I’ve started this blog on financial independence, but I have yet to define it for myself. Goal-setting is kind of an essential first step in this (or any) endeavor, so I should set my definition of what the goal is when I speak of achieving financial independence. People may have a general idea of their own definition, but it’s best to make it concrete rather than dealing with generalizations in their head.
So, what is my definition? I think it’s similar to what others have in mind, which is to have enough passive income to cover my needs/expenses without having to actively work. Now, the passive income is likely not 100% passive but more of a sliding scale between active and passive. If you invest, you still need to do research and make the purchases. If you have rental income, you might have to do upkeep or deal with properties or tenants. If you blog, you might have to, uh, blog. However, each of these likely requires less time than holding a full-time job and allows you to pursue what interests you rather than working for someone else.
Now that I’ve defined what financial independence means to me, it will be easier to start defining steps to achieve that goal. So, what’s your definition?
Tags: financial independence