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 rule of thumb 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, and reducing expenses through mindful living.
Financial independence gives you the freedom to choose work you love rather than work you need.
It’s not about retiring early necessarily, but about having options and security.
Financial Independence: 5 Ways to Keep Your Eye on the Prize
