Oh for that day… That day when we don’t have to turn up to work anymore and we can spend our time on whatever we please. That day when the money stress is gone and the options abound. That day called financial independence.
You are considered financially independent when you have enough passive income to meet all of your expenses without working anymore. This income might come from dividends, selling assets, rental income, a business you own or a number of other sources. For most people it’s the dream.
A lot of people think it’s out of reach for them, that they’ll never achieve it no matter what they do. The truth is that every single person will, at some point, become financially independent and no longer work. The question is not if you’ll become financially independent, the question is simply when will it happen and what will it look like for you.
For all of us there is a day when we will no longer work for our money. For some of us this will be the day we turn 65, for others it will be much sooner and for some it will be much later. Realising that there comes a day when you don’t have to work anymore, should encourage you to make good choices today to help you realise the dream of being free from your job. It won’t mean you stop working, it won’t mean that you live a life of leisure all day every day, it won’t even mean that your life is trouble free, it just means you don’t have to earn another dollar to keep living.
It starts by understanding that you are going to need to accumulate an asset base to support you. To accumulate that asset base you’re going to need to have excess cash flow that you can use to invest. Those investments will grow, and as you keep making contributions you’ll begin to build an asset base that starts to supplement your income. With some focus, guidance and good investment principles you’ll be able to reach your financial independence sooner, rather than later.