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As we approach the Fourth of July, Corinthian Wealth Management joins the nation in celebrating our independence. This holiday reminds us that freedom is worth the effort.
While we commemorate the adoption of the Declaration of Independence, we invite you
to consider another form of liberty: financial independence. Just as our forefathers embarked on a journey of self-determination, we believe everyone should have the opportunity to chart their financial path. Independence isn't just a destination but a journey. In this spirit, let's explore how the principles that founded our nation can apply to your financial future, empowering you to break free from financial constraints and enjoy the freedom that comes with it. Let's embark on this journey together, from celebrating Independence Day to becoming financially independent.
Nowadays, we are lucky to enjoy peace, but being independent has always been essential in our lives. Financial Independence is also a freedom. How do you achieve your goal of being independent financially?
Financial Independence might be different for everyone.
A common definition of financial independence is having enough wealth to live comfortably without needing to work or rely on others for support. Financial independence can mean different things to different people. A young adult can be financially independent when they move out of their parent's house and start paying all the bills, or an individual who follows FIRE (Financial Independence, Retire Early) can live off passive income with the ability to retire early.
In a recent Empower poll of 2,000 U.S. adults, spenders and savers say financial freedom is synonymous with resilience and independence (1):
Not needing money from family and friends (47%).
Reaching a particular net worth (44%).
Contributing to a 401(k) (42%).
How to achieve Financial Independence
Financial Independence is often associated with saving and retirement. The journey begins by defining what financial Independence means to you personally. From there, you can create a plan that best suits your needs. Here are some habits you could consider changing to achieve your goal of financial independence.
Break the cycle of living paycheck to paycheck
Let's start with income and expenses. Determine what is your income and basic needs. Then, reduce unnecessary spending, give yourself a budget, and stick to it. Saving is a key factor in building up your wealth over time.
Working on your debts
Too much debt can create significant pressure in your life. Slowly paying off your debts, such as credit card debts, auto loans, or personal loans, is a good step toward restructuring your personal balance sheet.
Detailed planning
Consider working with a financial planner, creating a financial plan, and setting specific goals to better understand your goals for achieving financial independence.
Start investing for retirement as soon as you can:
Take advantage of your retirement plan at work first (if your employer offers one), and try to contribute enough to get the maximum employer match, as this is free money added to your retirement savings. Retirement accounts are tax-advantaged vehicles that offer benefits to support your retirement. Some employers offer a Roth 401k option, which offers tax-free distributions when you reach certain ages.
As we celebrate Independence Day, let's consider our journey towards financial independence. At Corinthian Wealth Management, we understand this path is unique for each individual. Financial freedom isn't just about numbers; it's about choices and living life on your terms.
This Fourth of July, take a moment to
reflect on your financial goals. Whether you're just starting out or well on your way, we're here to help you develop a strategy that meets your needs.
True independence includes financial security. Let's work together to make your financial independence a reality. From all of us at Corinthian Wealth Management, happy Fourth of July, and here's to your financial freedom.
Sources:
(1) editors, T. C., & The Currency editors Staff contributors The CurrencyTM. (n.d.). Making it: How Americans feel about financial Independence. Empower. https://www.empower.com/the-currency/money/research-financial-independence
Carosa, C. (2023, July 18).The point you become financially independent. Forbes. https://www.forbes.com/sites/chriscarosa/2023/07/14/the-point-you-become-financially-independent/
McNair, K. (2024, January 23). Most Americans want to be financially independent-here's how much money it will take. CNBC. https://www.cnbc.com/2024/01/23/how-much-money-americans-need-to-earn-to-be-financially-independent.html
Achieve financial Independence. How to Achieve Financial Independence | TD Bank. (n.d.).https://www.td.com/us/en/personal-banking/finance/achieve-financial-independence