What it Means

And How to Get There

What Does It Really Mean to Be Financially Independent?
At its core, financial independence means having the freedom to live life on your terms without financial worry. It’s not simply about retiring early or hitting a magic number in your bank account. It’s about creating a life where you can make choices based on what truly matters to you.

That freedom looks different for everyone. For one person, it’s the ability to step away from a 9-to-5 job. For another, it’s spending more time with family, supporting a cause, or traveling the world. Whatever your vision, the goal is the same: to build enough wealth and resilience to support a sustainable lifestyle without being dependent on employment or external financial help.

The Four Dimensions of Financial Independence

Achieving financial independence is more than a one-time milestone: it’s a multi-faceted journey that touches every part of your financial life. Here are four key ways to think about it:

1. As a Goal
   This starts with defining what independence looks like for you. Is it early retirement? More time with your kids? Philanthropic giving? Once your goals are clear, the next steps (budgeting, saving, and investing wisely) become actionable. Tools like retirement calculators and budgeting apps can help, but having a personalized financial plan makes all the difference.
2. As a Lifestyle
   Living below your means, avoiding unnecessary debt, prioritizing health, and spending intentionally are all part of a financially independent lifestyle. Cultivating daily habits like frugality and intentional spending helps preserve wealth and reduce stress, especially over the long term.
3. As a Process
   Financial independence unfolds in stages: from your earning and saving years to retirement and beyond. Early in your career, the focus may be on maximizing income and saving aggressively. Later, you’ll fine-tune investment strategies, manage healthcare costs, and think more about wealth distribution and legacy. At each stage, adaptability is key.
4. As a Mindset
   This is perhaps the most important piece. Financial independence requires a mindset of discipline, resilience, and long-term thinking. It means viewing challenges as temporary, practicing gratitude, and staying informed about your financial landscape. Even high earners can fall short of independence without the right habits and perspective.

Common Misconceptions

One of the biggest myths is that a high income automatically leads to financial independence. In reality, people at all income levels struggle to save or invest because of poor spending habits or inflated lifestyles. According to a 2024 Bank of America study[i], nearly 50% of Americans live paycheck to paycheck, even among six-figure earners. Financial independence isn’t about how much you make; it’s about how much you keep.

How Larson Advisors Help You Get There

Achieving financial independence is complex, but you don’t have to do it alone. At Larson, our advisors are fiduciaries, which means we’re legally and ethically required to act in your best interest.

Here’s how we help guide your path:

• Clarity Through Planning: We help define what financial independence means to you and translate that into measurable goals.
• Tailored Strategies: Your advisor builds a personalized financial plan that includes cash flow, investment, tax, insurance, and estate strategies.
• Smart Investing: We construct diversified portfolios tailored to your risk tolerance and long-term objectives.
• Tax Efficiency: From charitable giving to capital gains strategies, we can help you keep more of what you earn.
• Risk Management: We can help you identify blind spots, whether in your insurance coverage or emergency fund, to protect your financial future.
• Accountability and Support: We don’t just build a plan and walk away. We monitor your progress, adjust when needed, and help you stay on course.
• Behavioral Coaching: One of our most overlooked but critical roles is guiding you through emotional financial decisions, so you avoid panic, impulsive spending, or misaligned choices.

The Bottom Line

Financial independence isn’t about a number: it’s about freedom, security, and peace of mind. Whether you’re just getting started or fine-tuning a plan that’s been years in the making, your Larson advisor is here to help you take the next right step. Because when your money is working for you, not the other way around, you have the ability to flourish, in every season of life.

[i] https://institute.bankofamerica.com/content/dam/economic-insights/paycheck-to-paycheck-lower-income-households.pdf