Financial independence is something we all like the sound of, but not many of us know much about how to truly attain it. That’s why International Financial Independence Awareness Day has come along to change all that. It’s about sharing the simple rules that can lead to greater financial independence and maybe change your life for the better.
Financial Independence Awareness Day is about finding ways to achieve financial independence and sharing information relating to that goal. But what is financial independence in simple terms? In short, it’s about reaching a point where you’re generating enough income from assets to cover all your living expenses.
When you reach that point, you will no longer be reliant on earning a paycheck by going to the office and working for someone else each day. Therefore, you’ll have attained financial independence. Once you’re financially independent, all kinds of new opportunities open up and this day is about celebrating that and helping people reach that point in their lives.
There are 2 rules associated with Financial Independence Awareness Day: the Rule of 25 and the 4% Rule. The Rule of 25 helps you to plan for the future by helping you to define how much money you’ll need to have saved for retirement, which is 25 times your annual expenses. The 4% Rule is about determining how much of a stock portfolio you can spend in a year and not run out of money.
History of Financial Independence Awareness Day
2019 is the first year of Financial Independence Awareness Day, so the history of this day is relatively short. It was set up by people who know the power of financial independence and how it can change lives. They have a desire to share those secrets and make financial independence a realistic goal for more people. The day brings together the 2 key rules discussed above and helps inform more people of their power.
How to Celebrate Financial Independence Awareness Day
If you want to celebrate Financial Independence Awareness Day properly, you should think about your own financial situation and what you can do to plan for the future and become more financially independent. Do this by considering how you can apply the Rule of 25 and the 4% Rule to your situation. You might discover things and begin to implement changes that you never thought possible before.
The day is also about passing on information and sharing it with others, so it makes sense to have discussions about these things with the people closest to you. You could all benefit from it in the long-term. They might not know about things like the rules we discussed above, but that doesn’t mean they can’t benefit from them if they begin to use them in their lives too.
So, why not learn about and share ideas relating to financial independence this International Financial Independence Awareness Day? Doing so could lead you one step closer to the point at which you don’t have to work for a paycheck any longer.