Financial IndependenceMyCFO Blog | MyCFO Blog

Financial Independence

financial-independanceFor most people, it’s kind of hard to consider retiring in their 40s, but not for our accountant here – we’ll call him John.

John worked a nicely paid accounting job in a nice city. Some 10 years into the job, things began going south in the company and it had to be abruptly shut down. John is 45, not exactly the most thrilling phase of life. He weighed out his options and made the most brilliant decision of his life to retire. An ardent saver, John made a careful breakdown of his expenses and incomes, including his wife’s full-time job that covered a major part of their income. He moved to a more economical living space, reconsidered his expenses, switched grocery stores, reduced the internet and found no difference and made all the other necessary steps. John is now a happy man with a happy life and is proud of his decision to quit working, he doesn’t even worry a bit about overspending. John is independent.

The common knowledge is that higher income means wealth but actually, it’s spending less than you make, in various degrees. When you consider your own income and expenditure, you may find that you already have little investments you can count on. You should first master the psychological fears of living financially independent. A person pursuing financial independence can save up to 80% of their net income. It is a natural way to develop good financial habits. It’s like finally finding your feet but it’s not an overnight feat.

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