Financial independence is when you have enough income from passive sources (interest on savings, dividends from shares, royalties from books, music, etc.) to meet your monthly expenses. You no longer have to work to live.
If you read Your Money or Your Life, from yesterday’s blog post, you will see that this is not something impossible, only achievable by bestselling novelists, sports stars, lottery winners, and trust fund kids, but rather something that most people can do if they choose to.
Not having to work does not mean that you don’t choose to work. I enjoy my job and would continue doing it even if I didn’t need the money. If that is not the case for you, are you not even more attracted to the idea of FI?
There are some excellent blogs on this topic. Here are two of the biggest:
- Mr Money Mustache (possibly my favourite blog)
- Early Retirement Extreme
Jakob Lund Fisker (from the ERE blog above) also has a great book on the subject that is well worth your attention:
I’m going to take the day off tomorrow for family stuff so this series will resume on Monday. We’ll be looking at time and different investing approaches.
Hope you will join us!