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  • Blake Bowman

3 Keys to Financial Independence

Around the world, everyone seems to enjoy freedom. I thought it fitting to discuss my three keys to achieving financial independence in honor of Independence Day. Let's get started...

The first key is to clearly identify your version of financial independence. For many people, it means simply being debt-free. Others consider it the ability to live off their financial assets for the rest of their lives. I define it as being able to do what I enjoy doing, where I enjoy doing it, and with whom I enjoy spending time. My research led me to this more technical definition:

“Financial independence should mean the ability to live more or less as one wants to, within reasonable limits. It may not mean the absolute freedom to never work another day again, but it should mean the ability to quit a bad job, go back to school, or start a new business without major sacrifice. In addition, financial independence should include having the resources to deal with life's ups and downs without scrimping, sacrificing, or going deeply into debt.” https://www.investopedia.com/financial-edge/0611/declare-your-own-financial-independence-day.aspx

The second key is to know your number. I mean to know how much money you need in today's dollars after taxes to live your version of the good life. For example, let’s say that your number is $5,000 per month or $60,000 per year. Knowing and tracking this is crucial. The best way to do this is by using the old, faithful budget and being honest with yourself. You might realize that if you paid off some debt, you could reduce your number. Perhaps if you live a bit more simply in certain areas (Amazon Prime, Starbucks, eating out, etc.) then you can decrease your number. I have found it to be true that the simpler your life is, the more free you are. Your likelihood of financial independence increases as your number decreases. The inflation rate will inevitably cause your number to increase over time, so you must plan and invest wisely.


The third key is to get to work. Our nature is to procrastinate. Do you remember that time you spent hours putting together that workout schedule you never followed or that vacation you never went on? It's certainly true for me. It's the third key, and probably the most important one as well. Mark Twain once said "The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and then starting on the first one." This is the main reason that I am in business – to help you take the necessary steps to become financially free.


Please reach out to me directly if you would like to discuss anything you have read in this post. The best way to reach me is by email (Blake@wavewealthplanning.com), or book an initial consultation with me on the website.

Here to help,

Blake