What Would Financial Independence Mean for You?
We hear a lot about financial independence these days but what would it really mean for you and your loved ones?
You might think that the answer is obvious but it isn’t really. If you are planning to work hard on saving money and spending less then it is important that you understand what you are going to get out of this in the long run?
No More Money Worries?
Anyone who has ever had money worries knows that this is a terrible thing to have in your life. Being short of cash at the end of each month is virtually guaranteed to lead to stress and sleepless nights.
Having a degree of financial independence is definitely something that can make you feel a lot more comfortable about life. However, you have to avoid simply switching one set of financial worries for another.
I used to work in a bank and the customers who were most worried about money were those who had retired early with a relatively decent sum of money. They had achieved some sort of financial independence but were constantly worried about interest rates, exchanges rates, inflation, and the economic outlook.
True financial independence means being able to forget about any money worries. Sure, you will want to keep an eye on your investments and savings but it shouldn’t stop you from sleeping at night.
No More Working Hard?
The classic vision of financial independence involves retiring to a foreign beach and taking it easy. This sounds like a glorious future but will it be your new way of living?
The truth is that being financially independent can still give you some work to do. Maybe you need to research investments, move money around or keep an eye on your business interests. Of course, you can probably do these things from anywhere in the world, even a beach.
To most people, what a bright financial future really means is getting away from the weekly routine of going to work for someone else. If you can start to live and work on your own terms then you are well on your way to a happier life.
More Leisure Time?
As a follow-on from the last point, it seems safe to assume that you will also have more leisure time once you free yourself from the routine of going to work every day.
If you want to enjoy life more then achieving financial independence is one of the best ways of doing it. The combination of more money and less working commitments is the perfect way to a more laid-back life.
Of course, it is then up to you to take advantage of the free time and the opportunities presented to you. Having enough spare money to do interesting things is going to be important if you want to enjoy your leisure time to the maximum.
Finally, financial independence should mean more fun for you. Sure, there is some hard work involved in maintaining your lifestyle and finances.
However, a huge reason for wanting to achieve this independence in the first place is to get a better life. Instead of sitting at home constantly checking your accounts and making calculations, you will want to do more of the stuff that puts a smile on your face.
This could mean travelling, spending more time with your family, or simply doing the things you have always wanted to do.
What else do you want financial independence to add to your life?