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Financial Independence

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Ori Molad Tamar Baskind 11/13/12 Word Count: 882 Paper 4 Achieving Financial Independence As the Fourth of July should remind us all, independence is something worth fighting for. Independence means the ability to make your own decisions and live the way you choose to live. When it comes to financial independence, though, many people believe it is only a dream. There is no absolute definition for financial independence. The most common sense of the term is that someone has enough wealth to live as they wish for the rest of their life without having to work. This is a foggy definition, though - isn't picking a stock "work"? What about people who own a business and are not involved in day-to-day activities, but still step in for …show more content…

Nobody is born knowing anything about the stock market or rental properties, and most people do not have a parent or mentor to learn from at a young age. Instead, most people learn by researching, reading, and rolling up their sleeves and getting their hands dirty. That process never ends. There is always more to learn, not only about investing but about specific investments as well. Likewise, financial independence requires a lifetime commitment to continuous investment. Financial independence is not simply a process of saving some money, investing that money and calling it a day. Instead, those who would be financially independent have to be on the lookout for new opportunities and news ways to make the most of their hard-earned capital. After all, the price of freedom is eternal vigilance. Independence does not come simply because people demand it, nor because someone decides they want it. It is important to take that first step and make a declaration of what you want, why you want it and what you are prepared to do to get it. Decide what financial independence means to you. Once those decisions are in place, come up with a clear plan that outlines what you need, what you want, what you have today, and what you can do to move towards independence (this includes the budgeting, cost-cutting and investment plans). Last and not least, stick to that plan and keep the goal in sight. Financial independence is not easy, but it is not impossible for those

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