beholden to no one. You are the master of your own domain.<\/p>\n

\u201cBeing \u2018financially independent\u2019 means having enough wealth or income-generating assets to cover your living expenses without dependence on employment or financial assistance,\u201d says Tyler Seeger, managing director at Retirement Being in Laguna Niguel, California. \u201cIt\u2019s about being free to choose how to live your life and spend your time without worrying about your next paycheck.\u201d<\/p>\n

Why is it hard to become financially independent?<\/h2>\n

For all its allure, why are so few people financially independent? The fact is, it\u2019s not easy to achieve financial independence. What makes it so hard?<\/p>\n

It\u2019s your daily routine. The future ideal of financial independence sounds good, but there is a certain comfort in the status quo, even if it\u2019s not in your best interests long term.<\/p>\n

\u201cIf you\u2019re relying on outside income, you\u2019re not truly financially independent,\u201d says James Allen, the founder of Billpin in Los Angeles. \u201cWhy? Because you\u2019re still tethered to someone or something else for your livelihood. True financial independence means your income is self-sustaining, generated by your own investments or businesses. It\u2019s about being the master of your own financial destiny, not a passenger on someone else\u2019s ship.\u201d<\/p>\n

Financial independence also requires you to work at some things and sacrifice others. Think of it as a fight between accumulating assets and eliminating liabilities. That\u2019s never easy. Especially in a world that rewards immediate gratification.<\/p>\n

\u201cBeing financially independent means having income from investments,\u201d says Melissa Terry, a CFA
\n CFA
\n <\/fbs-ticker> at VEM Tooling in Kenner, Louisiana. \u201cThese investments should cover expenses without the need for extra work income. Also, it means being free from debt burdens or having manageable debt that does not suppress one\u2019s financial resources.\u201d<\/p>\n

What are the steps you can take to become financially independent?<\/h2>\n

The good news is there are definitive steps you can take to achieve financial independence. It begins with going back to the beginning of this article. What does financial independence mean to you?<\/p>\n

Before you answer, here\u2019s a hint: don\u2019t think about it like everyone else does.<\/p>\n

\u201cMost people think of financial independence as having more than enough money so as not to have to go to work every morning,\u201d says V. Henry Astarjian, managing director at Waterstone Advisors, LLC in Walpole, Massachusetts. \u201cThat is true to some extent. But as people live longer, financial independence can also mean having a satisfying career where you can work productively well into your later years. We are now seeing more people in their eighties and nineties who are sharp as a fiddle and who are still working, supporting themselves, and contributing meaningfully to others. If you have either of these, you are financially independent.\u201d<\/p>\n

Being imaginative helps you frame financial independence in a way that\u2019s most meaningful to you. Still, getting there comes down to the usual blocking and tackling.<\/p>\n

\u201cOne effective strategy to increase the chances of gaining financial independence is \u2018regular and disciplined savings combined with prudent investments,\u2019\u201d says Brandon Juodikis of BRJ Wealth Management in Chicago. \u201cConsistently setting aside a portion of your income for savings and investments helps build wealth over time. By investing wisely in diversified assets, you can benefit from compounding growth, which accelerates your wealth accumulation. This strategy allows your money to work for you, leading to potential financial independence in the future.\u201d<\/p>\n

Finally, don\u2019t overshoot your goal. Being financially independent doesn\u2019t mean you have to appear in the newest incarnation of Lifestyles of the Rich and Famous<\/em>. If you stop and consider it, targeting a more modest lifestyle definitely lowers the bar when it comes to achieving financial independence.<\/p>\n

Mark Chen, founder\/CEO at Billsmart in New York City, says, \u201cYou can tell if you are financially independent if you have enough assets or steady income going in to not worry about running out of money if you live a good but not extravagant life.\u201d<\/p>\n

A simple life doesn\u2019t have to limit you to going back and forth on the rocking chair. You\u2019re still allowed to have fun.<\/p>\n

Would you like to find out more about side hustle and other entrepreneurial topics? Click here to sign up for Chris Carosa\u2019s newsletter and receive a free three-step checklist to determine if your idea has what it takes to succeed.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you want to become financially independent, you\u2019ve got to know what it means to be financially independent. It\u2019s not that difficult to get your arms around. A straightforward operational definition does the trick. \u201cYou will know if you are financially independent if you have eliminated your debt, have a financial reserve that can sustain […]<\/p>\n","protected":false},"author":1,"featured_media":35870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-35869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-featured"],"yoast_head":"\nThe Point You Become Financially Independent | iFintechWorld<\/title>\n<meta name=\"description\" content=\"If you want to become financially independent, you\u2019ve got to know what it means to be financially independent. 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