My mentor Jim Rohn described financial independence this way. It is the ability for a person to live off of the money or the assets a person has accumulated themselves and has no reliance on someone else to provide them money to be able to live the lifestyle they choose to live. He most likely said it more eloquently, because he was just that good. But once I heard this, I said to myself, that is my goal.
There isn’t a clear definition for financial independence out there really, because everyone has a different interpretation of what it means to them.
However, I do know what independent means and you do too. And that is what I want for myself and I want for the readers of my site.
According to a 2021 survey by Charles Schwab, the percentage of Americans who consider themselves to be financially independent varies by age range. Here are the results:
- Age 18-34: 25% consider themselves financially independent
- Age 35-44: 43% consider themselves financially independent
- Age 45-54: 57% consider themselves financially independent
- Age 55-64: 61% consider themselves financially independent
- Age 65 and over: 68% consider themselves financially independent
I don’t want to question the research provided, but there isn’t very much out there around this topic. Which to me makes the point even more clear on why I am writing about this topic. Our culture and society doesn’t talk about this topic enough. If we did there would be a whole lot more information and facts around it.
Back to my point about not questioning the research.
18-34’s in the research, 25% said they were financially independent. My guess is that they don’t have much accumulated which means they may not need much to maintain their lifestyle.
The 35-44 year olds in the research. It is saying close to half (43%) consider themselves financially independent. This is my peer group by the way. I am at the top end of the age range. I don’t know of anyone in my peer group that would actually consider themselves to be financially independent based off the definition I provide for financial independence.
The other two age groups, the numbers kind of make sense on the surface. But if you read any of the information out there about savings rates and overall financial health of most of the population. It doesn’t compute.
I think another point that needs to be made about the research is that the people that would actually take a survey conducted by Charles Schwab would most likely be more financially stable.
You are probably thinking why did I cite this research, if I am crapping on it. And as I said before I cited this research because there isn’t much out there around this topic.
The reality is most people aren’t financially independent. Especially in their 40’s. Maybe in their 50′ and 60’s and I hope they are in their 70’s.
It is possible for you and for me. We just have to be committed to making it happen.
To your success and your future.
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