The idea of financial independence is relatively simple. If you have enough money to cover your expenses for the rest of your life, you are financially independent. Of course, this would require an immense amount of money – large multiples more than what many people will ever make in their lifetime. However, it’s not impossible to achieve some level of FI. Being financially independent {Økonomisk uavhengig} is a great way to get more freedom in your life.
Once you are FI, you no longer need to work for someone else. So instead of working 40+ hours a week at your job or business, you can spend more time with family and friends. Or maybe even take some time off altogether? Some people like the idea, while others think it’s scary (how would they pay their bills?), but that shouldn’t stop them from saving for FI.
Different Methods of being financially independent:
People use a few different methods to save money and become financially independent, but the most common method is investing in stocks, bonds, index funds, or real estate. These are all great investments that have been proven time and again to work well over long periods. The stock market has historically returned about ~+-11% annually. This is an excellent rate of return if you are patient and can wait out some bumps in the road (which there will be).
Investing in real estate is a great way to build long-term wealth. This includes purchasing homes and apartment buildings and other investments such as commercial, vacation, or raw land. There are many ways you can invest in real estate, and people interested in FI need to do their homework before jumping into any one type of investment.
In conclusion, it’s possible to become financially independent. There are numerous ways you can do so but investing in the stock market is one of the simplest and most effective methods.
