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How to Define and Plan for Financial Freedom
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why. Many personal finance experts will tell you to take your current monthly expenses, add 4% to the overall number for inflation, and then multiply that by 25 or 30 in order to reach your financial independence goal.
That can be a useful exercise, but it still leaves us with an abstract number we can’t apply to our actual lives. Using the visualization technique gives you a feel of what you’re working toward, instead of an amount pulled from someone else’s experience or your own vague notion of financial independence should look like.
Once you know where you’re going, it’s time to determine the concrete steps that will help you get there. Looking back at your day in the life image, think about the city or state you were living in, the.
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