Financial independence is important because it reduces your financial stress and removes your worry about whether you can pay your living expenses or that you’ll have enough saved and invested to live on for the remainder of your life.
How much money do you need to be financially independent?
It basically claims that as a general rule, 4% is a safe withdrawal rate from your investments. Technically, in order to become financially independent, you’ll need to have saved 25 times your annual expenses.
Some of you reading this may achieve financial independence sooner, others may take longer. No matter what side you fall on, give yourself credit for your interest in revolutionizing your life! That said, let’s dive into some of the best financial independence tips that I’ve learned and I’m practicing right now.
Minimize your expenses. This includes living in a more affordable area and home, reducing your car expenses or number of cars you own, cut back on shopping sprees, save on groceries, etc. You get where this is going.
Self-control is one of the toughest aspects of life to master, but it is also so crucial for achieving financial independence too. Without it, you may find your spending and your consumer debt start to balloon.