How to become financially independent

arshad5 · Jul 17th, 2008, 06:22 PM

Out of 100 youngsters why would only about 8 of them achieve financial independence by the age of 65.

What is the difference beween these 8 and the other 92? Obviosly money but besides that?

arshad5 · Jul 17th, 2008, 06:37 PM

Ok if you are reading this then you are more likely to be within that 8 as opposed to the 92.

NaziJoon · Jul 17th, 2008, 06:40 PM

Maybe they know how to do the math! hehe

arshad5 · Jul 17th, 2008, 06:45 PM

Hehe maybe

Well the first thing is desire to discover how to make a fortune.

So what sorts of things stop people from becoming financially independent?

psyah · Jul 17th, 2008, 08:46 PM

Peace

Complacency in job security (Finanically independent people have businesses, most people don't think of starting up their own businesses)

Risk aversion in people stop them making potential gains

Schooling - most people conform to the product engineering of schools and become consumers and cogs in the wheel of capitalism thus having constrained thought processes

Family - People around can prevent this happening demanding time and attention

(You might need to factor out some of those hundred who die before 65 years)

Money - Money itself can be a cause for stunting financial independence. If we have money coming in then we are not in need and no need demands no action.

Values - some people do not want or have ever thought as that as a goal for them

ehtasab · Jul 17th, 2008, 08:49 PM

What does "financial independence" really mean? Lets define that first.

ehsan · Jul 18th, 2008, 03:30 PM

Where did the stat come from? I would think that 65 is bit late, if the person wants to enjoy his/her financial independence than maybe late 30's early 40 at the latest.

arshad5 · Jul 18th, 2008, 04:15 PM

Good points Psyah.

Financial independence is the ability to lead a comfortable lifestyle without having to work, or to even trade down or live in a emerging economy.

The stats are for illustration purposes only although they will be somewhere in those regions. The age of 65 is also for illustration purpose, one should start to enjoy his/her life as soon as one can.

ehtasab · Jul 18th, 2008, 07:03 PM

Quote:

Originally Posted by arshad5

Good points Psyah.

Financial independence is the ability to lead a comfortable lifestyle without having to work, or to even trade down or live in a emerging economy.

The stats are for illustration purposes only although they will be somewhere in those regions. The age of 65 is also for illustration purpose, one should start to enjoy his/her life as soon as one can.

If that is the definition then atleast "employed" people can't be financially independent until their kids are out of school/start working, that means I am not financially independent

ehsan · Jul 18th, 2008, 07:11 PM

Financial independence doesnt necessarily mean lifestyle without working, you can have financial independence even when working, a debt free life and have enough money to lead an enjoyable life while working, especially if you are working for yourself.

SindSagar · Jul 18th, 2008, 07:47 PM

Quote:

Originally Posted by ehtasab

What does "financial independence" really mean? Lets define that first.

Living within ones means is always a good practice and can lead to financial independence............................wich in turn leads to better health.

Even the Medical Profession acknowledges that now......check out Dr. Michael Roizen, a top anti-aging expert

Niksik · Jul 18th, 2008, 07:49 PM

I heard a quote once that the difference between financially independent people and those who are not is what they do in their spare time... which boils down to your association, habits and choices.

Dushwari · Jul 18th, 2008, 10:50 PM

careful life style or lack thereof, intrinsic motivation's level, dedication to being hard working or not, life situations which could be totally unforgiveable to an otherwise, very nice, caring, responsible and mature person.

but, money is never ever anything by itself.

arshad5 · Jul 20th, 2008, 10:39 AM

In any field if you want to become the best then you have to have the desire to learn and master that field and that is also the case with being financially independent. Having a genuine interest in the subject does help. You can define financial independence in many different ways. However you define it it, society will always be a pyramid shaped when it comes to finance.

raza110 · Jul 20th, 2008, 01:54 PM

penny save is penny earned.

arshad5 · Jul 25th, 2008, 04:37 PM

True Raza. However some people can also be pennywise and pound foolish!