This is a very personal question that you should spend time thinking about. If you read through the website you will see that I talk a lot about defining what is really important in your life financially. Do you value building wealth over having designer clothing, nice automobiles, a daily trip to your favorite coffee house, and expensive vacations, etc.?
Create your own worksheet from my template and be specific about what is important to you. This will go a long way in helping you decide what financial independence means to you. Be honest with yourself so you don’t reach retirement and say to yourself, why didn’t I save more so I could have the flexibility to travel, etc. now that I’m retired.
My wife and I decided our definition of financial independence is to save now so the financial resources are available in case something happens to either of us and to have enough monthly income at retirement to travel without the worry of dipping into our net-worth. In order to accomplish