Financial Independence

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As a nepali what are your views on financial independence? Me personally, I define financial independence as:
1. Spending less than I earn
2. Avoiding buying stuff with money I don't have. No Debt
3. 12 month emergency fund
4. 401k, IRA etc max out
5. Retire by the age of 40

GeetMaiJawaafDiu?

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A financial goal is different from financial independence. Your point #5 sounds like financial independence. The rest are short or long term financial goals.

My understanding of "financial independence" is that you have enough income to cover your living expenses whether you work or not [irrespective of nationality, Nepali, in your case]. Financial independence does not necessarily mean no debt. Surprising, right? I know.

Being financially free can be achieved at any age. It usually is at any age above 21.

ujl

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A simple equation:

Financial Independence (FI) = [Mind (M) - Capital (K)] / Life (L)

or, FI = (M - K)/L

or, FI * L = M - K ( Explanation: When Life is multiplied with financial freedom, it is equal to a mind which is free from all kinds desires related to wealth)

fi_nepali

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Agreed that Points 1 to 4 are financial goals. However, I think those goals make it easier to achieve financial independence. I disagree regarding debt, but i think everyone defines independence differently. .

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