How To Become Financially Independent
You probably dream of a life where your choices are unencumbered by financial concerns. A life where you can do what you want, within your predetermined means without materially affecting your future standard of living and income. A life in which you are financially independent.
What is Financial Independence?
Financial independence is having enough income or wealth to cover your living expenses for the rest of your life without needing to be employed by or dependent on others. It is the freedom to make decisions that are not restricted by lack of money.
What Does Financial Independence Mean to You?
Financial independence has different meanings for different people. Visualizing what a financially independent life would be for you will help you determine what you need to do to achieve it.
Some do not view it as the ability to completely stop working. They may just want to be able to change jobs when they want, make a wholesale career change, go back to school, or only work part-time.
Others want the ability to enjoy a standard of living, without financial obstruction, that allows them to enjoy their life choices without compromise.
How Do You Achieve Financial Independence?
Of greatest importance is obtaining the ongoing guidance of a qualified financial professional who can consider all of your financial and personal characteristics to formulate a fully comprehensive financial plan to target your goals.
Elements of this plan will include:
- Maximizing income and minimizing expenses:
- Developing additional income/revenue streams including rental income, dividend-paying equity investments, or a second part-time job.
- Strict adherence to a financial expenditure budget.
- Optimizing retirement savings plans and any tax-free savings plans.
- Achieving tax efficiency in all financial matters.
Do Not Confuse Retirement with Financial Independence
Being financially independent is not synonymous with retiring. We will all eventually retire. You may find yourself having to retire without having met all your financial goals. You may have to continue working part-time because you need the money, not because you want to. This is not financial independence.
Being Financially Independent
Financial independence does not necessitate you being ultra-rich. It only needs to provide you the freedom to make choices based on your wants and needs without being compromised by financial constraints.
Financial independence is having the means to do what you want without dependence.
Bloom Can Help You Achieve Financial Independence
One of the key elements to achieving financial independence is developing additional income, which can be achieved by investing in dividend-paying stocks. For over 25 years, Bloom Investment Counsel, Inc. has specialized in one thing and strives to be the best at it—investing in income-generating investments, specifically dividend-paying stocks, which can help you generate income, if needed, and growth from investing in the stock market. If you are a high-net-worth individual looking to achieve financial independence, contact Bloom to learn more about how we can help you achieve this goal.
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.