Achieving financial freedom requires careful planning and investing.
The term "financial freedom" is commonly used to describe various income situations, but its core meaning is liberation from the necessity of being employed. It involves having sufficient savings or investments to sustain your living expenses indefinitely, ensuring a perpetual income stream. The manifestation of this freedom varies, with some women desiring financial autonomy and younger individuals aspiring to take extended travel breaks.
However, the fundamental concept remains consistent: the ability to cease working for monetary compensation. It's crucial to note that this form of freedom differs from early retirement; it grants the choice to retire early, if desired, due to achieving financial independence.
High living costs make retirement planning a personal puzzle. A Reddit poll seeks answers, focusing on how much people actually need to achieve financial freedom.
The Reddit poll posed the question to social media users: "How much money do you think is enough for financial freedom?"
How much money is enough for financial freedom?
byu/TonyLiberty inFluentInFinance
In the poll, 719 users shared their perspectives, categorizing their responses into four brackets. Among them, 171 individuals indicated that they believe financial freedom requires an amount between $1 and $3 million. Another 281 participants expressed the opinion that a range of $2 to $5 million is necessary for financial independence. The bracket of $5 to $10 million was chosen by 170 respondents, while at least 95 users asserted that they would need more than $10 million to achieve financial freedom and discontinue working for monetary compensation.
The interesting poll also received many comments that discussed the views of the respondents.
"$2-5 million is too broad a window. Compound gains on $5 million will outpace almost anyone's current income, while $2 million may require many to draw down on the fact that it's not infinite financial freedom," commented a user.
"It is interesting to see people's expectations. Once I had my debts paid and could make mortgage payments, life changed drastically. Hitting net zero for me is financial independence," wrote another user.