As we celebrate the 250th anniversary of our country’s independence, I’m always reminded of financial independence.
The odd thing is that when people talk to me about financial independence, the conversation usually turns to retirement. I’m not sure why ‘retirement’ became the benchmark. Some of the coolest people I know are not retired but are ‘financially independent.’
I think society teaches us that financial independence means reaching a magic number, leaving work forever, and spending your days sitting on a beach somewhere with an umbrella and a fruit drink in hand.
I have never viewed it that way.
What is Financial Independence?
To me, financial independence has always been about options. It is about having enough income-producing assets that money is no longer the deciding factor behind every major decision.
It means having the ability to spend more time with family, travel when opportunities arise, and pursue projects that interest you. Heck, years ago it just meant being able to pay a bill…and not having to wait for the ‘check’ to come in to cover it.
I want to work because I WANT to work — not because I HAVE to.
Don’t get me wrong: no matter what you do, there are parts of it you don’t like. But I think you should like most of it.
Like many investors, I have spent years looking at different ways to build wealth. Stocks, real estate, businesses, and alternative investments all have their place. I read a ton of books and went to a ton of seminars. Each area comes with advantages and disadvantages. But I later learned that there does not have to be a single path to solve everything.
That is one of the reasons I became interested in real estate notes.
Utilizing Notes to Reach Financial Independence
What attracted me to the note business was the combination of cash flow, flexibility, and real estate.
Unlike rental properties, I wasn’t interested in dealing with tenants, maintenance issues, or late-night phone calls about broken water heaters. I liked the idea of being connected to real estate while focusing on the income stream rather than managing the property itself.
I also loved the flexibility and the numbers (I always say I hate math but like money).
Over the years, I have found that many people are surprised to learn how large the seller-financing market is. Most investors spend their time watching stock market headlines. At the same time, our entirely different segment of the real estate industry continues to operate quietly in the background (and we are ok with that). As we reveal in our annual Seller Financing Industry Report, seller-financed transactions represent billions of dollars in activity every year —and that creates opportunities for investors willing to learn the business.
One of the most common questions I hear is, “Why would I invest in notes when I can just invest in the stock market?”
The answer depends on the individual investor. I own stocks. I own notes. There is room for both. In fact, I recently wrote an article comparing notes and stocks because I think too many people approach investing as an either-or decision.
The bigger lesson is that financial independence rarely arrives all at once.
Financial Independence Takes Patience and Good Decisions
Most people don’t wake up one morning and discover they are financially free. It happens gradually. They acquire assets. They reinvest profits. They make good decisions more often than bad ones. Then they repeat that process for years. It is almost boring if you are doing it right.
That may not be as exciting as the stories you see on social media, but it is how I think wealth is built in the real world.
Getting Started Building Wealth
Looking back, one of the biggest mistakes I see new investors make is waiting until they feel they know everything before getting started. They spend months, sometimes years, trying to find the perfect investment, the perfect market, or the perfect strategy.
I know that because I was one of those people waiting to get all my ducks in a row. [Spoiler alert: I’m not sure ducks are ever totally in a row…so don’t wait.]
The truth is that every experienced investor started out knowing very little. At some point, they decided to learn. If you are curious about note investing, that is exactly where I would recommend starting. Not with a purchase. Not with a big commitment. Just with education.
That is the reason we created the free Discovering Notes Mini-Course. It introduces how notes are created, why investors buy them, how cash flow works, and where opportunities exist in today’s marketplace.
Whether notes ultimately become part of your investment strategy or not, understanding the asset class will make you a more informed investor.
Embrace Independence Now
Financial independence is not really about retirement. It is not about luxury cars, oversized houses, or social media photos — it is about having choices.
The ability to spend your time where you want. The ability to pursue opportunities when they appear. The ability to make decisions based on what is best for you and your family rather than what is necessary to pay next month’s bills.
For me, that has always been the goal.
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