Financial Independence occurs when you’ve saved enough to support you for the rest of your life without needing to work for money. You might choose to work for other purposes such as passion and purpose, but you no longer need an income to meet your expenses. Simply put, financial independence means the ability to manage your money in such a way that you have sufficient funds to live your chosen lifestyle without assistance from others. In other words, enough money to meet all your needs whether you work or not, because a job is really assistance from someone else, and that someone is an employer.
Notice that this definition doesn’t mention amounts of money or the symbols of having money that we often attach to financial independence. To some people financial independence might mean yachts, mansions, and expensive foreign cars, while to others it might simply mean never having to worry about bills again, knowing they will always have a comfortable home and the time and resources to enjoy their interests and hobbies. For many, not having to work a second job, or maybe just having sufficient income so their spouse could stay home with the children, would constitute financial independence. (Yamaguchi & Templer, 1982)
would Describe the target behavior.
So saving money is a great way to get ahead financially. I must practice saving and do it on a consistent basis. I must make minor adjustments to each day and figure out how much savings I would have over the course of a year. Instead of using credit, I would use cash. By using cash instead of credit or debit people, there would be a lot less money spent. On average people will spend 28% less with cash than with a credit card, and 18% less with cash than if th...
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... our spouse is equally disciplined, frugal, and investment-oriented, our efforts toward a better, financially independent life are going to be like struggling in quicksand. (Yamaguchi & Templer, 1982)
Marry the wrong person and the emotional, financial, and social toll it can take on our life will overwhelm almost any progress we can make in your career or pocketbook. As we try to build a life, he or she will be out spending money on status symbols making it nearly impossible to achieve financial independence. To truly build a life of financial independence, we need to have the kind of support that allows us to take risks because no matter what happens, there will always be someone waiting at home that loves unconditionally. It may sound surprising, but a tremendous amount of financial success is based upon proper temperament, budgeting, discipline, and psychology.
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