The Importance of Financial Independence

The Importance of Financial Independence

Financial independence is a phrase that gets tossed around too often and usually without any understanding of what it really means—often by salespeople on late night infomercials hocking “get rich quick” real estate schemes, home-based businesses, or investment trading programs. My goal is to take the mystery out of financial independence and to show you exactly what it is and what it provides and to explain what financial independence is not.

Financial independence should be your primary financial goal, and here’s why.

At the root of financial independence is the freedom to choose:

• The ability to choose between several options puts you in control of your finances and your life.
• It allows you to shape your life rather than being at the mercy of someone else’s vision of your future.
• It takes you out of life’s passenger seat and puts you behind the wheel. Suddenly you can choose the kind of work that stimulates and inspires you, without worrying about how much money it will earn for you.
• It also allows you to pursue your hobbies without regard to their cost or time commitment.
• For many, financial independence allows them to volunteer their time and money to worthy causes.

Financial independence also provides security. 

How would you feel if you could live the lifestyle of your dreams without worrying about being downsized, having to work two jobs, or sacrificing time with your family? When you become financially independent, your sense of security comes from having control over your life and your future. Without financial independence, your life is dictated by someone else—mainly your employer. Your security is at the hands and at the whim of an organization or an individual with their own best interests at heart—not yours.

What is financial independence?

It means different things to different people. Tune in for the next lesson to explore how many define independence – and what it might mean for you.

The proceeding blog post is an excerpt from The Six-Day Financial Makeover: Transform Your Financial Life in Less Than a Week!, available now on Amazon.