Financial independence early retirement. what’s the steps

Financial independence early retirement is not something that comes from sitting in traffic on the way to work or the presentations to the boss, financial independence means letting your money work for you!

Is financial independence early retirement a fairy tale? A myth? A cliche? A lot of people nowadays think that things are actually like that when in reality they need to think about how to walk this path instead of giving it a mythical status. How to measure such independence and most importantly is how to get there. This article is going to deal with the subject that COVID-19 made very important. In a world with tech dysfunction and distraction, even long after COVID- 19 is gone and no longer an issue life brings with it challenges and Crysis may come.

The definition for “financial independence” is elusive, individual, and not obvious, for some it means more income than expenses for some it’s a number like a positive balance in the bank of $1M.

How do we define financial independence in early retirement?

We decided to look at the definition from two angles numerical and verbal combined to make it something practically achievable. We will strive to make a passive income that makes us more than our expected monthly expenses. If not for a financially independent life we lose ourselves again, looking for income. Thus far we dealt with the verbal definition of “financial independence” now we need to deal with the numerical issue of how much? We need to set a sum that is reasonable on one side and dreamable on the other. So we have a definition and a sum now how to make it grow with time? if we want financial independence early retirement.

1-Calculating house expenses

The first step is to calculate the household expenses for the last two years- mortgage, rent, food, electricity, loans, fuel insurance, etc… From the 24 monthly expenses conclusion we will get a clear average, For example, let’s say this average is 25K, on top of that amount let’s load another 30% just so we are prepared for whatever life is planning to throw at us and so we don’t have to live from the hand to the mouth. 30% of 25k is 7.5k, also to feel better about the calculation we let’s round it up to 35k. At that point, we can confidently say that if we make a passive income of 35k we can make our life status much less dependent on others and much more liberated.

So did we achieve economic independence for our family cell?

Theoretically yes. We would want that amount to grow all the time because 35k today will not be worth 35k in ten years. We will soon see how this number grows itself out.

2-Examining the selected amount

So, at this point, we can say we want to make 35k on top of 25k expense so the extra 10k is not a quantum jump. Is 35k enough to stay above water? As it seems… yes since we are looking at a different strategy for making the money than what we used to. This “out of nowhere” amount is not going to come from hard work hours in traffic or presentations to the boss. This amount of money is to come from an investment of money that needs to create a monthly income of 35k. To understand this we need to think a little bigger…

So we defined how much passive income we need to make to start a financially free life. now we need to set a target date we wish to achieve financial independence early retirement before.

3. how much money do I need to invest to make a passive income?

Nowadays we have a lot of investment options and to make a profit, we need to choose the best way that suits us most. The market of digital assets has proven in the last several years to be the most profitable field of investment. There are infinite ways to make money online whether from your online dropshipping store or content websites or just affiliation it doesn’t matter because the real estate of today is all digital and there are a lot of ways you can use your time to build an online infrastructure that leads back to you making money.

If it all sounds complicated and hard to do then know it isn’t, you can learn how to edit pictures and sell them on stock websites for people to buy the rights for the picture, etc…

In conclusion, to start living an independent life, we need to change the way we think, the time management and mostly make sure we invest our time/money into a profitable asset and build ourselves an online real estate empire.

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