What does financial independence signify?

Financial independence signifies the ability to live without depending on employment for income. This concept means that an individual has sufficient financial resources to meet their living expenses without needing to actively work. Achieving financial independence typically involves having passive income sources, such as investments, rental properties, or savings that generate enough returns to cover one’s lifestyle costs.

By being financially independent, a person can pursue their interests or passions without the pressure of needing to earn a paycheck, thus providing a sense of freedom and security. This state is often a goal for many individuals seeking long-term financial stability and personal fulfillment.