By Yes, you can achieve financial independence, even if it appears difficult. While the trip may not be easy, these are the measures to get things started correctly.
With increasing inflation, a worsening housing crisis, and today’s economic challenges, it’s no surprise that many individuals question whether financial independence is even attainable.
According to a study conducted by digital personal finance business Achieve, only one in every ten Americans believes they have accomplished their goals.
The odd thing is that, depending on who you question (or follow online), financial independence can be laughably simple or entirely out of reach.
To settle the score, we talked to successful entrepreneurs who had achieved this elusive aim.
Kiplinger’s Adviser Intel, formerly known as Building Wealth, is a carefully curated network of reputable financial professionals who give expert advice on wealth accumulation and preservation. Contributors, such as fiduciary financial planners, wealth managers, CEOs, and attorneys, offer practical guidance on retirement planning, estate planning, tax strategies, and more. Experts are encouraged to contribute and do not pay to be featured, so you can be confident that their advice is genuine and useful.
Based on their advice, we compiled a list of four actions to help you get your financial life in order. There’s no fluff or gimmicks—just realistic, reality-based guidance.
1. Decide what financial independence means to you.
Financial freedom is a highly personalised term.
- For some, wealth includes a mansion, fancy automobiles, and a yacht.
- For others, it means the ability to travel the world.
- For many, it is spending quality time with their children without stress about the future.
Adrian Iorga, founder and president of Stairhopper Movers, shares this philosophy: “In my line of work, I meet people from all walks of life — families, students, business owners, and retirees.”
“If you ask a hundred people what financial independence means, you’ll get a hundred different responses. It’s not a one-size-fits-all aim; it’s as unique as the path that led you there.”
In general, financial independence entails having enough money to maintain yourself and your family while still pursuing your aspirations.
If you don’t know what you want, it’s important to have the time, mindset, and space to consider and experiment with new ideas.
According to the 2025 Goldman Sachs Asset Management Retirement Survey & Insights Report, 42% of working Americans live pay cheque to pay cheque, making financial independence appear unachievable.
However, with the appropriate objective and solid money management skills, even unattainable aspirations can become a reality.
The first step is to determine what financial independence means to you. It’s not a set aim; it can change as your abilities develop. The goal is to begin with a clear, realistic vision that will guide you on the right path.
2. Create systems that increase wealth.
Unless you have a large inheritance or a trust fund, financial independence will not happen overnight. However, you can ensure that it will happen in the future by developing mechanisms that grow wealth incrementally.
Here’s a list of the five most efficient systems that anyone can use without too much difficulty:
Automate your savings and investments. Pay yourself first, and automate your finances. Set up automatic transfers to savings and investment accounts as soon as your pay cheque comes.
This ensures that your savings and investments are consistent and that you do not have to think about them.
Give your money a purpose. Use numerous accounts or budgeting tools to give each dollar a purpose, such as paying bills, investing, having fun, or setting long-term goals. This makes it more difficult to overspend on unneeded items while still enjoying pleasant activities and shopping.
Build compounding machines. Low-cost index funds, retirement accounts, and even real estate can expand quietly behind the scenes.
Your resources will expand if you invest regularly, reinvest dividends, and allow time to work its magic.
“In manufacturing,” RapidDirect CEO Leon Huang adds, “success comes down to precision and consistency—small, exact steps repeated over time.” Creating financial independence works in the same way. It’s not about making one giant jump, but about taking small, consistent steps that lead to long-term success.”
Protect yourself from negative consequences. Wealth systems collapse in the absence of safety nets. Maintain an emergency reserve, carry appropriate insurance, and avoid high-interest debt if it was radioactive.
Increase income streams. Diversification, or having many income streams, is the ultimate wealth-building strategy. If one stream fails, others will help you locate a replacement or rearrange your finances.
These streams can come from a variety of sources (for example, salary, rentals, dividends, royalties, and so on), but Edward White, head of Growth at beehiiv, believes that content production is also a fantastic opportunity: “Content creation has become one of the most potent ways to earn passive income. From newsletters and courses to podcasts and communities, every piece of content may continue to benefit you long after it is published.”
3. Reduce your debt and expenses.
Everyone desires financial independence, but only a few put out the effort to get it. You may have high-income pals who must ask relatives and friends for a short-term loan to pay rent or purchase groceries.
To achieve financial freedom later in life, you must be disciplined in managing your money today. This includes avoiding debt (as much as possible), living within your means, and carefully considering every large purchase.
Looking for expert advice on how to increase and keep your wealth? Sign up for Adviser Intel (previously Building Wealth), our free twice-weekly newsletter.
You don’t have to live as Ebenezer Scrooge did before the Christmas ghosts visited him. Still, it’s a good idea to cut back on unnecessary purchases and keep track of how much and where you spend your money.
Stanislav Khilobochenko, Clario’s vice president of customer services, also makes an essential issue that most of us overlook: “With cybercrime on the rise, remaining secure online and adopting the proper cybersecurity precautions should also be part of your financial emancipation strategy.
“When you don’t take unnecessary risks online, you can prevent losses that may set you back months or even years.”
4. Plan for the long term.
Don’t sacrifice your time or health for money.
Most of us are encouraged to work hard in our youth and save so that we can have a comfortable retirement. Reality may contradict this lesson.
A recent Gallup poll revealed that only 59% of individuals had a retirement savings strategy. Only half of those anticipate being able to live comfortably on their savings.
Then there’s the health concern. According to the CDC’s National Centre for Health Statistics, around 24% of American people aged 65 and older have fair or poor health.
Those who are in reasonably decent health may nonetheless be coping with chronic diseases, including high blood pressure, type 2 diabetes, and obesity.
“Financial independence means nothing if your health isn’t there to enjoy it,” says Raihan Masroor, founder and CEO of Your Doctors Online. “Building riches is vital, but not at the expense of your health or mind. “Good health is the foundation that makes everything else possible.”
This is why you must plan your financial freedom for the long run. Many strategies allow you to accumulate riches without jeopardising your health or time, but only if you have the discipline to limit your expenditure.
