Financial Independence is More Than Just a Dream
It’s easy to look at celebrities on TV or Instagram, feel jealous, and think that their lifestyle is out of reach. What a lot of people don’t realize, however, is that 9 out of the 10 richest people in the world are self-made entrepreneurs. They’re billionaires, too, and it’s possible to achieve financial independence on a much lower net worth than that.
Conventional wisdom suggests a person can be financially independent with savings of around 28.5x their projected annual spend. For most, that’s an achievable income and one that doesn’t require founding the next Tesla or even working a particularly high-stress job.
What is Financial Independence?
Financial independence means reaching the level where the interest or other returns on your investments pay for your day-to-day living expenses. Some people try to live entirely off the interest, some work on the assumption that they’ll draw down on the investment slowly over the course of their retirement.
The main idea is that someone who is financially independent doesn’t need to work to support themselves. They have the freedom to live life as they please, whether that means traveling, pursuing artistic projects, or doing volunteer work. The life of someone financially independent is fulfilling and varied.
It’s also something that is within reach of the average person with a little planning, hard work, and consistency.
It’s Never Too Late to Start Building Wealth
According to the AARP, 48% of US seniors aged 55 or over have no pension or retirement savings. The longer a person leaves it to start saving, the harder it is to amass sufficient savings to be truly financially independent later in life.
Someone who starts young and saves/invests even a small amount each week will benefit from the wonders of compound interest, and their small but consistent contributions can turn into much bigger earnings over time. Those who are 30 years or more away from retiring can take more risks, try new things, and maximize their gains. If their ideas don’t pan out, they’ll still have time to get back on track and recover financially.
Working for Yourself is Truly Liberating
One of the best ways to achieve financial independence is to work for yourself. Being self-employed means having the freedom to work your way, on your terms, for clients you choose, and on projects that interest you. All of the responsibility falls on your shoulders, which can be scary, but all of the profits go to you too.
If you’re still young enough that retirement feels like a lifetime away, why not get in touch and see how Ace Spencer can set you on the path to financial freedom. Everyone has a great idea in them, so take this chance to dream big and change the course your life is on.