How To Become Financially Independent, According to 3 Experts

How To Become Financially Independent, According to 3 Experts

Cynthia Measom  Tue, February 14, 2023

For some, financial independence seems like an impossible dream and probably always will be. Others, who are more optimistic, might believe sheer determination will get them there.

While a positive and determined mindset is a move in the right direction, it takes much more to achieve a state of financial freedom. To get closer to living the life you want, here’s what you need to know to become financially independent, according to a few experts.

What Is Financial Independence?

“Financial independence is the state of having enough money saved and invested to cover your living expenses for the rest of your life without having to work,” said Claire Hunsaker, a chartered financial consultant and CFO of AskFlossie.

“It doesn’t necessarily mean retiring in the lap of luxury. For most people, it means choosing how they want to spend their days, without the constraints of a 9-5 job. Many financially independent people still work part-time managing their investments or at a company they own that provides passive or semi-passive income.”

How To Become Financially Independent

The steps to become financially independent aren’t particularly complex, but they do take time and commitment to achieve. “The key is to remember financial independence is a long game — it doesn’t happen overnight,” said Steve Sexton, financial consultant and CEO of Sexton Advisory Group. Here are the steps to take.

Calculate Your Future Financial Needs

Knowing the amount of money you’ll need to become financially independent is key when working toward your goal.

“You can do this by multiplying your future income by 30 to set your savings goal, utilize a retirement calculator online to create a forecast, or enlist the help of a financial advisor to get a more accurate picture of what your future financial needs could look like,” said Sexton.

Evaluate Your Spending

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