Financial Independence Finally Achieved

I have some exciting news. It is my pleasure to report that I have achieved financial independence. Honestly, I am still trying to process the good news. This has been a goal of mine for the longest while. That’s one of the reasons why I was interested in dividend income in the first place, and why I started this blog. It feels a bit weird now that I’ve achieved financial independence. It’s even weirder to say it out loud. What is true is that this is an exciting post for me to write. So, without further adieu, let’s dive in to discuss.

A Defining Moment

I remember one day I was in college and I was very hungry. What’s more is that I didn’t have any money to buy food! Most of my funds went to paying the minimum balances on some (but not all) of my credit cards! I could barely afford to buy Ramon noodles. That’s just how much little money I had.

That was a tough experience to go through but I am glad I did. I swore to myself that I would never find myself in that situation again. Ever since then, I worked on getting a better understanding of my finances. Too often, I would simply ignore the debt. I would hate it every time I got mail. I would ignore the debt collection agencies that kept calling me. It was a bad time in my life financially.

But, eventually, I took control of the situation. I repaired my credit and got to the point where I was making positive cash flow every month. It wasn’t easy, but I clawed my way out of debt and out of the financial mess I found myself in.

As you will soon see, it’s highly unlikely that I will ever be in that situation again. If my calculations are correct, and barring some highly unusual circumstance, I likely will have enough money for food, clothing, shelter and basic entertainment that will last me for the rest of my life!

What Is Financial Independence?

According to Investopedia, “A quick definition of financial independence could be having enough wealth to live a life of comfort without the need to work.” But, as Investopedia rightly points out, “In truth, financial independence can mean different things to different people.”

As for, I like and subscribe to Investopedia’s definition of financial independence. What’s important to me is having enough guaranteed income to being able to maintain my currently lifestyle. The key here is “guaranteed income”!

One way to achieve financial independence is through investments. For example, if I had a large enough portfolio, I could earn dividends on a monthly or quarterly basis. To make the portfolio more safe, I could invest in dividend ETFs or index funds. While dividends aren’t technically guaranteed, and in fact may even decline, a large enough portfolio of dividend stocks, ETFs or index funds, could allow one to achieve financial independence.

Another way of course is through real estate. A large enough real estate portfolio could produce enough income to allow an investor to achieve financial independence.

There are many other options. One final option that I’ll mention is if an employee was able to work at a job long enough and earn a pension from that work. Depending on the size of the pension, it may allow that employee to achieve financial independence.

How I Achieved Financial Independence?

Of all the ways I mentioned above, I was able to achieve financial independence from my job! My retirement was approved and accordingly, I will be getting a pension that will last me for the rest of my life!!!

Based on my calculations, the pension I will receive will allow me to maintain a comfortable lifestyle. It’s a great position to be in and I am very thankful!

What I Plan To Do With My Financial Independence?

Work! Quite honestly, retirement has been boring! I can understand why elderly people continue to work. The difference of course is that because I am financially independent, I have a bit more freedom to pick and choose what job I take on.

In the immediate future, I plan on taking bartending classes so that I can obtain the necessary certifications and learn how to be a bartender.

But, I am deciding between doing nothing, being a bartender, or pursuing another professional job. A professional job sounds great in theory, but it also comes with more stress – something I don’t need in my life. But we will see.

Ultimately, regardless of the option I choose, I plan on enjoying life to the fullest. Wish me luck.

Final Thoughts

I feel blessed to be writing this post. I know many Americans live paycheck to paycheck and I used to be one of them. While I am not rich, by any stretch of the word, I am financially independent.

My bills are still a bit high. So, over the next few months I plan on paying off my credit card and and really get a solid emergency fund established. I will also look for ways to lower my expenses. The point being is that just because I am financially independent doesn’t mean that I am immune from making bad decisions or that my financial situation cannot be improved. But, with financial independence comes financial freedom!

While I have maintained a minimum level of financial independence, I plan on continuing to build my wealth so I can have even more financial freedom! The point is that Dividend Portfolio isn’t going anywhere. So, stay tuned for future updates on my portfolio and my progress.

What did you think of this post? Let me know your thoughts by commenting below.