Financial Independence

30 Oct 2016 16:58

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The term "Financial Independence" can me different things to different people. For myself I interpret the definition as

When personal wealth or passive income alleviates the need for choosing to work out of necessity and allows the choice to do and pursue passions that drive fulfillment in ones life without fear from financial commitments necessary to live.

In other words, my definition means I am free to decide on how I want to live without fear of going bankrupt or homeless. This does not mean I will not work but I can choose to do work that I find fulfilling. I believe many people incorrectly associate massive financial wealth with independence however the two are distinctively different. One is about being filthy rich and the other is about freedom to choose. The confusion exists because you do need some wealth to achieve financial independence but just enough to alleviate you from day to day financial burdens.

An article I found recently on "The Simple Dollar" poses a great position on the concept and proposes we should eliminate the term Retirement and replace it with Financial Independence.

This is the second article from The Simple Dollar I have referenced. I am really starting to become a fan of the site and its authors.

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