Achieving financial freedom is a common goal, but it may sometimes feel out of reach. It’s not just about earning a high income; it’s about taking control of your finances and creating sustainable habits to create a future where your money supports your short- and long-term goals. There are many ways to build financial freedom, allowing you to live a flexible lifestyle and enjoy everything that matters most to you. Whether you’re looking for stability or adventure, we’ll help you understand financial freedom and how to become financially independent.
What is financial freedom?
Financial freedom means something different to everyone, yet we can all agree that making intentional financial choices can better support your short- and long-term goals. For some, it means not worrying about paying your next bill. For others, it could mean ensuring your loved ones have the financial means to carry on after you’re gone. At the end of the day, financial freedom isn’t an exact dollar amount, but rather the comfort and reassurance that it can provide. Take the necessary time to understand what financial freedom means to you while we go through steps you can take when you’re ready.
How to become financially independent
As we discussed above, becoming financially independent means something unique to everyone. The steps to financial freedom, however, can be universally the same. The first steps include identifying what financial freedom means to you and determining your current financial situation while working with a dedicated planner. Next, you’ll want to find ways to increase your income and manage your spending habits while investing your savings in the right types of investment vehicles. Thereafter, it can be beneficial for you and your loved ones to set up proper estate planning documents to best protect your assets now and in the future. Finally, you’ll want to protect your plan from unexpected situations by making sure you have a life insurance policy with the necessary endorsements added on to provide you with peace of mind if something were to happen to you. Taking these steps now can provide you with financial independence for years to come.
1. Define and Prepare for Financial Freedom
It is important to take the time to sit down and determine what it means to you to be financially independent. Create a list of your future goals and a timeline for which you would like to accomplish them. Some people prefer to create a vision board to help organize their thoughts and aspirations. Once you clarify your goals, you can prepare for next steps you need to take to get there. Although this is step one, you will still want to revisit this step quite frequently because some of your goals could change over time. You will want to check in to make sure you remain on a continuous path toward your goals.
2. Meet with a Financial Advisor
To feel financially free, you must understand where your money is currently going and how it’s working for you.
At Cary Street Partners, our financial advisors can work with you to determine if your funds are currently being maximized and invested properly, given your future goals. During this time, we may ask you some general questions to better assess your financial structure and behavior, including:
- How are you currently investing your money?
- Are your assets spread across multiple accounts or grouped into one?
- Do you have the proper retirement account set up for your long-term plans?
- What is your risk tolerance, and are you allocated correctly to reach your goals?
- Why are your financial goals important to you?
- What are your biggest concerns about your financial plan?
We would be happy to work through these talking points with you while setting up or analyzing your current financial plan. Once we have your assets working for you in a way that meets your needs and aspirations, you will likely feel more in control of your future.
To feel free with your money is to feel prepared for the unexpected. We can help set up your accounts so they are working to provide you with present and future support. One way to do so is by maintaining an emergency fund for any setbacks that may present themselves. Considering any needs or risks based on your age, career, or other personal factors, this separate account will help you feel at ease about future financial decisions.
3. Actively Increase Your Savings
Growing your savings requires a proactive approach to managing your finances. You can allocate a portion of any bonus or unexpected income directly into your 401(k) or other investment accounts, allowing your money to compound over time. Increasing your income, whether through a raise, promotion, or taking on additional responsibilities, can also provide additional funds to boost your savings. Consistently increasing your contributions, even in small increments, can significantly impact your long-term financial growth. By prioritizing regular contributions and taking advantage of compounding growth, you can steadily build financial security and reach your savings goals more efficiently.
4. Understanding Your Spending
If you are building financial freedom, then decreasing how much you spend is just as important as increasing what you’re able to bring in. It’s smart to go through all your current bills and expenses to see where you may be able to save. Many people are overspending without even realizing it, while others make unnecessary purchases for instant gratification or to keep up within a social circle. By acknowledging your circumstances, you’d be surprised at what you can cut out now and save for the future.
5. Solidify Your Estate Planning
According to Caring.com’s 2025 Wills and Estate Planning Study, only 24% of Americans currently have a will. There are many reasons estate planning is critical to achieving financial freedom. Estate planning ensures that your assets are distributed according to your wishes, protects your financial interests if you become incapacitated, and helps maintain privacy, minimize taxes, and avoid probate. Depending on the type of estate planning you set up, you would be protecting your current assets and building them for future generations.
