What is Financial Independence?

When an individual prepares for retirement they may not realise it but they are actually getting ready for an important event.

This event forms the corner stone of all financial plans for those of us still in gainful employment.  The event is financial independence.

Financial independence is the point in your life when you no longer need to work to receive the income you require to live your chosen lifestyle.

There are two important points here.

Firstly financial independence is the point at which continuing to work is a lifestyle choice. The notion of finishing work on a Friday and beginning retirement on the following Monday is unsettling for some. Plenty of people enjoy their job and would not like to give it up completely, preferring instead to wind down gradually with part time roles or consultancy work to “keep their hand in”.

The second point is that it should be your chosen lifestyle.  The one that you actually want to live not the one you are forced to live because of income constraints.  This is an important point. Many retirees are forced into a lower standard of living than they would like.  This is because they didn’t plan their finances to enable them to support their desired retirement lifestyle.

The simple fact is the sooner you start planning for your financial independence the more chance you’ve got of achieving your goals.  Don’t think of retirement as a finish line or a target. Retirement is the beginning of a potentially very exciting journey, not a destination.

If you would like to discuss your plans for a financially secure retirement, then call us today on 01666 861194. We would be delighted to help you understand what you want your  future to look like, and to help you achieve it.