My personal definition of financial independence is the ability to maintain my current standard of living without having to work to pay for it. That means having enough passive income to cover all of my living expenses.
How much capital would that take? If my living expenses are E, then having my capital invested in a cheap stock index fund would probably require my capital to be something like 20-30 x E. If that were the case, I could afford to pay capital gains tax and reinvest enough to offset inflation and only live on the after tax gains and not have to touch the capital.
What is financial independence to me? I think to me, financial independence is a point in my life when I can afford what I want, when I want(within reason, of course). And also I can afford it off the money I make by myself, not what's given to me by my parent. Right now I'm a college kid and I have a few sources of income although they are quite small. Steemit is one of them and beautiful musing is another. I'm making around N12,000 a month from them but it's not enough to keep me afloat so I can't say I'm financially independent. But I'm saving up and soon I'll start learning cryptotrading and Forex. So by the time I'm making around N30,000 a month, I can say I'm financially independent, even though I know my dad will still send me money.
So my point is that, to me, even if I still get my money from my dad, as long as I'm making enough to see something online and be able to afford it without having to save much, then I'm financially independent. Whether my dad adds to it or not, is irrespective because I can survive without him. That's my definition of financial independence
The basis of financial independence or financial freedom is the ability to lead a life without having to beg someone and you should be able to meet your other needs of your life which normal human being aspire to, here it does not mean that you aspire to be a millionaire or billionaire. Here the sense of financial freedom is that you have enough money with which you can comfortably manage your life till your death or say for 30/40/50 years or so.
The best way to express financial freedom is that you do not need to buy any liability.
If you quantify the amount to express your financial freedom then it may not be same for every person and it will again depend upon where you stay, what is the cost of living in that region, the nature of expense you make in general, your sense owning something etc.
Again financial freedom should not lead to being lazy after achieving financial freedom and this is extremely essential and lazy people are not worth of financial freedom rather they will ruin the financial freedom over the course of time.
Financial freedom is an essence of financial health which everyone always aspire for and this is true. This is the most potent dimension of life and it is on the strong side so much so that once you achieve it, the windows of other dimensions of life open up automatically.
Thank you and Have a great day.
For myself financial independence means the house is paid for and you have enough money in your account to pay for your bills and your car and get by every week. You can afford to head out to bars and restaurants whenever you please . If you want to go on holidays next week you can book your flights and head off because you have enough money not to work. That is my idea of financial independence and it is a dream of mine
To me financial independence is when you have enough in the bank and invested that you never need to borrow again.
You are not living form paycheck to paycheck and you have no financial worries. I think you get there when your house is paid off ,your cars are paid off and you have sizable bank account.
It gives you the independence and freedom to live how you want and it doesn't really matter what happens around you.
from my opinion financial independence is the ability to be able to express oneself financially without having to depend on someone else for support. Having quite a fairly paying job can make someone partially financially independent however not fully independent. Someone who is partially independent can afford to live minimally that's if they keep their expenditure low level according to their earning power.
Financial independent comes as a result of having a source or sources of income. A person who is fully independent can maximize their spending abilities to an extent of which they can still keep being independent even after they've exhausted so much, these kinds of people (financially independent) Have a steady source of income and they already have bank accounts with stashed away sizeable amounts, or even cryptocurrency in different online wallets.
Being financially independent is having no limitations when it comes to monetary issues, they can afford to give back to other people conveniently without having to break a sweat. For me it's basically having investments, assets in housing, real estate and also cryptocurrency with bright future prospect.
Financial Independence or Financial Freedom is a life phase where the income of an individual does not depend on the every day effort of that individual but the individual is self funding, self sustaining himself and family effortlessly and indefinitely through the passive income ideology.
Basically it is a state where your needs are on auto-met by a system you created or was gifted to you.
Very few people ever get to this stage in live... Oh well, the crypto world is going to increase that number exponentially..
Strive to be among the exponentials....