Can anyone become ‘financially independent’? What does it mean?
The short answer is ‘yes’ – for some people.
There are some individuals who are driven by ambition and goals and want to accumulate wealth. Many of them succeed because they are willing to pay any price to realize their desire. Others are fortunate to be born into money (sperm fortune) or meet someone that they lean quickly from.
The long answer is ‘it depends’ - for most others.
The list of ‘if’s is endless.
…are born into a family with good money habits.
… they get a tertiary education or a trade in demand.
… they earn enough.
… if they save enough.
… if they control spending desires.
… if they have good personal relationships.
… if they take the right risks.
… if they avoid unnecessary debt.
… and so on.
For many, it is if they meet the right ‘role model’ or mentor, when it comes to money habits. One way to meet them is to seek them out, and /or read personal finance books, listen to podcasts by successful people who started with nothing and became wealthy SLOWLY.
The most important things I believe are:
- Determine what financial independence is for you. My definition is “the ability to meet all your financial needs without relying on a job, a business or a government”. In ‘Meet the Frugalwoods’ author Elizabeth Willard Thames defines it as ‘when a sustainable rate of withdrawal from our assets comfortably exceeded our conservative living expenses.
- Learn about behavioural economics - aka behavioural science. This is about understanding what makes us do (or not do) things that affect, for good or bad, for our economic well-being. Understanding what is holding us back will help us move forward.
- If you are still confused about money, invest a little money in worthwhile advice from a money coach or mentor that will benefit you for life.
- Join groups that share your desire to be free of money concerns – the FIRE (Financial Independence Retire Early)
P.S. I'm starting a new Mechanics of Money (MOM) group cohort next month. If you want to get a better handle or your money or wealth accumulation and be part of developing something new this may be the group for you.
If you already have a financial plan, you are already ahead of the game. I can show you ways to improve your money habits and avoid pitfalls.
I am looking for 5-7 hardworking self-employed entrepreneurs, contractors, or professionals to coach through my Mechanics of Money System.
If that’s you, and you’re ready to use money better so you can have more time, money, freedom doing exactly what you love then reply to this email with the word MOM2023 in the subject line and I’ll send you the details.
P.P.S. For reading/listening recommendations join our Facebook Group here https://www.facebook.com/groups/803911377549327