Saturday, 14 November 2015

My Definitions of Financial Independence

If you are reading the finance blogs, you will always hear the term "financial independence" popping out. Sounds boring? It sounded as if life can only goes on after achieving it. So what is financial independence?

According to Wikipedia, the explanation is : "Financial independence is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities. For financially independent people, their assets generate income that is greater than their expenses."



My definitions of financial independence is to live as per current lifestyles, except that I don't need to work actively for the money. This will free up time spent on work and more on events that are important to me. There is nothing more important than our lifetime. So, what is lifetime? Accordingly to Google search, the explanation of lifetime is : "the duration of a person's life." Let me know if you feel that your lifetime is too long or there is a money tag to it.

I always hear people saying they will have nothing to do if they are not working. Seriously? Let me help those people. Having nothing also means having everything. In the empty space of having nothing, there is plenty of room for limitless opportunities. You can stay in an island for a month, you can cycle around the world for a decade. You can challenge yourself to finish all the books in library. the list goes on. Whatever make you fulfilling with no regret at your deathbed.

For me, I have plenty to follow up with my family time. It is never enough just by giving my 100% of my time to them. There will never be enough time for them. I enjoy sports. I can swim every morning. Jogging every other day. Write and comments on blog. Meet up with like-minded friends. Travelling once a year, spending time to cook and enjoy the gift of cooking. Nurturing my child. The list goes on. Do I need to worry I got nothing to do after financial independence? Be my guest.

Ironically, there are people who will spent more while not working. Guessed they are confused after not working. I will actually have lesser fixed expenses if I don't work full time. For example, I enjoy cooking instead of dining out, less transport cost and able to tap on off-peak benefits, no income tax, no more leather shoes and so on. As I aged, I will have less insurance/annuities to pay and that offset the inflation cost somehow.

Nothing is free, but if you can let go, everything is free.

9 comments:


  1. For early retirement, we should think beyond our children. After certain age, for each passing year our children will require less attention from us.

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  2. Hi CW

    Yup. Better. I got more time for my wife and myself. :)

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  3. Hello FD,

    I tend to think of the freedom of choice after gaining financial independence (FI). If one still wants to work after FI because he is bored, he is by all means able to do so; if the person does not want to work after FI and only wants to idle all day, he is also by all means able to do so.

    The freedom is the prized possession coming out of achieving FI.

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  4. Hello FD,

    I tend to think of the freedom of choice after gaining financial independence (FI). If one still wants to work after FI because he is bored, he is by all means able to do so; if the person does not want to work after FI and only wants to idle all day, he is also by all means able to do so.

    The freedom is the prized possession coming out of achieving FI.

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    Replies
    1. Hi SS

      Bravo! Choice is the essence. Why self limiting?

      Cheers

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  5. Hello FD,
    For me financial independence is as much psychological as material freedom, involving shedding your past assumptions about what is “enough” for you to live happily and well the way you want.
    Or in other words like when you get up in the morning and go to bed at night and in between you do what you want to do free of monetary considerations. That's bliss.

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    Replies
    1. Hi Andy

      Agreed. Look forward to the maximum blissful soon. Stay blissful till I join you.

      Delete
  6. Hi FD

    Financial freedom is using the term financial money and taking that out of the equation to find freedom. I guess i will end up in the same spot as you except that i do want to set another goal for myself when that happens, another set of goal similar to the one we set for financial freedom :)

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    Replies
    1. Hi B

      Great idea. Maybe I will find another great goal when I achieved FI. :)

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