Describe the concept of "financial independence."

The concept of "financial independence" refers to a state where an individual has accumulated enough personal wealth that allows them to live comfortably without relying on traditional active income sources, such as a job. This means that one's investments, savings, or other passive income sources provide sufficient funds to cover living expenses, thereby freeing the individual from the need to work for basic necessities.

Achieving financial independence typically involves careful planning, saving, and investing, so that one's wealth generates enough income to support their lifestyle. This aligns with the idea that financial independence is not merely about having money but rather about creating a sustainable financial situation that offers security and freedom in one's life choices.

In contrast, the other options suggest different interpretations of financial independence that are not aligned with this fundamental definition. For instance, simply having the ability to spend without a budget doesn't equate to true independence if it leads to financial instability. A high-salary job, while potentially beneficial, does not guarantee that one will have enough wealth to be independent from work. Similarly, the requirement for multiple income streams indicates a strategy that may help achieve financial independence, but it is not a definitive characteristic of the concept itself.