Everyone dreams about financial independence. But what does it mean to be financially independent? Most people would probably say it means quitting their jobs and retiring early without ever needing to work again. They can rely on a passive income from their pension to survive for the rest of their lives.
Does that sound like something you want? From a practical standpoint, it is understandable why this would be some people’s definition of financial independence. However, others would disagree because relying on a pension will still limit one’s ability to build wealth and live out their dreams.
For example, if you must live on a fixed income for the rest of your life, what will that life be like? It will limit your financial independence because you cannot do anything other than pay your bills to survive. You won’t be able to go on vacations, move to a new house, buy a new car, or do any other things you want.
What Does Financial Independence Mean to You?
Society wants us to believe that financial independence is about surviving without working. Is that your definition of financial independence, or do you want something more?
Surviving is not the same as living because of the restrictions you still live under. True financial freedom is about making enough money to live your dreams and seek more lucrative opportunities. To make this happen, you will need more than a pension or one source of income.
Creating multiple sources of income can help you achieve true financial independence to live your dreams. That doesn’t mean you’re going to retire from working altogether. Instead, you’ll just be devoting your time to working on other things that will produce those multiple sources of income.
Top Ways to Become Financially Independent without Retiring
Retirement does not make you financially independent. It is just an escape from working a traditional job so that you can live a relaxing life. But if you don’t have the financial means to support the life you want, you need to continue to work on projects that can give you that life.
Here are four ways to become financially independent without retiring.
1. Start a Business
When we talk about “not retiring” to become financially independent, it means working for yourself rather than someone else. You will never build wealth working a typical 9-to-5 job for the rest of your life, so you should retire from that and start working for yourself to build wealth. That is what it means to become financially independent without retiring.
One way to begin accomplishing this objective is to start your own business. Since we live in the digital age, you could start an online business without a huge investment. All you need to do is figure out which products or services you could sell remotely and create an online business around it.
Here are some ideas for online businesses:
- Resell thrift store items on your website or eBay
- Sell digital services (e.g., writing, illustrating, web design)
- Create physical products and sell them online (e.g., t-shirts, cups)
- Start a YouTube channel and make it successful enough to monetize
Let your creativity guide you on your entrepreneurial journey to achieving financial independence.
2. Embrace Your Creativity
Retiring from a so-called traditional job will give you more time to work on creative projects. Whether you think you’re creative or not, everyone has some creativity ready to be released. People don’t often release their creativity because they’re too busy working. But if you’re no longer working a regular job, you finally have the time to release your inner creativity.
Here are some examples of creative projects you could pursue:
- Write a book
- Draw or illustrate pictures
- Make amateur movies
Creative projects won’t help you build wealth immediately, but they could bring long-term profits if you sell or license them after you finish creating them.
Alternatively, you don’t even need to sell them at all. Maybe you’re happy living off your pension and spending the rest of your time embracing your creativity for fun. That can still be a fulfilling lifestyle if that’s what makes you happy.sign, with features like seatbelts and collapsible steering columns becoming more common.
3. Pursue the Job You Want
The oil crisis of the 1970s and stricter safety and emissions regulations dramatically altered car design. Many people don’t like their jobs but feel trapped because they make more money to pay the bills. Perhaps they cannot afford to quit their traditional 9-to-5 jobs to pursue their dream jobs, especially if their dream jobs pay less.
Your financial independence starts when you can afford to quit the job you dislike and work the job you like. Many retirees collecting a pension will continue to work more fulfilling jobs they’ve always wanted, such as teaching or volunteering for a worthy cause. Although they don’t pay well, it can still be fulfilling if those are the jobs you love. Meanwhile, you will still use your pension to pay your bills while working your dream job.
4. Freelancing and Gig Work
Suppose you’re in a situation where you could retire with a pension but still cannot afford to pay your bills. Maybe you don’t want to be responsible for starting a new business or career either. What could you do in this situation to achieve financial independence?
The best solution is to become a freelancer who does gig work. It has never been easier to be a freelancer because freelancing apps and website platforms can connect you with clients looking to hire someone to do a temporary job for them.
Freelancers set their schedules, which means you control how much you want to work and when you want to work. You might think of this as financial independence because you no longer answer to a boss or commit yourself to one company long-term. Spend the money you make from freelancing on other things that make you happy, such as nice meals, a better car, vacations, etc.
Conclusion
Financial independence doesn’t mean you have to retire early. It just means you have the freedom to work and live the lifestyle you want. You could work a different job, start a business, or pursue your creative hobbies to achieve financial independence without retiring. All the choices are yours.
