Financial Independence

Financial independence (FI) is the state of having sufficient personal wealth and passive income to live without having to work for money. A financially independent person's assets generate income that is greater than or equal to their expenses, making employment optional rather than necessary.

Financial independence does not necessarily mean retirement. Many FI achievers continue working because they enjoy their work — but they do so by choice, not necessity. This freedom fundamentally changes the relationship with work, allowing people to take risks, negotiate from strength, and leave toxic situations without financial fear.

The FIRE movement (Financial Independence, Retire Early) takes financial independence a step further, combining it with the goal of early retirement. The two concepts are related but distinct: FI is about freedom; RE (retire early) is one way to exercise that freedom.