Financial Independence

Financial independence is when work is optional. Some think of it as retirement. It is when you don't need to work a job unless you want to work. When thinking about financial independence, some things you need to think about include:

1. How much do you need to live the life you want? Is this amount after you have paid taxes or is it including paying taxes. It is important to make sure you account for taxes.

2. Do you have any sources of income once you stop working? Some examples would include social security, pension, interest, dividends, etc. Are these sources of income before-tax or after-tax?

3. How much do you have saved to help live the life you want once you stop working? Make sure you account for taxes as well if need be.

4. How much do you expect your investments to grow each year?

5. How much do you expect inflation to grow each year?

6. How much do you expect your spending needs to change each year?

7. How will you spend your time if you aren't working? Make sure these activities are fulfilling for you.

Thinking through all the financial items and about how you envision living your life after you are not working full-time can be a lot to handle and think through. If you want a 2nd set of ears and eyes, feel free to reach out to us at team@cashflowisthecore.com.