PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

Obviously, every private investor's goal is to reach a point of financial independence, where they no longer have to "work for a living", but can live off the return from their investments. The first level of financial independence is defined as: The point at which your income from your investments is equal to or exceeds your income from your salary. It is only at that point that you begin to become independent of the need to work for a living. If you can save 10% of your gross monthly salary and invest it at a return of 30% per annum or more, you will achieve the first level of financial independence in less than ten years. To make these calculations for yourself, go to our Financial Freedom Calculator at: <a href="/index.php/financial-freedom-calculator/">https://www.pdsnet.co.za/index.php/financial-freedom-calculator/</a>.

Edit Glossary Term