The United States declaring independence on July 4th, 1776 - 242 years ago - was no small feat. And neither is declaring yourself financially independent.
With wages relatively stagnant, reductions in employer retirement benefits, and increasing costs of living, we Americans have an uphill climb to financial independence. However, that doesn’t mean you shouldn’t be giving it all you’ve got.
This 4th of July holiday, take some time to think about what being financially independent might mean to you. This can be having enough in your savings account that you don’t feel you’re living paycheck to paycheck. It could also mean paying off that final student loan and throwing a little celebration with friends.
My definition is this - being financially independent is reaching the point where your invested assets produce enough income to cover your annual living expenses. At that point, you are free to continue working, take on a new career you are more passionate about, or retire to the local golf course.
As a financial planner, I encourage my clients on a regular basis to live below their means (spend less than they make), pay down any outstanding debts, and invest in appreciating assets. These main principles are the first steps on the path to financial independence.
The United States didn’t achieve its independence with a get-rich-quick idea or lifehack. It took years of effort and determination. This may also be what is required for you to reach your personal definition of financial independence.
Remember those goals you set back on January 1st of this year? Take some time to reflect on the progress you have or have not made so far, and recharge the batteries to continue moving forward.
Tell me - what does your Financial Independence Day look like? Email me: email@example.com