What is Financial Independence and why is It Important?
Ever thought of living a problem-free life with enough resources and capital to explore your skills and abilities? If not, then you must be interested in understanding what financial independence really is. Generally, financial independence refers to having more quality time with your life, without necessarily having to work. In other words, it makes money work for you. Financial independence is when you can spend on anything you desire, for any amount of money without really feeling the side effects of ‘excessive spending’. Feels like a good thing? It probably is. So, with the juicy part of financial independence, what then are the benefits of financial independence?
One of the benefits of financial independence is peace of mind. One of the things that make people fear getting broke is having expenses that are way beyond whatever they are earning. As a matter of fact, this is the main reason why many people go broke. With financial independence, you can simply spend on what you desire without necessarily worrying about your account balance. Furthermore, money is still reflecting on your account as you spend. With financial freedom, you can easily make decisions that are not limited, and peacefully enjoy your money!
Financial independence facilitates early retirement. Ever wondered why people work until their last day in office when they are issued with retirement letter? It’s because they want to secure their pension which they hope to spend in one or two investments. Truth of the matter is that, pension is never enough to take care of all your financial problems. However, if you invested a bit earlier, and have good flow of income, you really don’t have to wait till you get sixty just for some few hundred or thousand dollar pension. When you have goof flow of cash, you can take an early retirement earlier as you will be having enough resources and capital to take care of your needs.
Assured financial security. Financial security simply means that you have enough money to take care of your emergencies, and other goals requiring money. With financial freedom, you can take care of any kind of emergencies that comes your way without having to take loans or such. Further, you can accomplish your financial goals easily and faster, without hesitation or stress. For instance, in case you have an emergency medical need, you can easily call your doctor or go to the best hospital without any hesitation.
Financial freedom and independence is technically insurance to unemployment. If you have some investments or enough capital and resources to take care of your needs, you really don’t have time to rely on an employment that pays after thirty days. Neither will you have time waking up every morning, spending almost 8-hours a day working just for a little income at the end of the month. With financial freedom, you can just focus on increasing your investment and assets so that more money can be your way. Conclusively, with financial freedom, adverse effects of unemployment will be nothing but stories to you.