Based on a conservative 2.5% – 5% annual return, a household would need investments of between $1,200,000 – $2,400,000 to be considered financially independent. Once you’ve got at least $1,200,000 in investable assets and no longer want to work again, I don’t recommend shooting for an overall return much greater than 5%. You can carve out 10% of your investable assets to go swing for the fences if you wish, but not more. There is no need since you have already won the game.

If you want to clear some space out in your house and have a big stack of books you’ve been holding onto for too long, you can make money selling your books and textbooks online. Stores like Half Priced Books and others will give you cents on the dollar for each of your current books while you can check what your book is worth by simply entering the ISBN number on Book Scouter.
You can keep your career moving forward by keeping your work skills sharp, and increasing your value to your employer. You should put yourself in the running for promotions where possible, and hold yourself open for better opportunities with other employers. If you are self-employed, it means steadily working to keep your business moving up to the next level.
Age and existing wealth or current salary don't matter – if someone can generate enough income to meet their needs from sources other than their primary occupation, they have achieved financial independence. If a 25-year-old has $100 in expenses per month, and assets that generate $101 or more per month, they have achieved financial independence, and they are now free to spend their time doing the thing they enjoy without needing to work a regular job to pay their bills. If, on the other hand, a 50-year-old earns $1,000,000 a month but has expenses that equal more than that per month, they are not financially independent because they still have to earn the difference each month just to make all their payments. However, the effects of inflation must be considered. If a person needs $100/month for living expenses today, they will need $105/month next year and $110.25/month the following year to support the same lifestyle, assuming a 5% annual inflation rate. Therefore, if the person in the above example obtains their passive income from a perpetuity, there will be a time when they lose their financial independence because of inflation.
Are you a professional in a field that can help answer questions for people looking for your expertise? Websites like JustAnswer and LivePerson match you up with people looking for answers to technical or professional questions. You can make money online by simply answering these questions and providing the right information to people based on their individualistic circumstances.
Build up a following on your Instagram account and you could quickly be making extra money online. Major brands, gear companies, and even startups are willing to shell out $500-$5,000+ per post to get in front of your audience. While it’s getting harder and harder to build a massive Instagram audience, if you already have a solid niche and are posting quality content regularly with a great camera for taking Instagram photos, with a few small tweaks you can make yourself an influencer. Check out this awesome article from Shopify on how to build and grow your Instagram following to get started.
Photos of people can only be sold for commercial use if they've signed a 'model release' that gives you permission to use their image (children need a parent/guardian to sign). Without a release, these photos can still be sold for editorial use, as long as they were taken in a public place – eg, if you submitted a 'breaking news' shot with people in the background. If there's any doubt, always ask permission.

How can I be financially free


Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.
Vanguard: Vanguard has a minimum of $50,000 and a fee of 0.3%. Rebalancing is done automatically once every quarter and tax loss harvesting is done on a client-by-client basis. We included Vanguard because clients who invest between $50,000-$500,000 have access to a team of financial advisors. Those with accounts over $500,000 will have a dedicated advisor.

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It’s important to add up all of this time and factor it into your compensation, so you can get an accurate picture of how much money you are trading for your time. Remember that money in infinite, but time is finite. You can always go out and make some extra money, but you’ll never get back you time. How much are you willing to trade your life for?
You can absolutely use websites like eBay and Etsy! Try listing some items and making a professional Facebook page for yourself with a link to your eBay/Etsy pages. Then share the information with friends and family and get them to spread the word to people they know. Also, make sure that you have detailed descriptions and multiple pictures with anything you list online. This will help your listing show up in keyword searches, and you are more likely to sell something if the buyer knows a lot about what they are looking at.
Shepper says users are fully insured, and it takes precautions to ensure your safety, including reviewing every booking that it receives. It may be worth taking extra steps too, such as telling a friend or family member where you'll be and arranging to contact them after you finish the job. Remember to trust your instincts – if you feel uncomfortable with any job, simply leave. 
I hope to end up somewhere in the “Blockbuster FI” category eventually, only because I am a worker. I like starting businesses, and making sales, so I’ll probably always be doing something creative. I just want to get rid of the fear and pressure that comes with being dependent on money. The fear of losing a big client, or the pressure of having a competitor undercut me with prices, and always being on edge. Once I am FI, I can just have fun running businesses and really not care about the money I make. That’s the dream I am striving for. My first quarter-million is in the bank, and generating me $1000 passive income a month, so I think the hardest stage of getting it going is over. Now I just have to keep building it. Always enjoy stopping by. Billy B.
Awesome article. I am personally a fan of affiliate marketing. It’s a great way to leverage someone else’s business and start your own. I’ve been a part of an affiliate program for a while now where I’m earning 25% commissions on sales and it has truly been a blessing as far as my finances are concerned. Passive income is definitely they lifestyle to live. I’m hoping to upgrade soon to the 35% commission tier so that I can make enough to quit my 9-5 and really be free to live the life I want. Check it our here if your interested (queensmarketclothing.com); it’s only $10 to get started and the company is super helpful in helping you get started and marketing the products.
This can be a little easier said than done, but if you have a large social media following, you can definitely earn money promoting a product or advertising for a company. You can even combine this with different marketing campaigns if you are an influencer and have your own blog (advertisement + affiliate income). This is how many bloggers make money! Again, it is not 100% passive but once set up correctly and then scaled, can be surprisingly lucrative.

