WHAT IS FINANCIAL INDEPENDENCE?
Financial Independence (FI) is when you generate sufficient cash flow to support your chosen lifestyle without depending on employment. The faster you reach FI, the more time you have to do what you want with your life. You can work as much or as little as you want. Either way, you will no longer need to grind to pay the bills and can retire from it all. In the FI community, we call this achieving Financial Independence and Retiring Early (FIRE).
THE RETIRING EARLY PART
I discovered the “retire early” component of FIRE is a big topic of controversy. This is because many people who have quit their 9 to 5 job continue to do other things such as open up a business, start a blog, or find other work more so for enjoyment rather than money.
In any case, the more important thing to consider here is what you will retire to?
FIRE WILL MAKE YOU RICH, BUT IN MORE WAYS THAN ONE
FI it is not only about accumulating enough money to never need to rely on another paycheck. It is about greater freedom in how we spend our time and energy to do the things that really matter to you. Our list is below:
- More time with friends and family: We will be able to eliminate work related commitments that have interfered with spending irreplaceable time with loved ones.
- More time to explore the world: We have places we want to go and things we want to see. It would be great to have the option to travel for longer than 1-2 weeks, if desired, without having to rely on our employer’s approval.
- More time to exercise and improve our overall health: Working out is my absolute favorite pastime and Mrs. Flexcents recent joined in on the fun. Plus, healthy habits will allow us to live a longer more active life while spending less on healthcare. I can certainly see us spending even more time in the gym than we already do once we reach our FI.
- More time to read, write, learn and grow: Not only do we strive to upgrade our bodies, but also our minds. It feels like we gain a new superpower with each book that we read. When we are free from the 40+ hour work week, we will have more time to acquire more superpowers. My current goal is to read 1 book per month.
- More time to discover and pursue other passions: We believe most people have multiple passions that become dampened by the daily grind. While we do our best to pursue our interests in photography, fitness, drawing, reading, blogging and exploring various side-hustles, we cannot ignore the fact that we pour the majority of our time and energy to our jobs. A great benefit of financial independence is that it provides us with more control of where we want to allocate our time.