Make It Stack

Make it Stack #16 - What does "Financial Freedom" actually mean?

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Welcome to "Make it Stack" with Will Waterhouse, the podcast designed to demystify the world of saving and investing for young people.

In this episode, I unpack financial freedom. How can this actually be achieved?   

Topics Discussed/Key Summary:

  • Financial freedom can be defined as the situation where the natural yield on your invested capital is enough to sustain your desired standard of living.
  • The amount of invested capital required for financial freedom = Desired level of annual income divided by annual yield (% p.a).
  • There is a trade-off between yield and portfolio risk. Whilst a higher portfolio yield boosts the income your capital generates per £ invested, it is likely subject to greater risk and severe capital depreciation.
  • The yield on your portfolio can vary with market conditions. Be flexible with your spending levels.
  • Financial freedom is a phase in life where you are no longer trading your time for money. This is liberating as it allows you to focus on things which truly matter.

    • Follow me on Instagram: @cayton_analytics

    Website: https://caytonanalytics.com/

    Read my blog here!  

    This podcast is for educational purposes only and should not be construed as financial advice.

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    Make It StackBy Will Waterhouse