What Does Financial Independence Mean to You?
Monday June 2, 2008
Financial independence – it's the ultimate frugal goal, but what does it mean really? Trent of thesimpledollar.com says that there are three common (but very different) definitions for financial independence. They are:
- not relying on others to pay your bills
- freedom from all debt
- freedom from having to work for income
Which definition do you use? I tend to regard financial independence as a combination of the three; and so, for me, financial independence is not something that is easily gained. I don't rely on others to pay my bills, but I'm still digging out of debt and socking away money to reach a point where I don't have to work to live.
Where are you at on your quest for financial freedom? And what have you done to get there? Share your answer!
Related Reading:
I agree Erin, for me it’s a combo of all 3. I’m still trying to pay off my debt too. As a single working parent & homeowner, I appreciate all your site has to offer! GOOD STUFF! I also do 3 things that bring me in some extra $$, not regular income, but VERY helpful when it comes to end of the month.
http://hubpages.com/hub/How-To-Make-Extra-Money
For me financial freedom simply means that i owe no one any money including a mortgage and that i have enough money to lead a comfortable life. If that also means being finacially independent by earning my own money that is a real bonus.
Although to me ‘financial freedom’ does mean a combination of the three, it most of all means being able to be able to quietly give notice and get out of my current workplace (and to be able to stay the heck outta any future workplace that I am not sole owner/operator of:).
The first was my post-college goal; accomplished with my first job; the second, I accomplished this year having paid of my mortagage early and the used car was paid off in January; the third, I am working on, but I have enough saved and live frugally enough where I could go a year without working and not accrue debt or depend on others. Actually, I am mostly focused on my highest goal – getting each of my two children through graduate school by age 25, without loans so they can enter the world with professions and debt free as well!