The idea of financial independence (FI) can be different for many people. For some, the idea of FI is one of having enough income to cover your expenses for the rest of your life without having to be employed. For others it may be saving and investing so as not to rely on others to achieve your financial goals. No matter your definition, FI is about setting and reaching a goal which will then enable you to live comfortably for the rest of your life.
One way of doing this can be to create streams of income (passive income) which can cover your expenses based on the projected cash flows. Once the inflows can cover expenses for the rest of your life, and any possible future changes in expenses, then one can be considered to have achieved FI. Another way of achieving this is to accumulate a lump sum, through saving, investing or entrepreneurship, from which periodic drawdowns can be made to cover expenses for the rest of one’s life.
https://www.jamaicaobserver.com/sunday-finance/financial-independence_225727?profile=1056
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