Happy Independence Day to all my U.S. readers! Hope you’re enjoying your day off!
Here’s a holiday tip that only a personal finance blogger might suggest: While you’re celebrating Independence Day, take a moment to determine when you want to achieve financial independence. I know it sounds a bit geeky—who would think about finances during a fireworks show?
When will your own Financial Independence Day be? You can use this independence calculator to find out. This is the day when your passive income will cover all your living expenses, allowing you to live life on your own terms. You could quit your job, work part-time, start a side business, stay home with the kids, become a diving instructor, travel the world—whatever you want. So, it’s worth spending some time to figure out how you can create a plan and when you might reach financial independence if you stick to that plan.
There are several significant milestones on this journey. First, pay off all consumer debt, then student loans, then your mortgage. Finally, reach your “magic number,” the amount of savings that will let you live off your investments for the rest of your life.
A survey by Capital One 360 found that for 44% of Americans, financial freedom means being debt-free. A quarter of the people surveyed said it’s having a comfortable emergency fund for unexpected expenses, while only 10% thought of it as retiring early. For me, financial independence means being able to do what you want—whether that’s working your day job because you love it or spending time spoiling your grandkids. Everyone has a unique plan for their Financial Independence Day.
Financial Independence Day Roundup
Today, I’ve teamed up with some great bloggers who are sharing their thoughts on financial independence:
– DC from Young Adult Money discusses what true financial independence means in “Happy Fourth of July! What Financial ‘Independence’ Means to Me.”
– Mr. CBB from Canadian Budget Binder talks about turning dreams of financial independence into reality.
– John from Frugal Rules shares how being financially independent means being free from consumer debt and having a portfolio that lets you live life on your terms.
– Kim from Eyes on the Dollar describes financial independence as having enough passive income to cover expenses, allowing you to work because you enjoy it, not because you have to.
– David from Ashley Park shares six simple tips to start your journey toward financial independence.
– Tonya from Budget and the Beach discusses what financial independence means to her.
– Michael from Student Loan Sherpa talks about achieving financial independence from student loans.
– Joe from Stacking Benjamins shares thoughts on bad food and bad choices.
– Ben from Ready for Zero explores different definitions of financial independence and how to use your unique definition as motivation.
– Grayson from Debt Roundup talks about overcoming credit card debt and the challenging yet rewarding road to financial independence.
– Brian from the Outlier Model believes financial independence is a big goal achieved through smaller steps.
– Joe from Retire by 40 examines the cost of a comfortable drifter lifestyle like Jack Reacher’s, illustrating what it takes to live minimally but freely.
Where are you in your journey to financial independence? Have you set your Financial Independence Day?
This post was featured on Debt Roundup, Evolving Personal Finance, Eyes on the Dollar, and Outlier Model. Thank you!