4 Tips for Achieving (and Preserving) Financial Independence
Financial Independence: If You Can Plan It, You Can Achieve It
Financial independence. We all want it. It’s #goals.
But as Antoine de Saint-Exupéry said, “A goal without a plan is just a wish.”
With that in mind, do you have a goal? Or do you have a wish?
Whether you want to enjoy your golden years without worry or you want to retire early, financial independence is attainable. Just keep this axiom in mind – if you can plan it, you can achieve it.
Of course, in the world of finances, there are no guarantees. But there are opportunities for every one of us to become financially self-sufficient — if we follow the right steps.
With that in mind, here are four key suggestions to help you plan your path to financial independence.
1. Plan Ahead
We all know the fable of the ant and the grasshopper. One prepares for his future, while the other fritters away his prime years. We’re not saying you shouldn’t enjoy life, but you must make the most of your saving and investing years.
That means spending less than you make, no matter how much you make — and it’s absolutely crucial that you invest, and invest prudently. Take your emotions out of the equation. (Cognitive and emotional investing biases can throw even the smartest planners off track.)
Don’t automate your approach. Instead, take the time to create a plan with a financial advisor and delve into the math behind how your savings amount translates to your expected portfolio value. As a general rule, you need roughly 10 times your annual income saved by the age of 67 to retire comfortably, according to Investopedia.
Need some guidance? This article outlines when financial independence might be right for you.
2. Believe You Can Achieve!
You’ve imagined the day a thousand times. You’ve clocked out for the last time, the confetti from your retirement party peppering the floor. You’re finally free.
But are you?
The day you retire marks not only a lifestyle change but also a massive financial shift — you’re no longer investing into your future, you’re now drawing from it. That can feel like a big leap of faith that your money will outlive you.
But for the well-prepared, faith has little to do with it. You need a strategy and a sustainable plan. With the help of a financial planner, you can determine exactly how much your portfolio can afford to pay you, no matter what the market does. That becomes your new income.
3. Protect Your Wealth
So, you’ve planned it all out, invested responsibly, and built a nice nest egg. That’s it, right?
Wrong.
Preservation is the next critical phase of wealth management — and it requires a different skill set than growth. Many smart individuals grow their wealth but lose it multiple times because they don’t understand how to protect it.
Once you stop working, you have less flexibility to bounce back from mistakes. On a fixed income, bad decisions are expensive.
Preservation means understanding:
Diversification (like investing in commodities)
Adjusting risk tolerance (read more on changing risk tolerance)
Asset allocation (see this helpful beginner’s guide)
Rebalancing your portfolio (why rebalancing matters)
These aren’t just buzzwords — they’re essential practices for ensuring your money lasts.
4. Stay the Course
How did your portfolio hold up through the pandemic? If you're already retired, did it continue to support your income through the volatility?
If yes, thank your past self’s smart planning — and your present self’s resolve.
Avoid emotional reactions to short-term volatility. Abandoning your long-term strategy due to market dips is like throwing away your GPS during traffic — not wise.
Trust your plan. Trust the financial science behind it. Trust the advisor who helped you build it. Financial independence is within reach — but only if you stay the course.
Want a deeper understanding of how global shifts like the pandemic, inflation, or small business trends affect your goals? Here's a look at COVID’s economic impact and how planning helps preserve your savings.
If you're wondering whether you're on the right track for financial independence, you've come to the right place.
Our mission is to help Austin-based families, individuals, and business owners turn financial goals into reality. Reach out to us at info@nestfinancial.net to build your personalized, comprehensive financial plan.
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DISCLAIMER: This article is for educational purposes only and does not constitute financial planning or investment advice. For personalized guidance, drop us a line at info@nestfinancial.net.