Friday, April 25, 2008

Financial independence

For me, the true definition of wealth is financial independence.What does this mean? Well, if I can stop working for money (and may as well continue working just because I love medicine-taking care of patients-academic pursuits etc.), then I'll be truly financially independent.
Which means that whatever collateral income I have (retirement funds, savings, real estate etc.) should bring me exactly what I spend each month. How achievable this goal is depends on my financial needs and expenditures.
Therefore, I don't look at high income as a mesure of wealth. You can be poor even with the high income if you have no savings/investments and assets to your name. Stuff you might be acquiring with your high income (and that incudes nice cars and big houses, in addition to flat screen TV's and titanium golf clubs) does not bring you any closer to true wealth.

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