YOUR PERSONAL PATH TO FINANCIAL FREEDOM: WHEN WILL YOU REACH IT?

YOUR PERSONAL PATH TO FINANCIAL FREEDOM: WHEN WILL YOU REACH IT?

Happy Independence Day to all my US readers! Hope you’re enjoying the day off!

Here’s a holiday suggestion you might find interesting: While you’re celebrating Independence Day, why not take a moment to think about when you want to achieve financial independence? It might sound a bit geeky, but setting a target date for when your passive income will cover all your living expenses can be really motivating. This is the day when you can quit your job, work part-time, start a business, stay home with the kids, become a diving instructor, or travel the world. It’s worth spending a bit of time to figure out how you can achieve this and when you can expect to reach Financial Independence.

There are several key milestones on the path to financial independence. First, pay off all consumer debt, then tackle your student loans, and finally, pay off your mortgage. Once these are out of the way, work towards your “magic number”—the amount of money you need to live off your investments for the rest of your life.

A survey by Capital One 360 found that for 44% of Americans, financial freedom means being debt-free. For a quarter of respondents, it’s about having a comfortable emergency fund for unexpected expenses. Only 10% see it as retiring early. For me, financial independence means being able to do what you want, whether that’s continuing to work because you enjoy it or spending more time with your grandkids. Everyone has their own vision of Financial Independence Day.

Today, I’ve teamed up with some fantastic bloggers who are sharing their views on financial independence. Enjoy their insights!

– DC from Young Adult Money discusses what true financial independence requires in Happy Fourth of July! What Financial “Independence” Means to Me.
– Mr. CBB from Canadian Budget Binder talks about making financial independence a reality by focusing on function over fancy.
– John from Frugal Rules explains that financial independence means being free from consumer debt and having a portfolio that allows you to live life on your terms.
– Kim from Eyes on the Dollar shares that financial independence for her means having enough passive income to cover expenses so she can work because she wants to, not because she has to.
– David from Ashley Park gives six simple tips to get the financial independence ball rolling.
– Tonya from Budget and the Beach offers her perspective on what financial independence means to her.
– Michael from Student Loan Sherpa discusses achieving financial independence from student loans.
– Joe from Stacking Benjamins talks about the impact of bad food and bad choices on financial independence.
– Ben from Ready for Zero explores different definitions of financial independence and how to use your personal definition to motivate your financial goals.
– Grayson from Debt Roundup shares his journey from tackling credit card debt to pursuing financial independence.
– Brian from the Outlier Model emphasizes the importance of taking small steps towards the larger goal of financial independence.
– Joe from Retire by 40 wonders about the cost of living a drifter lifestyle like Jack Reacher and how much you’d need to enjoy that kind of life.

So, where are you on your journey to financial independence? Have you set a Financial Independence Day yet?

This post was featured on Debt Roundup, Evolving Personal Finance, Eyes on the Dollar, and Outlier Model. Thank you!