I’m glad I started looking at this when I was in my mid-twenties more closely, but of course, now I wish I knew all this info when I was even younger. So don’t wait, don’t put it off, start right now. And while I may not be able to retire next year or even in five years, I am well on my way to being financially free well before the average retirement age. Let’s do it!

How can I become financially independent fast


Tutor students. Many families prefer the flexibility of using an online tutor. Depending on your background, you could be simply helping a child with homework or providing college-level support. You need to have your own computer and high speed internet. Experience required differs among companies. Some require “strong experience,” while others require a specific educational background. However, most companies do require a college degree.

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Chris Hogan is a #1 national best-selling author, dynamic speaker and financial expert. For more than a decade, Hogan has served at Ramsey Solutions, spreading a message of hope to audiences across the country as a financial coach and Ramsey Personality. Hogan challenges and equips people to take control of their money and reach their financial goals, using The Chris Hogan Show, his national TV appearances, and live events across the nation. His second book, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—And How You Can Too is based on the largest study of net-worth millionaires ever conducted. You can follow Hogan on Twitter and Instagram at @ChrisHogan360 and online at chrishogan360.com or facebook.com/chrishogan360.
As you start regularly putting out content, you’ll hopefully start to build a bit of an audience. But to start seeing real money from YouTube you need to market your videos elsewhere. Share your channel on Twitter and Facebook. Distribute videos anywhere else you can think of. Also, interact with comments and build a community around the videos you’re making so people will share it with their friends.

It’s not the sort of online money making opportunity that’s covered in glory, but everyone needs a set of eyes to make sure the numbers add up at the end of the year. Every business and most individuals need someone to help prepare tax returns, especially time or resource-strapped small business owners. The Income Tax School provides an array of training programs that'll certify you with tax prep in as little as 10 weeks, and once tax season rolls around you'll be able to charge an average of $229 per return as a freelance tax preparer with this side business idea, reports CNBC.
I personally do not consider any capital gains or paper gains as part of my retirement income. Any capital gains are one off. It’s safer this way because it’s important to focus on building recurring passive income sources. Hopefully, my gains from my rental house sale in 2017 will be properly deployed to earn future income. But I’m not touching those gains for spending.
This is a level of FI that I’ve been trying to achieve since I was 30 years old. I decided back then that an individual income of ~$200,000 – $250,000 and a household income of ~$300,000 was the ideal income for maximum happiness. With such income, you can live a comfortable life raising a family of up to four anywhere in the world. Given I’ve spent my post college life living in Manhattan and San Francisco, it was only natural to arrive at much higher income levels than the US household median. Remember, half the country live in more expensive coastal cities.
21. Facebook – Facebook swap shops are great for selling things locally. It’s like CraigsList, but a little easier. You simply search for swap shops in your area and ask to join the group. Once you’re in, take a picture of the item, write a quick description with the price and post it. It doesn’t get much easier than that. You can generally expect to get about what you would get at a yard sale, maybe a little more.

As discussed, the only way to take advantage of investment opportunities is to have the money to invest. The reality of successful investing is that there is a certain point where you reach critical mass, and the returns generated on your assets can change your life (e.g., earning a 10 percent return on $10,000 is only going to net you $1,000 before taxes—hardly earth-shattering, but the same return on a $1,000,000 portfolio is $100,000, which has far more utility despite requiring the same effort and research).


The formula-lover in me wonders about doing something like this for defining these levels based on the avg income of cities. Your definition of “blockbuster FI” is being able to live anywhere in the world, which could be the point – but the low end of blockbuster could be wherever in the world you want to live. I like that idea of planning for options.

So many people dream of writing a book, but never go through with it. Yet no matter what, I’m sure you have experience and value you could give through writing a book. By packaging your skills and knowledge into a downloadable eBook that helps people learn a skill, advance their careers, or start a businesses, you can change someone’s life and even make good money online. You'll just need to employ an easy tool like Sellfy in order to quickly sell PDF files (like an eBook) to your readers.

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One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.
This might be one of the most important tips when it comes to financial success. Find a mentor or mentors and really pay attention to everything they do. Even if you are unsure if they will work with you, reach out and ask as many questions as you can. You will likely be really surprised by how much older experienced people are willing to teach and help you.

