Definition of Financially independent
Financially independent is an idea that means something different to everyone. For some people, it is being able to buy a house or deliver your children to college.
Brief Explanation of Financially independent
To the other people, it is actually getting out of debt. To me, you are financially independent when you have sufficient sources to protect all of your current and upcoming costs. It provides any one-time or non-recurring costs, such as travel, knowledge or non-profit providing objectives. It provides your primary requirements and way of life costs, as well as optional and high-class costs. You have to also account for rising prices and possible upcoming costs such as medical proper care or long-term proper care costs. To put it another way, it is when you have enough cash and earnings that you can live the life that you want without ever having to work to make extra cash to protect these costs. Most often, we think of this as retirement living, which typically happens in your mid-sixties when a mixture of Social Security, retirement living earnings, and retirement living benefits allows you to perfectly keep the employees.