{"id":422,"date":"2023-09-03T16:35:56","date_gmt":"2023-09-03T20:35:56","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/?post_type=chapter&p=422"},"modified":"2024-11-19T05:28:57","modified_gmt":"2024-11-19T10:28:57","slug":"definition-of-financial-independence","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/chapter\/definition-of-financial-independence\/","title":{"raw":"Definition of Financial Independence","rendered":"Definition of Financial Independence"},"content":{"raw":"Many Canadians dream of financial freedom.\u00a0 There is sometimes a myth that one needs to win the lottery or be lucky enough to receive a significant inheritance in order to obtain [pb_glossary id=\"254\"]financial independence[\/pb_glossary].\u00a0 Financial independence entails having sufficient savings, investments, and other [pb_glossary id=\"434\"]passive income[\/pb_glossary] sources to meet an individual or family\u2019s lifestyle means without further reliance on income from employment.\u00a0 The pathway towards financial independence can be for individuals starting at any age, wealth, or current salary level.\r\n
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Example: Financial Independence Not Achieved<\/strong><\/p>\r\n\r\n<\/header>\r\n

\r\n\r\nJames is a Red Seal Endorsed bricklayer journeyperson.\u00a0 James has been employed with a trade union for 32 years and is entitled to receive pension income of $3,500 a month after-taxes, upon retirement from his long-term employment.\u00a0 James' current lifestyle has expenses of about $5,000 a month.\u00a0 James is not considered to have achieved [pb_glossary id=\"254\"]financial independence[\/pb_glossary], as his state of expenses exceeds the predicted pension income he will receive on an ongoing basis.\u00a0 After James retires as a bricklayer journeyperson, he will still be required to earn further employment income to make up the difference in his continuing expenses.\r\n\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n
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Example: Financial Independence Achieved<\/strong><\/p>\r\n\r\n<\/header>\r\n

\r\n\r\nAngela is a Red Seal Endorsed boilermaker journeyperson.\u00a0 Angela has been employed with a trade union for 15 years and is entitled to receive pension income of $2,300 a month after-taxes upon retirement.\u00a0 Angela's current expenses are approximately $1,900 a month.\u00a0 Angela has achieved [pb_glossary id=\"254\"]financial independence[\/pb_glossary] at this point of time, as her expected pension income will cover her lifestyle expenses each month.\u00a0 Even though Angela has gotten to a financially independent state, Angela can choose to work further as a boilermaker journeyperson so that her pension income will be higher in the future.\u00a0 Additional years of employment will assist Angela to incorporate an increased comfortable lifestyle upon her retirement.\r\n\r\n<\/div>\r\n<\/div>\r\nHaving [pb_glossary id=\"242\"]financial freedom[\/pb_glossary] can be attained through a variety of approaches.\u00a0 Steps can be taken by any individual to build [pb_glossary id=\"1190\"]financial literacy[\/pb_glossary], transform your life, and work towards financial independence.\r\n\r\n ","rendered":"

Many Canadians dream of financial freedom.\u00a0 There is sometimes a myth that one needs to win the lottery or be lucky enough to receive a significant inheritance in order to obtain financial independence<\/a>.\u00a0 Financial independence entails having sufficient savings, investments, and other passive income<\/a> sources to meet an individual or family\u2019s lifestyle means without further reliance on income from employment.\u00a0 The pathway towards financial independence can be for individuals starting at any age, wealth, or current salary level.<\/p>\n

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Example: Financial Independence Not Achieved<\/strong><\/p>\n<\/header>\n

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James is a Red Seal Endorsed bricklayer journeyperson.\u00a0 James has been employed with a trade union for 32 years and is entitled to receive pension income of $3,500 a month after-taxes, upon retirement from his long-term employment.\u00a0 James’ current lifestyle has expenses of about $5,000 a month.\u00a0 James is not considered to have achieved financial independence<\/a>, as his state of expenses exceeds the predicted pension income he will receive on an ongoing basis.\u00a0 After James retires as a bricklayer journeyperson, he will still be required to earn further employment income to make up the difference in his continuing expenses.<\/p>\n

 <\/p>\n<\/div>\n<\/div>\n

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Example: Financial Independence Achieved<\/strong><\/p>\n<\/header>\n

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Angela is a Red Seal Endorsed boilermaker journeyperson.\u00a0 Angela has been employed with a trade union for 15 years and is entitled to receive pension income of $2,300 a month after-taxes upon retirement.\u00a0 Angela’s current expenses are approximately $1,900 a month.\u00a0 Angela has achieved financial independence<\/a> at this point of time, as her expected pension income will cover her lifestyle expenses each month.\u00a0 Even though Angela has gotten to a financially independent state, Angela can choose to work further as a boilermaker journeyperson so that her pension income will be higher in the future.\u00a0 Additional years of employment will assist Angela to incorporate an increased comfortable lifestyle upon her retirement.<\/p>\n<\/div>\n<\/div>\n

Having financial freedom<\/a> can be attained through a variety of approaches.\u00a0 Steps can be taken by any individual to build financial literacy<\/a>, transform your life, and work towards financial independence.<\/p>\n

 <\/p>\n

definition<\/span>