Definition
The state of having enough income, savings, and investments to cover your living expenses without having to work actively. It’s about living life on your terms.
What to consider
- Think of it as having enough resources to live comfortably without working full time.
- Focus on reducing debt and building savings.
- Small, consistent steps can lead to long-term independence.
Real world scenarios
- After years of careful saving, Quinn reaches a point where passive income covers living expenses, granting true financial freedom.
- Eva interprets financial freedom as having an emergency fund and no consumer debt, letting her pursue hobbies instead of extra side jobs.
- Following a disciplined plan, Sean invests steadily until he no longer relies on a conventional 9-to-5 for income.
Related terms
Related Playbooks
Get instant access to all our expert playbooks and 1-1 financial coaching when you join the Bolder Money community. Learn more here.
Investments & Retirement
Investment Strategy Guide
Investments & Retirement
The Ultimate Guide to Finding Lost Retirement Accounts: Recover Your Missing Money
Investments & Retirement
Retirement Planning Guide
