Talk:Financial independence

"Stop Preaching for Financial Independence"
Removed a paragraph, the subject of which cited a self-published blog article by an individual with no credentials in economics (WP:BLOGS). The remainder of the paragraph, while properly sourced, was dependent upon the blogger's theory for its relevance.

This edit is merely based on Wikipedia standards, and not a commentary or criticism of the economic question raised in the paragraph: whether or not financial independence for more than a small portion of a population is ever achievable. A reference to a reliable source to support restoration of the paragraph would be welcome. LineChaser (talk) 23:38, 10 July 2011 (UTC)

Different definition of Financial Independence?
"Financial Independence" also separately refers to people who are not dependent on other people for money, rather than referring to people who receive enough passive income to live off of, as the article states. It seems the former is the more common in the media, whereas "independently wealthy" refers to the latter. Perhaps this article should be changed to make note of these differing definitions.

Source: https://www.pnc.com/webapp/unsec/Requester?resource=/wps/wcm/connect/27327380483930d785ecc7993f089552/2011_0906_PNCFinancialIndependenceFindings.pdf?MOD=AJPERES&CACHEID=27327380483930d785ecc7993f089552 — Preceding unsigned comment added by 24.34.201.197 (talk) 23:57, 14 October 2012 (UTC)


 * Yeah, we need a better definition or a better source for the definition. Here is another, in another context: IATE. --Nemo 12:05, 12 July 2016 (UTC)

Bad math
Calculation does not appear to include taxes. — Preceding unsigned comment added by 140.254.45.32 (talk) 17:02, 3 December 2014 (UTC)
 * Fixed. The article could use more work in general. Martinp (talk) 09:33, 23 May 2016 (UTC)
 * Hello - Tax calculations are subjective in nature and can vary by individual. Also, since we expect the global population to read this article, it can be tricky to illustrate the effect of taxes. I welcome your ideas on how best to at least explain a general concept of how financial independence can also encompass tax planning. It would be helpful if you can provide some additional insight.--NishantMehta1989 (talk) 20:15, 16 September 2023 (UTC)

More bad math
The section Calculation gives this formula, with no citation:


 * $$ \text{Years Until FI} = \frac{\frac{\text{Yearly Expenses}}{\text{Withdrawal Rate}} - \text{Net Worth}}{\text{Yearly Earnings After Tax} \cdot \text{Savings Rate}} $$

This is nonsense. First, the formula includes no rate of return on the assets, either before or after retirement. Second, it assumes a constant rate of withdrawal from the assets, which would lead to declining actual amounts withdrawn as the asset balance shrinks; but expenses would not be declining. Third, the derivative with respect to the withdrawal rate in this formula is negative, whereas actually a higher withdrawal rate is going to run down the assets faster, so it will take longer to achieve financial independence. So for example in the limiting case of a zero withdrawal rate, which should give immediate financial independence, the formula says that independence comes after an infinite number of years. For these reasons, I'm going to delete this whole section. Loraof (talk) 22:24, 13 February 2017 (UTC)

External links modified
Hello fellow Wikipedians,

I have just modified one external link on Financial independence. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
 * Added archive https://web.archive.org/web/20110714182456/http://www.nightingale.com/ae_article.aspx?a=achievingfinancialindependence&i=217 to http://www.nightingale.com/ae_article.aspx?a=achievingfinancialindependence&i=217

When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.

Cheers.— InternetArchiveBot  (Report bug) 23:07, 30 September 2017 (UTC)

Fuck
Fuck-you-money redirects here, but not a word is mentioned about this in the article.

Early Retirement Extreme Quit Being Frugal
Early Retirement Extreme is linked as a reference, but the founder of the website has quit the lifestyle. If the lifestyle wasnt sustainable, should it be linked? — Preceding unsigned comment added by SargentCau (talk • contribs) 14:13, 28 March 2018 (UTC)
 * Per Wikipedia's policies sources should be reliable. While this is a published book, I was unable to verify if the book was published by reliable publishers. Based on the citations, the author seems to have listed his website as a source, which indicates the source is not independent of the subject. This source doesn't meet Wikipedia's policies and should be deleted. Please feel free to respond if anyone is able to verify the reliability of this source. I welcome feedback from other Wikipedians. Thank you.--NishantMehta1989 (talk) 19:45, 16 September 2023 (UTC)

Edits abruptly reverted with minimal explanation
My edits between October 31, 2018 and November 28, 2018 were abruptly reverted without explanation. Another user attempted to intervene (unsuccessfully) which produced the justification "do not allow blogs or spam." Would someone please explain the issues with my contributions and make suggestions for a subsequent course of action on this page? Thank you. FishTheFish (talk) 14:25, 19 December 2018 (UTC)

"Fuck-you-money" listed at Redirects for discussion
A discussion is taking place to address the redirect Fuck-you-money. The discussion will occur at Redirects for discussion/Log/2020 October 10 until a consensus is reached, and readers of this page are welcome to contribute to the discussion. 𝟙𝟤𝟯𝟺𝐪𝑤𝒆𝓇𝟷𝟮𝟥𝟜𝓺𝔴𝕖𝖗𝟰 (𝗍𝗮𝘭𝙠) 21:46, 10 October 2020 (UTC)

Organisations
I think that this article should also cover financially self-supporting or self-sustaining entities, i.e. of the type not funded by government money but set up by legislation, as there does not seem to be anything covering this concept. ("Self supporting" redirects to Self-sustainability). Laterthanyouthink (talk) 08:56, 14 May 2021 (UTC)
 * Hello - while I find your suggestion intriguing, I wonder what purpose it would serve. Can you provide some additional context on how coverage of financially self-supporting or self-sustaining entities would explain or illustrate the concept of financial independence? Can you share some examples? I wonder if charitable organizations can be considered self sustaining even though some may not be funded by the government. I appreciate your thoughts. Thank you.--NishantMehta1989 (talk) 20:04, 16 September 2023 (UTC)

Wiki Education assignment: Psychology of Financial Planning II
— Assignment last updated by NishantMehta1989 (talk) 18:21, 25 August 2023 (UTC)

Updated Reference for the book "Your Money or Your Life."
Updated the citation and reference for this book to reflect the latest 2018 version. NishantMehta1989 (talk) 00:47, 17 September 2023 (UTC)

New Section
Added a section on theoretical frameworks and factors influencing financial independence. This section presents an overview of theories that explain how financial behavior is influenced by values, attitudes, and biases. Also, provided few examples of biases and heuristics as governed by behavioral finance that can affect achieving financial independence.--NishantMehta1989 (talk) 04:32, 1 October 2023 (UTC)

Lead Section
Updated the lead section to explain the concept of financial independence.--NishantMehta1989 (talk) 04:33, 1 October 2023 (UTC)

Sources of income
Updated the section on passive sources of income to explain different sources of income.--NishantMehta1989 (talk) 04:54, 1 October 2023 (UTC)

Approaches to financial independence
Updated this section to explain the 4% withdrawal rate rule.--NishantMehta1989 (talk) 05:09, 1 October 2023 (UTC)