3 Ways to Achieve Financial Independence

There are only 3 ways to achieve financial independence

BUT before we get into those 3 ways, let’s first define financial independence.

Financial independence is independence from having to engage in active income. It means you have enough wealth and passive income to live without actively working.

Here are the 3 ways to achieve this:


    Investing is the easiest way to become financially independent in that it takes the least amount of direct effort. The catch is that you need enough capital so that your returns cover your lifestyle expenses. Let’s say you spend $5000 a month. That means you would need over half a million dollars, making a consistent 10% return annually in order to reach financial independence. Now, if you don’t have half a million dollars right now, that doesn’t mean that investing isn’t a viable option for you. The 10/10/20 rule states that if you invest 10% of your income into a portfolio (i.e – S&P 500) that makes 10% a year, for the next 20 years, you will reach financial independence. Not a bad option considering most people work for 40+ years before they retire only to downgrade their lifestyle. Also keep in mind that you can shorten that time by increasing the amount of income you put in without increasing your lifestyle expenses.


    Speculating or trading is essentially managing your own investments. Once you have the knowledge and skills of how to do this, you have a lot more control over how much you make. And your annual return will be much higher on average than traditional investing. Let’s stick with the example of needing $5000 a month to live. If you’re making just 2% a month (which is on the low end of the average) then you only need a $250,000 account – half what you would need if traditionally investing. Let’s say your return is a healthy 5% a month, then you would only need a $100,000 account. If this is something you’re interested in, I would highly recommend learning FOREX trading from Infinite Prosperity. The first 2 lessons are free, which will allow you to gauge if it’s really for you at zero risk.


    Selling a product or service is another way to become financially independent. There’s a lot of upfront work but the idea is to set your business up so that it can run without you. Once you do that, the money will flow in without you having to do anything (unless you want to, of course).

The best option, in my opinion, is do engage in all three, but not all at once. Start with one at a time and build your passive income portfolio to have multiple streams of income.


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