Financial Independence is a state of being financially free. It is income that is earned without the need to work. This income is also referred to as passive income. This means that you can work less and have more time for other things. Financial independence is achievable for everyone and can help you achieve your financial goals. Read on to learn how to achieve it!
When we achieve financial freedom, money is not driving our decisions anymore. We no longer have constant anxiety and stress regarding money. We no longer need a day job to pay our bills and live the life of our dreams. It is not about having a high net worth; it is about feeling confident with your financial situation. When we achieve financial independence, we are able to invest a portion of our income passively, which covers all of our expenses and allows us to lead the lifestyle we want.
Building a successful business or rental property is another way to build wealth. This type of asset can be sold for a substantial profit. The skills and knowledge that we have acquired throughout our lives are also assets. We didn’t all grow up knowing about the stock market or how to run a small business, but we can learn about them. We can build our assets through different strategies, but it all depends on our actions.
Financial Independence is possible for anyone. The median household income in the U.S. is $68,000, a comfortable middle-class salary. For those earning that level, the first step to financial independence is to invest at least 4% of their total assets. This amount will enable them to live without relying on a paycheck. If you invest at 4% of your total assets each year, you can live comfortably off of your investments for the rest of your life.
