With high inflation, a worsening housing crisis and today's economic hurdles, it's no surprise that many people doubt financial independence is even possible.
A study by digital personal finance company Achieve found that only 1 in 10 Americans believes they've actually achieved it.
The funny thing is that, depending on who you ask (or follow online), financial independence is either ridiculously simple or completely out of reach.
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To settle the score, we spoke with successful entrepreneurs who managed to achieve this elusive goal.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Based on their insight, we put together a list of four steps that can help you get your financial future in order. No fluff, no gimmicks — just practical, reality-based advice.
1. Decide what financial independence is to you
Financial independence is a deeply personal concept.
- For some, it means a billion dollars in the bank, a huge mansion, two luxury cars and a yacht
- For others, it's having the resources and freedom to travel the world
- For many, it means having time to spend with their kids without worrying about the future
Adrian Iorga, founder and president at Stairhopper Movers, agrees with this philosophy: "In my line of work, I meet people from every walk of life — families, students, business owners, retirees.
"If you ask a hundred of them what financial independence means, you'll hear a hundred different answers. It's not a one-size-fits-all goal; it's as personal as the journey that gets you there."
As a general rule, financial independence means having enough money to support your lifestyle and family, while also pursuing your dreams (doing what you want).
If you don't know what you want, it means having the time, mindset and space to think about and try new things.
When you live paycheck to paycheck, as 42% of working Americans do, according to a 2025 Goldman Sachs Asset Management Retirement Survey & Insights Report, financial independence seems impossible.
But with the right goal and some good money-management skills, even impossible dreams become possible.
Your first step is to decide what financial independence means to you. It's not a fixed goal; it can evolve as your skills improve. The key is to start with a clear, realistic picture so you have a direction to move toward.
2. Create systems that build wealth
Unless you're due for a big inheritance or have a trust fund, financial independence won't come overnight. But you can make sure it will happen sometime in the future by creating systems that build wealth piece by piece.
Here's a list of the five most efficient systems that anyone can use without too much of a hassle:
Automate saving and investing. Pay yourself first and automate your finances. Set up automatic transfers to a savings account and investment accounts the moment your paycheck arrives.
This way, your savings and investing will be consistent, and you don't have to think about it.
Give your money a role. Use multiple accounts or budgeting apps to give every dollar a purpose: bills, investing, fun or long-term goals. This makes it harder to overspend on unnecessary things without depriving yourself of fun activities or shopping.
Build compounding machines. Low-cost index funds, retirement accounts, even real estate can quietly grow in the background.
As long as you invest regularly, re-invest dividends, and let time do the heavy lifting, your resources will grow.
"In manufacturing," RapidDirect CEO Leon Huang, says, "success comes down to precision and consistency — small, exact steps repeated over time. Building financial independence works the same way. It's not about one big leap, but about steady, disciplined actions that compound into lasting results."
Protect your downside. Wealth systems collapse without safety nets. Keep an emergency fund, carry insurance that makes sense and avoid high-interest debt like it's radioactive.
Grow income streams. The ultimate wealth-building system is diversification, meaning you need several income streams (that old adage about the eggs and the basket). If one stream collapses, others will support you while you find a substitute or restructure your finances.
These streams can come from a variety of sources (for example, salary, rentals, dividends, royalties, etc.), but according to Edward White, head of Growth at beehiiv, content creation is also a great opportunity: "Content creation has become one of the most powerful ways to build passive income. From newsletters and courses to podcasts and communities, every piece of content can keep working for you long after it's created."
3. Reduce debt and expenses
Everyone wants financial independence, but only a few put in the work to achieve it. You might have high-earning acquaintances who have to ask family and friends for a short loan to pay rent or buy groceries.
To get freedom later in life, you need the discipline to manage your money in the present. This involves staying away from debt (as much as possible), not living beyond your means and thinking seriously about every major purchase.
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You don't have to live like Ebenezer Scrooge before the Christmas ghosts paid him a visit. Still, it's wise to cut back on nonessential expenses and know exactly how much you spend and where.
Stanislav Khilobochenko, vice president of customer services at Clario, also raises an important point that most of us don't consider: "With cybercrime on the rise, staying safe online and taking the right cybersecurity steps should also be a part of your financial freedom 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 trade your time and health for money.
Most of us are taught to work hard in our youth and save, so we can enjoy a blissful time in retirement. Reality can contradict this lesson.
A recent Gallup study found that only 59% of adults have a retirement savings plan. Of those, only half expect to live comfortably with what they've saved.
Then there's the health issue. About 24% of American adults age 65 and older are in fair or poor health, according to the CDC's National Center for Health Statistics.
Those who have relatively good health might still be dealing with such chronic conditions as high blood pressure, type 2 diabetes or obesity.
"Financial independence means nothing if your health isn't there to enjoy it," notes Raihan Masroor, founder and CEO at Your Doctors Online. "Building wealth is important, but not at the cost of your body or mind. Good health is the foundation that makes all the rest possible."
This is why you have to plan your financial independence for the long term. Many systems allow you to build wealth without sacrificing your health and time, but only if you have the discipline to control your spending.
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