With it being the week of the 4th of July it’s pretty fitting to talk about financial independence. But what really is financial independence? To begin with, it’s a pretty big buzz word that is being used on different social media platforms to news outlets. The most important thing to know about financial independence is that its meaning is different for everyone.
So to turn the question around- what does financial independence mean to you? What do you want the power to do? Or what do you NOT want to do? I encourage you this week to take 10-15 minutes to consider what your definition of financial independence is. And don’t worry I have included examples to help you brainstorm on this. I also highly encourage you to write down your thoughts.
Here’s a few common examples of financial freedoms people want to have
-The ability to leave a job if it is no longer the right fit for you
-Having an emergency savings that you can dip into should you an ACTUAL emergency occur
-Not living paycheck to paycheck
-The ability to retire early
-Being able to donate to social causes or charities whenever you want or need to
-Paying for the kids to go to college without it disrupting your financial goals or retirement plans
Keep in mind these are just a few ideas. Financial freedom for you is defined BY YOU. That is the whole point of freedom is that you are in the driver’s seat and making the decisions that are best for you and your family when applicable. For those that are married or in a relationship this is a great activity to do with your spouse or significant other. Sit down and let yourselves dream about what a financially free life looks like to you. And don’t forget you don’t have to agree on every single part of this journey but communicating the different types of financial independence you want to have will make all the difference.