"How to Become Financially Independent in 8 Easy Steps"

Written by Daniel Carter | Senior Writer

Article last updated on September 5, 2023 at 09:10:43 AM EDT





Moving toward financial independence is an admirable and achievable goal. The key is to take the steps one at a time and focus on steady progress. Here are 8 steps you can take to set yourself up financially and become financially independent:



  • Step 1: Set an achievable goal. Choose a goal that you actually have the ability to reach. For example, a goal of becoming debt-free within a specific time frame is an achievable goal. It’s also important to decide how much money you need to achieve financial independence. Set a target level of income you’ll need to reach each month to achieve your goal.

  • Step 2: Create and stick to a budget. The best way to track your spending is to write down every penny you spend. Consider tracking your spending for a few months to get a better idea of your spending habits. Once you develop a budget, stick to it and make any necessary adjustments each

    How to Become Financially Independent in 8 Easy Steps


    Moving toward financial independence is an admirable and achievable goal. The key is to take the steps one at a time and focus on steady progress. Here are 8 steps you can take to set yourself up financially and become financially independent:



    • Step 1: Set an achievable goal. Choose a goal that you actually have the ability to reach. For example, a goal of becoming debt-free within a specific time frame is an achievable goal. It’s also important to decide how much money you need to achieve financial independence. Set a target level of income you’ll need to reach each month to achieve your goal.

    • Step 2: Create and stick to a budget. The best way to track your spending is to write down every penny you spend. Consider tracking your spending for a few months to get a better idea of your spending habits. Once you develop a budget, stick to it and make any necessary adjustments each

      How to Become Financially Independent in 8 Easy Steps


      Moving toward financial independence is an admirable and achievable goal. The key is to take the steps one at a time and focus on steady progress. Here are 8 steps you can take to set yourself up financially and become financially independent:



      • Step 1: Set an achievable goal. Choose a goal that you actually have the ability to reach. For example, a goal of becoming debt-free within a specific time frame is an achievable goal. It’s also important to decide how much money you need to achieve financial independence. Set a target level of income you’ll need to reach each month to achieve your goal.

      • Step 2: Create and stick to a budget. The best way to track your spending is to write down every penny you spend. Consider tracking your spending for a few months to get a better idea of your spending habits. Once you develop a budget, stick to it and make any necessary adjustments each month. A tool like Mint can help you create a budget and stick to it.

      • Step 3: Cut expenses. Once you know where the money is going, identify things you can eliminate. Do you need that gym membership? Those extra cable channels? Could you make coffee at home instead of buying it every day? These small changes can add up significantly over time.

      • Step 4: Build an emergency fund. Your emergency fund is your safety net for unexpected expenses. Aim to save at least three months’ worth of expenses, if not more. A tool like Acorns can help you put aside extra money each month for your emergency fund.

      • Step 5: Consider side hustles or freelance work. Drumming up extra income can help you reach your financial independence goal faster. Can you freelance your skills or take on odd jobs? Maybe you can start an online business. Consider ways you can increase your income and capitalize on the skills and knowledge you have.

      • Step 6: Invest in retirement funds. Start investing for retirement now, no matter how far away it seems. Contribute to a 401(k) or an individual retirement account. Automate your investments so you don’t forget or let them slide. A tool like Betterment makes it easy to automatically invest in retirement funds.

      • Step 7: Automate your savings. Set up automatic deposits at the beginning of every month so you don’t even have to think about it. You can also use apps like Digit to help you stay on top of your savings goals without having to think about it.

      • Step 8: Make debt repayment a priority. Pay off debt as quickly as you can. Prioritize accounts with the highest interest rates and pay as much as you can toward those. If you need help, a debt consolidation loan or a debt management plan may be a good option. A tool like The Real Cost can help you find the best way to pay off your debt.


      These 8 steps can help you become financially independent. It’s all about making small but consistent changes and tracking your progress. In time, you’ll be able to reach your financial independence goal.