HOW TO RETIRE BEFORE 40 - FINANCIAL INDEPENDENCE 

 Before you start reading this article, I suggest you take something into account: What you have learned to date about wealth, financial independence, and the best way to invest your money may not be entirely accurate.

 And I clarify that at no time my intention is to discredit the knowledge you acquired and much less those who taught it to you, but it is likely that those who taught you about the subject have a fairly traditional view of the matter, having completely ignored an enormous and relatively new possibility, the information of which is still unknown to many in our region.

 What I want to achieve with this comment is that you read my article with an open mind to all the possibilities because, although they may seem a little crazy or too good to be true, I can assure you that they have already given great results to thousands of people. , including me.

 ACHIEVING FINANCIAL INDEPENDENCE IS NOT A UTOPIA

 Do you feel that it is time to improve your personal finances? Do you dream of paying all your debts, investing money, and achieving the long-awaited  Financial Freedom, but you don't know where to start? 

 You're in luck because you've come to the right place! And it is that in this post I will share with you a mega «summary», of everything I have learned investing several hundred thousand dollars, over the last 5 years; to the point of multiplying the profits that my online business has given me, thanks to the magic of compound interest. 

 WHAT IS FINANCIAL INDEPENDENCE?

 It is the state in which a person or family has sufficient economic solvency to be able to live without depending on income from some form of employment.

 Due to this definition, many people tend to confuse financial independence with retirement, and they are not the same thing. Retirement is the end of working life due to age and is usually obtained after having worked practically all your life.

 Instead, financial independence is the end of compulsory work, no matter if you are 65 years old or just turned 30. When you achieve financial freedom, you decide whether or not you want to continue working, if you retire for a few years and then go back to work. I roll, or if you dedicate yourself to weaving for the rest of your life.  

 NOT THAT YOU STOP WORKING, BUT THAT YOU DO NOT NEED TO

 I want to make it very clear that my goal has never been to stop working completely, as long as things continue as they are now (I am very young, with a head full of ideas, and with a lot of energy).

 But I do look forward to the time to continue doing this just for personal satisfaction and without having to worry about money.

 My goal is to ensure that, even if I stop working for the rest of my life, I never have to worry about not having enough money to take a vacation, or to cover any financial obligation that comes my way. 

 HOW MUCH MONEY DO I NEED TO ACHIEVE FINANCIAL INDEPENDENCE?

 Surely by now, you are already wondering: How can I do it too and how long will it take me to become a financially free person?

 The reality is that this is different for each one since it depends on how much money you earn, what your current expenses are, the lifestyle with which you aspire to retire, the future expenses that lifestyle entails (including children and paying for your education, travel, old age, etc.) and some other minor factors.

 My personal process to reach the state of financial independence ( there are different ways ), is as follows:

Saving and investing 25 to 28 times the amount of my annual expenses in index funds, with a withdrawal per year of 4% or less of the total portfolio (taking into account its increase due to inflation), in addition to continuing to generate a passive income  (earn money without actively working) for as long as possible. 

 If, for example, the formula you choose to seek your financial independence is the same as mine, but in your case, your annual expenses are $40,000.00 dollars, it means that you will need to save/invest $1,000,000.00 (one million) dollars. Then, each year you would withdraw $40,000 plus a 3 percent annual increase, due to inflation.