Financial Independence

In honor of the holiday weekend we are taking this week to think about financial independence and what it means to you. We asked some of our staff and clients what it means to them:

Not relying on your parents. The ability to purchase a house. Money for investments.

LIVING DEBT-FREE

Financial Independence is not having to worry. Living debt-free, and worry-free that when the bills pour in and emergencies arise, you are financially equipped to overcome. While some debts are necessary, it is the frivolous and unplanned debt, such as credit cards, that can cause undue stress. This type of debt can be difficult to pay off and the payments may not fit into your financial plan when left unaddressed. Eliminating credit card debt is just a step towards declaring your financial independence.

SAVING FOR RETIREMENT

Nothing will earn your independence faster than investing into your retirement savings, but your savings can also be affected by the information you don't know. Taking an active role in understanding the structure, goals, and returns of your investments will go a long way in achieving your desired outcomes. If you are a financial client with us, be sure to take advantage of your Annual Financial Review and be proactive in achieving your financial independence. Need to make extra money to contribute to your savings? A low-stress, part-time job can be a great way to make new friends, learn new skills, and spend a portion of your working time doing something that you really enjoy.  

LIVE SIMPLER & WORK (OR NOT)

A key step towards financial independence. Every day we are bombarded with ads making us believe we need to spend, spend, spend to be happy. This is a lie. That's one reason credit card debt is epidemic, why 3/4 of Americans live paycheck-to-paycheck, and why so many of us are stressed about money. Take a step back and really ask yourself if you need the thing, or if you want it.

Former financial advisor Scott Hanson's advice? Rather than save for retirement, save to the point where you have the freedom to retire or not retire. View your retirement savings not as your ticket to a life of luxury but, rather, as a vehicle that allows you to do those activities that you value most. This may likely be work and not retirement. Whatever your view of retirement is, one thing is for certain: It's important to save for the future, regardless of whether you ever want to retire or not.

Because, when there's money in the bank, you don't worry about job security, and you worry less about emergencies, which makes it easier to save for retirement, and you'll probably sleep better too. This is Financial Independence.