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How well does your financial situation match up?
To be financially independent means you have your own sh*t. You’re not reliant on anyone else to provide for you, and you’re flourishing financially.
Here below, you will find ten examples of what financial independence looks like. As you read, count how many of the items from the list below you can check off:
10 Examples Of Financial Independence
1. You Don’t HAVE To Live With Other People
You don’t have to live with family or have roommates because you can afford to live in your home without the help of someone else.
2. You Carry Little To No Debt
You carry no debt or little debt, which means you are not overwhelmed and are financially wiped out every month by minimum monthly debt repayments.
3. You Have A 1 Year Emergency Fund
You maintain a one-year emergency fund (or a minimum of six months) that covers your monthly expenses.
In case you ever lose an income source, you do not have to scramble to scavenge for resources, borrow money, or accept the first job offer you receive that will end up being a job you hate.
4. You Are Responsible With Credit Cards
You maintain 1–3 active credit cards, pay the monthly balances each month, and don’t charge more than you can afford.
If you know how to manage your money successfully, there is no reason you shouldn’t be using a credit card. They are safer and earn you endless reward opportunities.
5. You Spend Less Than You Earn
You live below your means because you respect your money, time, and mental peace. It doesn’t make sense to overspend because you know that will only lead to the acquisition of two things: debt and stress.
6. You Have Active Entrepreneurial Ventures
You seek non-traditional income sources. Instead of relying on a traditional job for income, you build, explore, and experiment with different side hustles. You’re constantly adding new income streams that diversify your monthly revenue.
7. You’re Not Putting On A Show
You don’t try to be something you aren’t. Too many people are trying to appear like millionaires and billionaires but are far from hitting these milestones. Is it possible for people to hit these milestones? Yes, but their habits and mindset would need to change significantly.
8. You’re Not Seeking A Financial Savior
You’re not looking for a savior. I frequently come across people who hate or dislike working. They don’t want to do anything except relax, watch tv, and casually pursue their entrepreneurial dreams while someone else funds their life.
One of my closest friends dated someone like this. When you’re financially independent, you don’t seek someone to save you from a job you hate.
You create your ideal reality by pursuing your goals fervently to create the financial outcome you desire.
9. You Know How To Manage Money
You know how to manage your money. What does managing your money look like? You know how much money comes in, and you know how much money goes out. You have clear financial goals that you’re consistently working toward. You spend less than you earn.
10. You’re Not Financially Dependent On Others
This could include family or roommates from example number 1, or this could include an employer, friends, or any other type of relationship.
A financially independent person does not rely on anyone to provide for them; they are
Let’s Wrap It Up
Congratulations, you are financially independent if you check off these boxes. If you struggled to check off just a few boxes, congratulations; now you know different actions you can take to change your financial circumstances. And if you could check off at least half of the boxes, congratulations; you are on the path.
Wherever you are financially doesn’t matter as much as where you will be and can be after you implement the knowledge you acquire.
10 Examples of Financial Independence
1. You Don’t HAVE To Live With Other People
2. You Carry Little To No Debt
3. You Have A 1 Year Emergency Fund
4. You Are Responsible With Credit Cards
5. You Spend Less Than You Earn
6. You Have Active Entrepreneurial Ventures
7. You’re Not Putting On A Show
8. You’re Not Seeking A Financial Savior
9. You Know How To Manage Money
10. You’re Not Financially Dependent On Others
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.