Financial Independence Indicators

[Suba]

Financial independence is the sixth of seven levels of financial freedom. Someone who has achieved financial independence can finance all their needs from their passive income, so their active income is always allocated to investment instruments. Financial independence is often reflected in their wealth, such as owning their own home, car, and other valuables.

It normally takes a long time for someone to achieve financial independence, so it's best to build financial freedom early, or once they're able to earn money.

There are several indicators that someone can be categorized as having achieved financial independence, such as:
1. Being able to meet all needs from passive income/side hustle.
2. Owning valuable assets such as property, a large investment portfolio, etc.
3. Not worrying about money because all their monthly needs can be met with passive income.

 

[Springtime]

I think some of the indicators include having enough assets and income streams to cover living expenses without relying on employment, debt free, having a sustainable passive income, and having strong savings and investments.

 

[Starmix]

Having a passive income from real estate, stocks trading, and building rentals can assure the person to live on financial freedom and independence. It's the money that work for them, and not they to work hard for the money.

 

[neku]

At present it is very difficult for domain investors to make money online, get passive income, since parking income has reduced, though income from other sources remains the same.

 

[aninditasen]

Financial independence is the sixth of seven levels of financial freedom. Someone who has achieved financial independence can finance all their needs from their passive income, so their active income is always allocated to investment instruments. Financial independence is often reflected in their wealth, such as owning their own home, car, and other valuables.

It normally takes a long time for someone to achieve financial independence, so it's best to build financial freedom early, or once they're able to earn money.

There are several indicators that someone can be categorized as having achieved financial independence, such as:
1. Being able to meet all needs from passive income/side hustle.
2. Owning valuable assets such as property, a large investment portfolio, etc.
3. Not worrying about money because all their monthly needs can be met with passive income.

For complete financial independence you need to do a well paid job or a good business. I don't think you can be financially independent through passive income.

 

[Suba]

For complete financial independence you need to do a well paid job or a good business. I don't think you can be financially independent through passive income.

You're right. Those who have achieved financial independence initially had a good income, lived frugally, and invested. Of course, it took a significant amount of time.

 

[Stardom22]

When one can meet all the bills with the side Hustles life becomes stress-free. With that being said one can live peacefully in the world for sure.

 

[aninditasen]

You're right. Those who have achieved financial independence initially had a good income, lived frugally, and invested. Of course, it took a significant amount of time.

Yes, becoming financially independent takes time for most people.