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Going independent. Economic.

Everyone talks about financial independence, but what exactly is financial independence?

In the difficult economic reality in which we live, we are required to be more independent today even in our economic choices: do we make sure to free up time and energy for proper management of the family finances, do we track or record current expenses in the family, have we learned to compare prices?

Many of us do not always know how to manage financially, which makes it difficult to ” make ends meet”, and often fall into a deep crisis that severely affects the quality of life and the resilience of the family.

The first tendency is to make complaints. True, it is always possible to complain to the state and the authorities, and indeed there are many things that need to be done and not done. However, as mentioned, independence is purchased and not received as a gift.

And independence begins first and foremost witha deep decision to take responsibility for our lives. Our sages used a harsh expression: “Make your daughter profane, and do not need creatures.” So much so. After our declaration of economic independence, we must henceforth treat all financial conduct within the family framework as a small economy for all intents and purposes, with expenses and incomes, with suppliers and price comparisons, with bargaining with everyone who is with us in any system of sales trade.

It seems that this is also the secret of National Independence Day: that understanding, once, among a few in the Jewish people and later among many, that the Gordian knot between the Diaspora and the difficult situation of the nation must be cut. Few among us decided not to wait any longer for salvation to come in the last days, but took action and fulfilled the vision of the ages. They immigrated to Eretz Israel with the goal of no longer relying on the mercy of foreigners. In almost all cases, the decision of independence and immigration to Israel was accompanied by a decision to achieve economic independence. Any establishment of a settlement based on agriculture or commerce instead of donations from the “partition” funds was the actual realization of the desire for economic independence. There were difficulties that seemed unbearable along the way, but the decision in principle marked the direction and in light of it we went this far.

Imagine that moment when you wake up in the morning and know that you have reached financial independence.

Is this something that can suddenly happen to anyone in their life? Is it really a single moment, when life suddenly changes, or is economic independence a process in which one moves in small steps, towards the desired goal – an improved economic situation when dependence on other factors decreases?

A common definition of financial independence deals with the ability to manage existing money so that it is sufficient to live in the desired lifestyle.

How much money is that? And what is that desirable lifestyle? This varies from person to person.
Let’s start with money, some believe that it is the total income of a person from work and profits on investments. Others perceive economic independence as a life in which a person is not required to work at all for a living and his passive income (his income not from work) is what will be enough for him to live in the way he would like to live.
In the discussion regarding the standard of living, the question arises whether the standard of living defines the ability to achieve economic independence. Does the fact that your expenses today exceed your income necessarily mean that you will not achieve financial independence?

What is financial independence for you?

There are those for whom financial independence is the day when they can stop for a moment the race of life and simply enjoy, there are those for whom independence is a reality without debts and without economic dependence on any other factor, there are those for whom economic freedom means working exactly what they want and only because they want to, and there are those for whom the ability to manage their money and control how it is spent – is their long-awaited economic freedom.

Imagine the day when you will be financially independent, imagine an ordinary day, not a luxurious vacation you will go on but just a weekday, what would such a day of yours look like?.
What time will you wake up in the morning?
What will you eat at breakfast?
What do you choose to do that day?
How will you spend the evening?
What will your home look like?
How do you get around?

Now think for a moment, do you want to live in financial independence as you defined it? Are you ready to make the necessary changes in your life in order to be able to financially achieve the desired financial independence?

Whatever your personal definition of financial independence may be. The journey to it will always begin with taking responsibility for your situation and building a long-term plan that will lead you, step by step, to the goal.

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