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In a few days, The Bahamas will celebrate 52 years of independence. Each year around this time, Bahamians take stock of what the country has achieved since we cut our colonial ties more than half a century ago; but this is also a good time for individuals to take stock of their personal goals and achievements. In this article, we will focus on examining our financial goals and how best to achieve financial independence.

Let’s start by examining what financial independence is and how it differs from other forms of financial success. For the average working-class person, the epitome of financial success is being able to afford a lifestyle and activities uninhibited by financial concerns. This may look like maintaining employment, but being able to afford significant purchases, pursue passion projects, or take a hiatus from working without financial stress.

Financial independence takes it a step further. It means you are no longer dependent on a job or active income for financial survival, and you’ve reached a point where your assets like savings or investments generate enough income to cover all of your expenses and longterm needs.

In short, financial independence often relies on passive income streams (like investments that pay dividends or interest; or rental income), while financial freedom can be achieved with a combination of active and passive income sources.

While both provide a sense of security and peace of mind, they can also both seem out of reach - particularly in today’s economic climate.

Parallels Between National and Financial Independence

When The Bahamas gained independence in 1973, it marked a significant step toward selfgovernance, the redefinition of our national identity and charting our own economic path. In many ways, personal financial independence mirrors this journey. It’s not just about having more money; it’s about having complete agency over your time and your life. It’s about not being at the mercy of mounting debt, unstable employment, or the rising cost of living; and more about becoming empowered by the creation of a financial safety net like a plump emergency fund, a sound retirement plan and a diverse investment portfolio.

But just as an independent country needs a national development plan, an individual also needs to develop a plan to achieve financial independence.

Lessons from National Independence That Apply to Your Finances

Learn From Your History - Just as we reflect on where our country came from—our challenges, setbacks, and victories—your financial journey should start with an honest review of past habits. Did debt hold you back? Did a lack of savings put you in vulnerable positions? Use your history to fuel better choices ahead.

Create a Vision - Independence without a vision is chaos. The Bahamas had to determine what kind of nation it wanted to be post-1973. Likewise, financial independence requires a clear vision of what you want your future to look like. What does financial freedom mean to you? Early retirement? Owning your home? Starting a business? Set your goals and write them down.

Make Sound Investments - Nations invest in roads, schools, and energy to support long-term growth. Financially, this means investing in your own infrastructure: an emergency fund, retirement savings, insurance, and upskilling for better income opportunities. These systems serve as your financial foundation.

Remember Independence Doesn’t Mean Isolation - The Bahamas still maintains international partnerships and collaborations that help it grow. Financially,this means you don’t have to go it alone. Seek professional advice, join financial literacy groups, and surround yourself with people who support your goals.

Pressing Onward

The Bahamas, even 52 years later, is still refining its systems, adapting to global changes, and striving for greater selfsufficiency. Similarly, financial independence is a journey that must be maintained through continuous education, adaptation, and selfevaluation.

Use this Independence Day to reflect on not only our national progress, but your personal financial goals.

So, as we raise our flags to celebrate 52 years of independence, it’s also worth asking ourselves; how independent are we really, financially, and how do we get there?

CFAL is here to help.

If you need additional help, feel free to reach out to us for a Financial Planning Session. Our Certified Financial Planners are here to assist you with your budgeting, saving, and investing needs.

T: (242) 502-7010 | E: info@cfal.com | W: www.cfal.com

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