Reaching financial independence
30 July 18  /  Insights

Firstly, what is financial independence?

Financial independence is different for each person. Perhaps it means being debt-free and having the mortgage paid off, or choosing a job without salary being the main concern, or the ability to buy a new high-performance car, or perhaps being able to retire early. Whatever it means to you, it is the ability to live and maintain the lifestyle you want, without worrying about money and, most likely, without relying on a monthly salary payment.

The first step in understanding if you have reached financial independence is to define what it means to you. Once you have done this, you need to understand your current financial circumstances. What are your required returns and what are your outgoings? Are you spending more than you have coming in? Do you have high expenses? Do you have enough money left over to invest and save? Whatever your financial situation, it is important to understand the full picture.

A Lifestyle Financial Planner can help you realise exactly where you are today by asking the right questions and gaining a real understanding of your life and current set up.

You also need to consider how you wish to live your future life. You should set goals that are important to you and the lifestyle you want to lead. Again, a Lifestyle Financial Planner can assist here, helping you to recognise when you will be able to achieve these goals and how much money will be enough to do the things you want and to maintain the lifestyle you wish.

If you believe you have enough money to maintain your lifestyle and do all the things you wish, then you have probably achieved financial independence. However, this can take decades to achieve and requires careful planning. It is also important to note that financial independence is not temporary, meaning you should not have to return to work or source another income to support your desired lifestyle.

To be able to achieve financial independence, you must set goals that you want to achieve and then begin working towards them by making the most of your plan. That is the hard bit but your Lifestyle Financial Planner is on hand to help.

To find out more, get in touch with one of our Lifestyle Financial Planners by calling 01865 208012 or click here to email your enquiry.