I thought I’d jump straight to the point of this blog: reaching financial independence. But what does that really mean?
Financial independence is when you no longer need to work because you’ve generated enough passive income to support your lifestyle.
Wait, what?
Yes, it means you have enough money coming in to live your life without needing to go to the office every day!
But financial independence can look different for everyone. It varies for me, you, a big company CEO, or someone deep in debt. We all have different needs.
In my case, I’m currently traveling, so I don’t have rent to pay. I’ve rented out my apartment, and the rent covers my bills. But I still need to pay for hotel rooms when I’m not camping, as well as food and gas for my motorcycle. There are also costs for visits, treats, and drinks. Overall, my life costs me about $1400 per month, which is roughly the price of a small apartment in Manhattan.
If I were living in Manhattan, on top of that $1400, I’d need an additional $1000 or so for bills, food, and general expenses, plus plane tickets for holidays. That’s a lot more income to generate, and it could disrupt my plan to achieve financial independence.
Looking forward to my future financial freedom, I have to be extra careful. If I need $1400 today, I might need $3500 tomorrow, or even more. There’s no way to know for sure. As frugal as I may be, I hope to start a family someday, which would be expensive. Currently, I have some passive income that I’ll talk about later, but it’s not enough to let me stop working forever or dedicate my time fully to my passions.
Well, that’s not entirely true. I’m already doing what I love—traveling full-time, blogging, and writing for a few travel websites that pay me to explore and enjoy this incredible life.
But I still can’t afford to quit working completely. So, I need to find other income sources, like investments or starting a side business, to sustain my future lifestyle.
Is it impossible? No, not for me, and not for you if you’re passionate about this goal. It takes time, and no one gets rich overnight, but it is possible.
Some people predict the day they’ll achieve financial independence by calculating when they will earn a certain percentage of their current salary through passive income (like real estate rentals, dividends, or website earnings). I don’t see myself doing nothing and just sitting around. I’ll probably continue working a little, but only on things I love. Financial independence for me will be when doing what I love generates enough income to meet my needs.
I love teaching and I’m pretty good at it. People are usually good at what they love. But I can’t imagine teaching the same class for 40 years on a teacher’s salary. Maybe I could start an e-course, give it when I feel like it, and make it so good that people would happily pay to attend. That would mean total independence for me—being my own boss and working whenever I want. This is my goal, and I invite you to join me on this journey!