Happy Independence Day to all my US readers!! Hope you are enjoying the day off!
To quote Forbes.com,
Here’s a holiday suggestion that only a personal finance blogger would make: While you’re celebrating Independence Day, take some time to nail down the day you want to become financially independent.
Super geeky, right? I mean, who in their right mind would miss the fireworks to crunch financial numbers!
When is your own Financial Independence Day going to happen? You can use this independence calculator to find out!
That is the day your passive income will cover all your living expenses, allowing you to do whatever you want without money being an object. Quit your job, work part time, start a side business, stay at home with the kids, become a diving instructor, travel the world, you name it. So it deserves a little of your time to find out HOW you can set up a plan and WHEN, if you follow that plan, you will reach Financial Independence.
There are several big milestones on the way, first paying off all consumer debt, then your student loans, then your mortgage, then reaching your “magic number”, the size of the nest egg that will allow you to live off investments for the rest of your life.
According to a Capital One 360 survey, for 44% of Americans surveyed, financial freedom means being debt free, while a quarter said it was having a comfortable emergency fund to help with unexpected expenses. For only 10% of people, it meant retiring early. For me, it is simply doing what you want, work your day job as usual if you love it and spoil your grandkids, sit on a hammock and sip cocktails, each one has a different plan for that Financial Independence Day.
Financial Independence Day Roundup
Today I have teamed up with a few awesome bloggers who are sharing their views about Financial Independence, enjoy!
DC from Young Adult Money talks about what is required for true financial independence in Happy Fourth of July! What Financial “Independence” Means to Me.
Mr CBB from Canadian Budget Binder says “Financial independence to some might be in their dreams but it doesn’t always have to be a figment of your imagination. If we worry less about fancy and more about function then the future might seem a bit brighter. Come with me as I take you for a walk through my dreams of financial independence in a perfect world, and then I awaken.”
John from Frugal Rules says “Being financially independent to me means to be free of the burdens of consumer debt and having a portfolio that allows you to do what you want in life as opposed to living life in a cubicle. While it may seem difficult to achieve, it is possible with time, persistence and a commitment at looking for unique ways to grow your assets. By starting early and thinking outside the box you can best set yourself up for achieving financial independence.”
Kim from Eyes on the Dollar says “Financial Independence Day for me means having enough passive income to cover expenses and allows me to work because I want to and enjoy it rather than because I have to pay bills. I believe anyone can achieve financial independence with the desire, a plan, and by keeping your eyes on the dollar until you reach your goals.”
David from Ashley Park shares with us six simple tips to get the financial independence ball rolling.
Tonya from Budget and the Beach gives us her views of what Financial Independence means to her.
Michael from Student Loan Sherpa talks about Financial Independence from student loans.
Joe from Stacking Benjamins talks about Bad food and bad choices.
Ben from Ready for Zero explores the different definitions of “financial independence” and discusses how to use your own unique definition as motivation to accomplish your biggest and baddest financial goals.
Grayson from Debt Roundup has pushed through credit card debt and now is on the bumpy road toward financial independence. He is finding out that this road is full of twists and turns, yet each one is more rewarding than the last.
Brian from the Outlier Model says “Financial Independence is a big goal. To get there takes a lot of smaller steps, just like most things in life. We plan on making these little steps eventually lead to the freedom of Financial Independence!”
Joe from Retire by 40 wonders How much does Jack Reacher’s Financial Independence cost? and says “Living a comfortable drifter lifestyle isn’t cheap. See how much you would need to enjoy sleeping in cheap hotels and wear cheap clothes for the rest of your life.”
Where are you in your journey to Financial Independence? Have you set a Financial Independence Day?
This post was featured on the Debt Roundup, Evolving Personal Finance, Eyes on the Dollar, Outlier Model, thank you!
Canadian Budget Binder says
Thanks for including my post in your collection of 4th of July Independence Day posts Pauline. I have plenty to read today.
Jane Savers @ Solving The Money Puzzle says
I think about my debt several dozen times each day but I also think about FI and it will not happen for 11 or more years unless I get adopted by a very wealthy family who would love to have an adult daughter because it is so much less work than adopting a baby.
Mrs. Pop @ Planting Our Pennies says
I ran some numbers earlier this year after reader Your Money or Your Life, and our projections put financial independence / early retirement on our 36th birthdays if we can keep up our savings/earnings. =)
Debt Roundup says
Thank you for putting this together Pauline and including me. I really appreciate it!
Michael @ The Student Loan Sherpa says
Thanks again for putting this list together AND for including me. You are the best!
Happy Independence Day and thanks for including me in your carnival. It was a great idea and fun to see everyone’s perspective.
Betsy / CollegeMom says
Pauline…I think it is pretty exciting to set a date like that and don’t care how geeky it is. Most people who know me think I’m a bit geeky anyway. I set goals and deadlines for so many other things, so I think I might just set an impossible goal and see just how close I come.
My Wealth Desire says
I am still fighting to obtain my real Financial Independence Day. In God will, I hope a can reach my goal very soon. I want to be free from finances and to be happy as well.
Good one, Pauline! Sorry for not taking part but thing here have been mad.
Pauline P says
Jon @ MoneySmartGuides says
My definition of financial independence mimics yours – the ability to do what I want without having to worry about money. That isn’t to say I can go out and buy a Leer jet, but rather work if I want to, go on a trip if I want to.
I haven’t set a concrete date but am always running numbers to see how things are progressing.
Pauline P says
My initial date was 40 years old. It ended up being 29. It was so motivating seeing it get closer and closer!
Laurie @thefrugalfarmer says
Loved this series, Pauline!!! It was inspiring reading everyone’s definition of financial independence. Can’t wait till we get there!
Pauline P says
Thank you Laurie, that will be sooner that you think if you keep up with the good work. Have a nice weekend.
It’s looking like October 2020 for us, Pauline. Hope you have a bang-bang time in Guatemala this weekend!!!
Thanks for including us! I really enjoyed reading about how everyone is making their way towards financial independence. I’m targeting 35 but with the more realistic expectation that it will fall somewhere between 35 and 40. 🙂
Tammy R says
Yes, we just had this discussion on the walk this morning. What exactly does financial freedom mean? To me it means not just being debt free but being able to choose your work based on what you want to do not what you have to do. In order to reach it, we have significantly reduced our debt by prioritizing, and in doing so see that Independence Day with much more clarity. While we would love for it to be 2020, we keep making decisions that move it closer to 2013 rather than farther away!
Thank you for including the resources/calculator, Pauline!
Pauline P says
How can you have deep talks while walking so fast? I am in awe. 2020 is not that far, if you guys keep having fun you’ll be there in no time.
Tammy R says
Thanks for the confidence, Pauline. We’re starting Pauline U. this week with your new blog. That’s what we’re calling your new website – Pauline University. 2020 doesn’t seem that far away at all when we have such great information to support us as we bumble through life.
Pauline P says
haha, Pauline University I love it! You guys really have a fantastic way with words. Welcome then, class of 2020, hope you graduate early 🙂