Step 8 Review and Reflection
- You can generate income by investing your capital in investment vehicles.
- Inflation is a generalized concept that does not necessarily define what you will experience over time. Your personal spending trends define your own inflation rate more accurately than do national inflation-rate data.
- Once you have enough predictable, dependable income from your investments, you no longer have to work for a living. You are financially independent.
- What would you do if you were truly financially independent (didn’t have to work to earn money)? Describe what financial independence would look like for you in terms of your “work” and your lifestyle. What shifts would you make in expenditures of money and time?
- How does it feel to be able to accurately estimate a date when you’ll be financially independent? How does this motivate you?