Achieving financial freedom or independence, or security is a goal that many people have longed for, especially in today that many are starting to complain that the work environment is becoming more boring and hectic. Without relying on work or another source of income, it is the condition of having enough money and resources to cover your expenses. According to the statistics of the States Census Bureau released by Pew, only 24% of young people at the age of 22 are considered financially independent, compared to 32% of the same population in the 1980s.

Pew data also claimed that 45% of adults aged 18 to 29 admitted they still get financial help from their guardians. From the report, 59% of guardians/parents also confessed that they still support their adult wards. So, with the facts mentioned above, there is a dire need to encourage people, especially young adults to consider being financially independent.

Here are some actions you can take to move closer to financial security/independence.

1. Establish Definite Financial Goals

Setting specific financial goals is the first step toward achieving financial independence. This entails calculating how much you must invest or save to pay your bills without the help of a job or another form of income. Setting a deadline for completing these objectives can help you stay motivated.

2. Create a Budget

Developing a budget is crucial to becoming financially independent. You can keep track of your earnings and find areas where you may save savings. To help you increase your wealth, you should set aside a sizeable percentage of your salary each month and invest it carefully.

1. Pay Off Debt

Getting out of debt is essential to become financially independent. Credit card debt, for example, can strain your finances seriously and make it difficult to put money aside and invest in the future. Make a strategy to pay off any outstanding bills as soon as possible, beginning with the loans with the highest interest rates.

2. Build Passive Income Streams

You can accelerate achieving financial independence by creating passive income streams. This can involve launching a business, buying real estate or stocks, or producing digital goods. You can generate money from passive income streams without working for them directly, which gives you greater freedom and flexibility.

3. Stay Disciplined

Discipline and consistency are necessary to achieve financial freedom. Even though it's challenging, you must be prepared to make compromises and adhere to your spending plan and financial objectives. Remind yourself of the advantages of financial independence, such as following your hobbies and living life on your terms, to stay motivated.

How Much Money Do I Need For Financial Independence?

No amount of savings is required to be tagged financially as independent. And as against the popular opinion that the amount of savings a person needs to determine their level of financial freedom, savings play less role. Instead of measuring it with one's savings which are often calculated with the amount of cash in the bank, their investments should be the benchmark for determining the level of financial independence.

Again, it is not easy to develop a particular measurement formula for everybody; geography and economic environment have a significant role to play here. For example, a million-dollar investment in the United States can be more than enough to be tagged an 'average' in some African countries – but the same cannot be said should the current monetary rating in those countries be used to judge those in the United States.

Financial independence is earning an annual income of at least 150% of the federal poverty level. However, experts believe an individual should be considered financially independent when their yearly income is not less than 150% of their country's poverty level. But if we should use the dollar value, a $500,000 "in investment" is enough to live a healthy life with financial freedom.

Conclusion

As a result, gaining financial independence is a long-term objective that calls for meticulous preparation, self-control, and a lot of effort. You can work towards financial independence and have a more secure and happier financial future by setting clear economic objectives, making a budget, paying off debt, developing passive income streams, and practicing discipline

（Writer：Juliy）