Financial independence is a goal that many people aspire to, but few achieve. It means having enough savings, investments, and income to cover your living expenses and desired lifestyle without relying on a job or anyone else. It also means having the freedom to pursue your passions, hobbies, and interests without worrying about money. But how do you get there? What kind of tools, apps and books can help you on your journey to financial independence?
In this article, we will share some of the best resources that can help you learn, plan, track, and optimize your finances and reach your financial goals.
Tools and Apps for Financial Independence
There are many tools and apps that can help you manage your money more effectively and efficiently. Here are some of the most popular and useful ones:
- Mint: Mint is a free app that helps you create a budget, track your spending, monitor your credit score, and get personalized tips to improve your finances. Mint also connects to your bank accounts, credit cards, loans, and investments, giving you a complete picture of your net worth and cash flow.
- Personal Capital: Personal Capital is a free app that helps you manage your wealth and plan for retirement. Personal Capital also connects to your bank accounts, credit cards, loans, and investments, but focuses more on analyzing your portfolio performance, asset allocation, fees, and retirement readiness. Personal Capital also offers paid financial advisory services for high-net-worth individuals.
- YNAB: YNAB (You Need A Budget) is a paid app that helps you create a zero-based budget, where every dollar has a job. YNAB also connects to your bank accounts and credit cards, but requires you to manually assign each transaction to a budget category. YNAB also teaches you four rules of budgeting that can help you break the paycheck-to-paycheck cycle and save more money.
- Topia: Topia is a free app that helps you track your progress towards financial independence. Topia allows you to input your income, expenses, savings rate, net worth, and desired lifestyle. Topia then calculates how long it will take you to reach financial independence based on various scenarios and assumptions. Topia also provides you with tips and resources to optimize your finances and achieve your goals faster.
- ChooseFI Calculators: ChooseFI Calculators are free online tools that help you calculate various aspects of your financial independence journey. For example, you can use the Expense Calculator to estimate how much money you spend per month or year; the FIRE Calculator to estimate how much money you need for the rest of your life; the Savings Calculator to estimate how much money you should save daily, weekly, monthly or annually; and the Compound Interest Calculator to estimate how much your money will grow over time.
Books for Financial Independence
There are many books that can inspire you and teach you about financial independence. Here are some of the most popular and influential ones:
- Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life by JL Collins: This book is based on a series of blog posts by JL Collins, who shares his wisdom and advice on how to achieve financial independence by investing in low-cost index funds. The book covers topics such as debt elimination, asset allocation, tax optimization, retirement planning, and more.
- Your money or your life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin and Joe Dominguez: This book is considered one of the classics of the financial independence movement. It teaches you how to rethink your relationship with money and align it with your values and life purpose. The book also provides a nine-step program that helps you track your income and expenses, calculate your true hourly wage, determine your enough point, invest for income, and achieve financial independence.
- Choose FI Your Blueprint to Financial Independence: Your Blueprint for Financial Independence by Chris Mamula, Brad Barrett, and Jonathan Mendonsa: This book is based on the award-winning podcast ChooseFI, which features interviews and stories from people who have achieved or are pursuing financial independence. The book covers topics such as defining your financial independence goal, creating a budget, saving and investing, optimizing your taxes, hacking your housing, travel hacking, side hustles, and more.
- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko: This book is based on a research study that reveals the common characteristics and habits of millionaires in America. The book challenges the stereotypes and myths about wealth and shows that most millionaires are frugal, hard-working, and self-made. The book also provides insights and tips on how to accumulate wealth and avoid lifestyle inflation.
- Rich dad poor dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki: This book is one of the best-selling personal finance books of all time. It tells the story of Robert Kiyosaki and his two fathers: his biological father who was well-educated but poor, and his best friend’s father who was a high school dropout but rich. The book contrasts the different mindsets and lessons that the two fathers taught him about money and success. The book also introduces the concept of passive income and the importance of financial literacy.
Conclusion
Achieving financial independence is not easy, but it is possible with the right tools, apps and books. These resources can help you learn, plan, track, and optimize your finances and reach your financial goals.
However, these resources are not enough by themselves. You also need to take action and implement what you learn, experiment and test what works for you and what doesn’t and lastly learn from your successes and failures and keep improving.
Remember that financial independence is not a destination, but a journey. Enjoy the process and celebrate your milestones. And most importantly, have fun along the way.