In addition to a will, a durable power of attorney, and a healthcare proxy, another tailored estate planning document you can create is a trust. With a specific type of trust, you can protect your money from lawsuits, judgments, and creditors by removing your name from being directly tied to your assets. If or when you wish to transfer anything from your estate to other individuals or companies, there are ways in which you can minimize the taxes that would normally be due at the time of the transfer. There may be estate taxes, gift taxes, or transfer taxes that would be owed should you not have an estate plan in place.
Ensuring you have an estate plan in place will provide you with the confidence you need to feel optimistic about your financial goals. At Cary Street Partners, we can personalize your plan in a way that distributes your capital however and whenever you wish. Whether you have children, requirements you want fulfilled upon your passing, or unique situations that need further explanation, we work to ensure you and your loved ones are supported and prepared for the future.
6. Protect your Plan
Even the best financial plan can get derailed by the unexpected if not properly protected. An unexpected death, disability, or long-term care situation can greatly impact the financial condition of a great financial plan. This is why it is extremely important that you work with a financial planner who can help you protect your plan against these often-sudden events.
There are numerous ways in which purchasing insurance can help build financial freedom for you and your loved ones. By having a life insurance policy in effect when you pass away, your beneficiaries will have money to manage any day-to-day or long-term expenses that arise without having your usual income to rely on. Depending on how your beneficiaries wish to receive the money (in a lump sum or through installments), there are ways to avoid that money being taxed for IRS purposes. You can rest easily knowing that your loved ones will be financially cared for if something happens to you.
When you purchase an insurance policy, you can add separate endorsements, or riders, to maximize your coverage. Some endorsements will allow you to retrieve your payout amount before your death if you have a terminal illness and need assistance paying for hospital expenses or extra care. On the other hand, there are riders meant to protect your financial freedom, should you require long-term care that typical health insurance doesn’t cover. All these unique situations can be financially challenging for you and your loved ones if you don’t have the proper insurance plan.
At Cary Street Partners, we can help you determine what type of insurance policies you should consider and how much your policy should be worth based on your current expenses and future goals, as well as what endorsements, if any, you might consider adding for full coverage.
Experience financial independence with Cary Street Partners
The advisors at CSP are here to assist you along the way, no matter what step you’re working through. Our advisors can provide financial freedom tips to get you started or keep you moving toward your pursuit. Taking the time to work with a financial planner who can assess your situation and build strategies to protect your financial freedom can provide you with the comfort of knowing that, regardless of what may happen, you and your family will remain financially secure. Working with a financial advisor is an ongoing process to help manage, monitor, and adjust your plan as life changes. With our help, you can focus on what’s most important, spending time doing what you love.
Contact us now so we can help you understand how to achieve financial freedom for your future.
Paige W. Garrigan
Chief Marketing & Transitions Officer, Managing Director
The Wealth Wisdom Series is curated by Paige W. Garrigan, drawing from the experience and input from Cary Street Partners’ Financial Advisors. Collaborating internally with the team she gathers pertinent and timely topics for readers. With over 30 years of experience in the financial services industry, she has acquired a wealth of knowledge across various facets of the industry ensuring comprehensive insights for readers.
Cary Street Partners is the trade name used by Cary Street Partners LLC, Member FINRA/SIPC; Cary Street Partners Investment Advisory LLC and Cary Street Partners Asset Management LLC, registered investment advisers. Registration does not imply a certain level of skill or training.
Any opinions expressed here are those of the authors, and such statements or opinions do not necessarily represent the opinions of Cary Street Partners. These are statements of judgment as of a certain date and are subject to future change without notice. Future predictions are subject to certain risks and uncertainties, which could cause actual results to differ from those currently anticipated or projected.
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Cary Street Partners and its affiliates are broker-dealers and registered investment advisers and do not provide tax or legal advice; no one should act upon any tax or legal information contained herein without consulting a tax professional or an attorney.
We undertake no duty or obligation to publicly update or revise the information contained in these materials. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of securities, or information about the market, as indicative of future results.
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