Financial independence doesn’t require millions of dollars – it’s about having enough passive income to cover your basic living expenses.
The more modestly you live, the less money you need to achieve independence.
A common theory is the 4% rule: if you can live on 4% of your investments annually, you’re financially independent.
This means you’d need 25 times your annual expenses invested to maintain your lifestyle indefinitely.
Focus on both sides of the equation:
- building wealth through saving and investing
- reducing expenses through mindful living
Financial independence gives you the freedom to choose work you love rather than work you need.
What is the 4% Rule for Early Retirement & How Can it Help You?