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Well I do when its cold…spent 5 weeks last year visiting Oahu, Kauai, Maui, and the Big Island, 2 weeks sailing in the Bahamas, a week driving the French Riviera, a week hiking the Tetons, and spent Christmas through new years in Costa Rica. Off to Florida next week, then Turks and Caicos next month…haven’t thought too much farther ahead than that. Still no better place on earth to spend summers than on a big lake in the Midwest surfing everyday, anchoring on the sandbar for some sunshine and sunset boat rides or just sitting on your dock watching perfect sunsets over the water…and $100k a year spends like $300k on the coasts. Hopefully people don’t figure it out I’d hate for it to get spoiled with the crazy crowds.
More than half a billion products are sold on Amazon every month, making it an incredible opportunity to make money online. But, like everything else that involves making money online, you have to do quite a bit of work to earn it. One option on Amazon is to find products that are already made and buy and sell them at a discount. For example, you could research generic products such as clocks, keychains and mugs to attach to your brand.
28. Subscription – If you think of something valuable (newsletter, online magazine, etc.) that you can consistently offer on a certain basis (weekly, monthly, etc.), you may want to offer a subscription service. This could be a fee charged each time your product is sent out or on a monthly basis. Either way, this has to be something that your customers can only get by subscribing to your website.
If you’re a skilled worker in a specific niche, like marketing, design, or software development, there are specialty marketplaces that cater just to you. These are amazing places to make money online as you know that the people visiting them are looking specifically for the skills you have. Check out places like 99Designs or Dribbble for designers, Cloudpeeps for marketing and SEO professionals, and TopTal, Crew, or Gigster for high-level software developers. Once you've built up your development skills, you can begin building a brand for yourself as a higher-value consultant and start charging brands for larger projects like implementing an entire WordPress security overhaul or migrating a website from http to https.
I want to thank you for the great article. I was looking online for some inspiration to re-ignite my side-hustle and breathe some new life into my existing efforts. Your ideas here are fabulous and I’ve made notes on seven of them. I already have a lot of the concepts started, but you have given me the spark I was looking for to keep moving forward. Thanks for the help!

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Also, how at the age of 24 could I even begin come close to how much money I would need for the rest of my life? As it turned out, I needed a lot less than I thought and that I was completely in control of how much I would need. While you can’t control all of the variables (like inflation and investing returns), you can control most of the variables (how much you spend etc.).
The figures are very optimistic! Even though I technically could “retire” with only $200K saved up, I’m going to continue working until 2015 and should have quite a bit more than that, when all’s said and done. I just wanted to compute the minimum amount it would take to cover my essential expenses to see how little I would actually need to survive. You’re definitely right that it’s a great feeling seeing how attainable FI really is!
25. Products – You can create your own product, such as an ebook or computer software. You would then use your blog as a promotion tool to get people to buy your product. As long as you create a legitimate product with a whole lot of value, you should be able to get some buyers, but like everything else with a blog, you’ll need the traffic to get the sells.
When you say $250k-300k in annual passive income.makes life really really good, are you referring to gross income or after tax income. In fact, some clarity around before or after tax income levels would be helpful for all the dollar figures in this post. The new tax structure significantly affects people in the Blockbuster FI cayegory, mostly on adverse ways, so.i am curious about of the targets change based on before or after tax income, especially of one does not have a small business owner properties to use for tax write offs. Thanks

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You’re right though that $50 per month probably won’t be sufficient in perpetuity. The numbers in this article serve as a baseline for what I need to survive. This is how much I’ll need to quit my job and live the life I plan on living immediately after FI. If 5 years after FI I decide that I really want to live in America full time again, I’ll have to increase my health insurance budget by either decreasing some of my other costs or by earning more money through part-time work that I enjoy. The main message of this post is that you don’t necessarily have to wait until every possible future expense is covered…just make sure you can survive in a lifestyle you want to live and then if you need to earn more money to change or enhance that lifestyle, you can do so. A lot of people think, oh I need $2.5 million to retire so that every possible expense that I could incur will be covered. That may be true for someone retiring in their 70s but for someone in their 30s, I say, cover your essentials, start living a free life as soon as possible, and earn more if you want to change your lifestyle later.

Hang in there, Adam. I’m in the similar boat as you. I’m 51, looking to retire @55 when my son goes to college (his tuition is already saved in separate 529 account). @4% withdraw rate, we have enough assets to generate passive incomes of $250K+, and our annual living expense is <$100K. Neither me or wife have pension or medical coverage, but we do have 401K and some prior HSA savings.

Therefore, they have no idea what it takes to achieve financial independence and buy into the great myth that good students go further in life. They pitifully measure analytical intelligence only and not the creative intelligence that is responsible for sparking innovations, societal advancements and the opportunity to craft solutions in niche markets that everyone else misses.

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