When You Are on the Way Financially Independent
What is financial independence? And when will you know when you are on the way financially independent.? When I search “what is financial independence,” 57,400,000 Results are showing up. So, finance is a very hot topic. It is more likely people’s mind.
According to Wikipedia, Financial independence is the status of having enough income to pay one’s living expenses for the rest of one’s life without being employed or dependent on others. Income earned without having to work a job is commonly referred to as passive income. So in this sense, you don’t actually have to work. You are generating income without working.
Related Article – Wikipedia – Financial Independence
So how can you generate income without working? You can generate passive income in several ways, and you can keep financial independence by either accumulating assets or cutting down your expenses. However, in this blog post, I am not going to discuss how to achieve passive income; instead, I like to share your lifestyle and your mental stage when you are on the way to be financially independent. In my opinion, several facts make you proud when you are on the way to be financially independent. And of course, there is the pressure that comes with it depending on your circumstance.
Obviously, money is not everything in this world. However, money can bring some happiness. When I did a guest post on ellesunpopluaropinion site, what do we need to be happy? I talk about 4 ingredients need to make us happy, and one of them is finance.
Related Guest post collaboration – What Do We Need To Be Happy
In this post, I like to share three aspects of the life changes you feel when you are on the way to be financially independent. Those three are:
- Asset accumulation
- Emotional satisfaction and
- Social Class Status
On the Way to Be Financially Independent
Asset Accumulation
First, you will notice when you are on the way to be financially independent that you start accumulation things and buy things you like without worrying too much about how much it costs. I am also talking about not just accumulating; you are actually buying quality items. Of course, you are more likely to pay attention to finance, money, and investment.
Asset Accumulation
House – The largest asset in most of our cases is a house. So when you are financially independent, the first thing most of the time you look to get is a house. Of course, these days, there is an assumption that renting is an option instead of buying a house. However, still, you will see the more financially independent, you will see the bigger and the more modern house you will live in.
Car – If you live in a city like New York or London, where public transportation is good, you may not need a car; however, if you live in a city like Los Angeles, a car is an essential item you need to have. And you will see you are upgrading your car as you are financially independent.
Collectible Items – You are also more likely to start accumulating for the investment pieces, so you will buy things like art, piece of jewelry, or something unique that will be valuable.
Investment Accounts – You are also more likely to have an investment account (I am not counting your retirement account) and start accumulating stocks and mutual funds. I also think you start learning about investment and study ways to expand your investment. You may start reading investment journals and books to get better knowledge.
Books to read – The Psychology of Money, The Intelligent Investor, The Think and Grow Rich Workbook
Financial Independent – Emotional Satisfaction
When you are on the way to be financially independent, not only are you going to accumulate assets, but also you will have emotional satisfaction. For the feeling of you made it makes you proud of yourself. Now that you don’t have to worry about money, your lifestyle changes as well. Your lifestyle is better.
You are not as stressed as someone who needs to worry about money. On top of that, your work will be much more enjoyable whatever you do because you don’t have to depend on that work. You are more generous to others because you can afford things that come with tremendous satisfaction. You can explore and travel more. As you explore more and travel more, you start building emotional memory banks that give you certain satisfaction and pride.
As your emotional satisfaction increases and you can explore more things and be surprised, you will start thinking about yourself and others. The more you are financially secure, the more you start being generous. You feel you can leave a better tip, and you feel you can help some people who need help.
You see most of the wealth individual starts creating nonprofit organizations or start donating organization with causes. Once you are secure your own, you can think about a bigger picture, like make the world a better place.
Social Class Status
When you are on the way to be financially independent, your social class status improves as well. Social class refers to a group of people with similar levels of wealth, influence, and status. In society, the financially affluent gives the image of a successful person. Being successful puts you on a different level. Of course, you can access things much easily and conveniently. Your circle of people is more likely affluent. There is only 1-3 percentage of people belong to the wealthy class.
Related Reading – Types of Social Classes
Once you start making friends with wealthy people, you can learn and have an opportunity to go into the business or access information that puts you in a better position.
Basically, as people hang out at the same level of social class status as you are on the way to be financially independent, you are making or easily accessible where the same level of financially independent people, therefore your social class status goes along with it.
Conclusion
When you are on the way to being financially independent, your lifestyle changes due to access better information and making acquaintance with successful people. Basically, money makes money works.
You will accumulate assets and not have to worry about financially, putting you in a different mindset. More things available for you, and you will be able to access them easily. As you will be able to explore more things, your opinion and the way see the life point of view will change in more positive ways. With your emotional satisfaction and no longer has to worry about finance, you will explore more and start thinking about making the world a better place to live.
Obviously, when you are financially stable and independent, your social status will change as well. In current modern society, success defines how wealthy you are in some cases. Therefore, being well-off financially means that you are considered successful. Being successful put you in high social status that allows people to look up to in some cases. Thus make your life more enjoyable and happy.
I am a Los Angeles-based lifestyle and fashion blogger. If you like to find out more about me, here it is. Also, please follow me on my social media channels. I am on Instagram, Pinterest, and Twitter.
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