Financial independence isn’t just about how much money you make or have saved. It’s about having the financial freedom to make your own choices. But how do you know when you’ve achieved it?
___________________
Imagine two people.
The first earns $150,000 a year but spends nearly everything they make. They depend on their next paycheck to cover their bills.
The second earns $70,000, spends less than they earn, has no high-interest debt, and has built savings and investments that can support their future goals.
Who is closer to financial independence?
It’s probably the second person.
Your income matters, but what you do with your money matters more. Financial independence is about moving beyond depending on others, or your next paycheck, to having the resources and confidence to support yourself.
Let’s look at what financial independence means, how to achieve it, and a simple way to measure your progress.
Continue reading “How do you know when you’re financially independent?”