In a previous post I said that we have financial independence if passive income from our saving are greater than our expenses. To obtain this goal we save every month some money in some financial tools (stock, etf, bound, cryptocurrency…) with a yield. So suppose I have net salary from my job of $2500 and $2000 expenses every month, and I invest all my savings in financial instruments with 0.67% monthly return when will I be financial independent? In this picture you maintain the money because the passive income are equal to expenses. Only inflation will affect your money. I’ll be financial independent after 225 months
I recommenced to read this before starting your path to financial independence. “Why should I read Letter on happiness of Epicurus? are you crazy?”. The reason is very simple, because the financial independence is a path towards a better life style. So the first and most important question is “what make me happy?” “What happiness really means?”. Read and think what is real important in your life. Financial independence is only finance and math.
I found an nice post about financial independence, you can read here According to the author our life is a path to independence. we are born dependent on the parents and achieve independence working. Nowadays, most developed countries have systems to provide pensions on retirement so we achieve financial independence: we can live without working. Unfortunately we are too old to enjoy life
According to Wikipedia Financial independence means you have enough wealth to live on without working. Financially independent people have assets that generate income (cash flow) that is at least equal to their expenses. Income you earn without having to work a job is commonly referred to as “passive income”. For example, if someone receives $5000 in dividends from stocks they own, but their expenses total $4000, they can live on their dividend income because it pays for all their expenses to live (with some left over).
This is a good question… mainly for fun but it’s also a way to improve my poor english (I’m not english mother tongue) to start learning WordPress (very nice product) and also to teach my child how internet works…