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Financial independence means they could quit today, not have a single change in their lifestyle, and remain insulated from catastrophe (e.g. medical illness) de
by sidlls 9y ago
Financial independence means they could quit today, not have a single change in their lifestyle, and remain insulated from catastrophe (e.g. medical illness) destroying that ability.
It doesn't mean $1M in the 401k and a couple of residential houses they rent out.
- dahdum 9y agoIt means they could quit today, and be able to comfortably live the rest of their life without earned income. It doesn't mean the exact same lifestyle - many people plan to retire early to LCOL areas. Especially in that subreddit(1). You're right about the 401k - that $1M doesn't help too much until you hit retirement age. You need substantial unearned income or enough principle to draw down to be FI. 1. FatFIRE targets $4M-$7M, and is closer to your definition.(https://www.reddit.com/r/fatFIRE/ https://www.reddit.com/r/fatFIRE/)
- TulliusCicero 9y agoNo, financial independence means you could live indefinitely without further earned income. For some that would mean just basic living expenses, for others it would mean covering luxuries too. You don't get to define what others are okay with living on, sorry.
- sidlls 9y agoSo a homeless person who chooses it is "financially independent?" At some point the phrase just doesn't have a meaning at all.
- kobeya 9y agoYou should check out /r/vandwellers sometime.
- TulliusCicero 9y agoIt's possible to argue that, but I'd argue that being dependent on the goodwill of others and charities for your sustenance means you're not actually independent.