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
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).
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