What Is Financial Independence?
Financial Independence (FI) is when you no longer have to spend your time to earn your living. Your passive investments earn enough on their own to maintain your desired lifestyle.
It is freedom.
But don't you need to be 65+ to retire?
Heck no! Once you have hit your FI Number, you will have a sustainable money making machine. Regardless of your age, your assets should be able to sustain your lifestyle indefinitely!
What is my FI Number?
Calculate your desired annual expenses, and multiply that number by 25. When you have that much in your investments, you my friend are financially free!
So to sustain $50,000 per year, you would need 50,000 x 25 = $1,250,000 in investments. But there is a way to bring that number down even more!
Do I need to be an expert stock picker?
Oh gosh no. Trust me, I’ve tried. After trying almost every form of investing possible, I’ve realized my time is better spent creating more income streams, and passively investing using index funds. Simple wins, after all
But I only make $xxx per year! It's not possible!
The best part about financial independence is that it doesn’t take an extreme income to produce outstanding results. It’s all about your savings rate.
And if you can only save 10% of your income, it will take you MUCH longer to achieve FI than if you could save 50% or more. Once you’ve cut out the easy ways of saving, it’s time to get into the side hustle game 🙂
Hey there! I’m John – a husband to an amazing wife, dad to 3 rambunctious kiddos, and a personal finance nut!
After graduating as a broke college kid, I hopped on the hamster wheel of corporate America, and started running.
After the honeymoon period of “The American Dream,” wore off, I started to look for the way out.
After discovering FI, I started optimizing my life, and quickly grew to over $1,000,000 by age 30. I’m still on the grind to achieve FI, and am documenting the entire journey here.