What does the concept of "financial independence" refer to?

The concept of "financial independence" primarily refers to having enough wealth to avoid working for basic needs. This means an individual has accumulated sufficient assets and resources that allow them to meet their living expenses without relying on a job or consistent employment income.

Achieving financial independence typically involves strategies such as saving aggressively, investing wisely, and managing expenses effectively. The goal is to create a financial cushion that supports one's lifestyle, preferences, and needs without the requirement of exchanging time for money through traditional employment.

Other concepts, such as working whenever one chooses or relying on family for ongoing financial support, do not fully capture what financial independence entails. While investments can contribute to wealth accumulation, financial independence is more about the overall financial situation that allows for the freedom to make choices regarding work and leisure.