Learning how to achieve financial independence is a goal for many people, but it can be a challenging process . After all, this concept encompasses knowledge and techniques that go beyond saving enough money for a single purpose.
Independence is a state where an individual’s financial situation provides security and freedom in decision-making, excluding any limitations imposed by money.
According to data from a recent survey by Serasa , only 35% of those interviewed believe they have achieved financial independence .
Although it may seem like a distant reality, with planning, strategic thinking and smart decisions , it is possible to achieve this goal. In the following lines, we will explore more about ways to achieve financial independence , continue reading.
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What is financial independence?
Financial independence is the possibility of poland whatsapp number data one’s own lifestyle without having to use conventional labor on a daily basis . In other words, the individual survives on the assets built up over time.
Although it is a term to describe the possibility of leaving your parents’ home, having a steady job and being able to cover your monthly expenses , the concept goes deeper.
Independence is achieved by building up assets and earning passive income from them. These assets can be accumulated over a period of time , the purchase of real estate or other investments.
In many cases, this term can be replaced by “autonomy” or financial “freedom .” However, it is important to emphasize that all concepts are different and encompass stages to achieve financial independence.
What is the difference between autonomy, freedom and financial independence?
Although the three terms are related , they do not have the continuous innovation and optimization meaning . They can as distinct but necessary stages to achieve the final goal: financial independence.
It is important to understand the nomenclature and use of terms . This will help you identify which stage of the process of achieving financial independence you are at . In addition, you can outline strategies to evolve, using tools such as the action plan template to organize the next steps.
Financial autonomy
Financial autonomy is the first europe email of the process of becoming aware of the need to be more organized, save money and achieve other goals.
The moment of autonomy is when it is possible to support oneself with one’s own money . Thus, the individual becomes responsible for his/her own expenses and organizes spending, already saving a small percentage for the emergency fund .