Benefits of Financial Independence

What is Financial Independence?

Financial independence is probably one of the best ways to improve your life. In addition to the most obvious benefit of not having to work anymore, financial independence has many other beneficial side effects. Before we get into them, let’s get on the same page of what it means to be financially independent.

Financial independence is making enough passive income to pay for living expenses”.

I Don’t Want to Quit

You do not need to quit your job when you reach FI. Many people enjoy the work they do, and I am included in that population. It does mean if your job stops being pleasant and fulfilling, then you don’t need to desperately cling to your job to pay your living expenses. This is often referred to as having F-you money.



Financial independence removes the temptation to compromise your integrity to keep a job. It frees you to do only what you can feel proud of knowing that you have other people’s interests in mind. This is because you no longer have the incentive to overlook people’s interests to make money to survive.

Financial Independence also allows you to value your time more. Ironically this results in the people that need money the least getting the highest pay for their time. If you don’t need more money, you won’t be scared of losing a customer. This results in you only taking the customers that you can provide the most value to because those relationships are the most fulfilling. This also results in better service that your customers will be willing to pay more for and refer more customers to you. You end up with both more customers and higher prices all doing work that you find fulfilling.

Financial independence also frees up your time since you don’t have to work. This allows you to focus more of your attention to your relationships with family, friends, and your community.

Couple-Relaxing-GrassFinancial Independence also reduces stress because you don’t need to worry about money. It doesn’t matter if you lose your job or the economy tanks because you already have enough money to survive! Financial pressures caused many fights in relationships and even is the cause of many relationships ending. Having enough money removes this added stress because money is no longer something important enough to fight over.

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5 thoughts on “Benefits of Financial Independence

  1. Congrats on being FI!

    “Financial Independence also allows you to value your time more.”

    I agree! I’m FIREd and my attitude is that time is a scarce resource that I try to use wisely. This feels especially true now that I’m 57. Time feels way shorter than it did when I was, say, 35 because it is!


    1. Congratulations to you being FIRE! To clarify, I intended to include myself in the group of people that enjoy working not FI. My FI is more murky as I don’t have 25 times my annual spending invested. I do have passive income coming in and even if I retired, the things I would do to fill my time would make money (substitute teach, coach, become a Crossfit coach, etc…), so if I RE right now those income streams would make up the difference, but I am waiting until the end of next school year to declare myself FI.

      The future is unknowable, so time is always short. It just is more obvious to you than it is to me 😉

      As someone who is FIRE already, what would you add to the list?


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