What Does Financial Independence Mean to You?

I can’t wait to celebrate my Financial Independence Day! Have you ever thought about what your Financial Independence Day? The day when you are free from all debt? I know I have. I’m planning on celebrating that day at the end of 2009. We have a little less than $7000 to go in student loan debt.

What Will Financial Independence Mean for Me?

I get to decide where my money goes every month.

Right now $200 every month is marked for debt repayment. And extra money from my blog, pet sitting, or any other odd jobs my husband and I take on also goes to debt repayment.

When our debt is paid off, 100% of our money will go toward the things we decide to spend it on. More than likely it will go toward beefing up our emergency fund.

I can relax, knowing I’m indebted to nobody.

When we took on our student loan debt, we made a promise to pay it off. Sometimes it’s hard having that commitment hanging over our heads. What if something happens and we can’t pay? It doesn’t matter. We’re still obligated.

When our debt is paid off, we aren’t beholden to the bank anymore.

I will no longer pay the Stupid Tax (Interest).

Every month a portion of our student loan payment goes to interest, and it bugs me. That money isn’t working for us. It’s beefing up the bank’s coffers.

When our debt is paid off, no more money will be wasted on interest payments.

I can plan on the future, rather than remind myself of the past.

Every month when I make the student loan payment, I’m reminded of the graduate school program I never finished. I’m reminded of how my husband and I naively took out more student loans than we needed at a time we could ill afford it. I am reminded of how my husband and I had no clear goals for our lives.

When our debt is paid off, I can look toward the future. I can save a good emergency fund, so my husband and I are prepared in case of financial emergency. When our emergency fund is big enough, we can save money for a home of our own. And the list goes on. When we’re debt free, we’re free to put our goals for the future into action.

I can’t wait to celebrate my Financial Independence Day, and when I do, you’re all invited to celebrate with me! So mark your calendars now!

Are you looking forward to your Financial Independence Day? What will it mean for you?


By , on Jun 26, 2008
Lynnae McCoy I'm Lynnae, wife of one and stay-at-home mom of two. I'm committed to getting out of debt by being frugal with my choices in life.


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  1. “financial independence” isn’t defined by your debt but by your assets. So if you decide to go on vacation and put it all on a credit card, you’d have debt. But if you could pay off that credit card while living solely on the interest and dividend checks you get from your investments, you’re still financially independent. If you have to go to work to pay off that credit card – working either as an employee or as a business owner – you definitely aren’t financially independent.

    Financial independence is all about having PASSIVE INCOME. Having a job or having a business is active income.

    We are mortgage free and except for DD’s orthodontia bill we are debt-free. However, we are NOT financially independent because my husband still has to work. We can’t live off our investments (yet).

  2. Lee:

    That’s great that you’ll be paying off your debt next year! You’ve made some serious progress. I know what you mean about looking at the student loans and realizing that it was money supposedly wasted since you didn’t finish the program. I got my degree, but I’m not using it now. Just chalk it up to life experience, and really you wouldn’t be the same person today if you hadn’t had those experiences and paid for them. Also, you’ve got something to teach the rest of us when you get all the debt paid off.

  3. Congrats on paying your credit cards and other loans, Mel!

    Lynnae, your article is a great one! My Financial Independence Day is a little different, mostly centered around deciding how and when I work instead of working because I don’t have any choice. Although I enjoy my job now, I now that when my wife and I have children, I will want to spend more time with them than I do at work. ;)

  4. Mel:


    Funny that you should write about this today because I, just this afternoon, made the last payment on my credit card. We now have NO debt…zero…notta…not a mortgage, car loan, student loan, credit card…nothing.

    It feels sooooo good! Especially in this economy. Now we need to concentrate on building up savings, and then on to investing!!

  5. I love this, Lynnae. Just the motivational booster I needed to keep me going on the right track! I’m stumbling it.

  6. BRH:

    Congrats to you. I have no CC debt but plenty of student loans. It will take quite some time to get those taken care, but it’s the price of getting the education I want! Yikes! Great post.

  7. Marci:

    You’ve come so far! And the end is in sight!
    Hooray! I know what a great feeling that is.
    And you’ll sleep so much better with no worry
    about how to pay off debt over your heads!

    Not to mention a dirty word here – credit-card – but is there any chance a 0% or 1% low introductory transfer rate would help you on that interest problem? It would have to be the kind that stays that rate until that amount is paid off. Just a thought.

    Luv your term – Stupid Tax! LOL!!!So appropriate!

  8. Michelle H.:

    Hi Lynnae,
    I’ll be there to celebrate with you! Good going!
    I think once we are debt-free we’ll concentrate on getting our retirement built up.

  9. Avlor:

    Good for you! I think it’s great you have a plan and are following it through (beyond just paying off your debt). I’ll definitely give a hurrah the day you pay off your debt. ;)

  10. Rob in Madrid:

    the wife and I made a strategic decision to slow down our debt repayment to focus on savings. I found having only a 1000 in the bank to be to nerve racking particular as she travels alot for business and is always nervous if they will pay out in time.

    Also the fact that the bulk of our debt is loans means there’s little to be gained from paying them off early. On bank loans the interest is all front loaded.

  11. "Mo" Money:

    Good for you. I think that it is great that you make plans and set goals for the future. Keep up the good work.

  12. Brian Lang:

    I was lucky enough to become debt free last fall. The only problem I have now is staying that way. Perhaps you could start thinking about staying debt free and write some posts on that subject.

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