Financial freedom: it’s a phrase that gets thrown around a lot—but what does it really mean, and is it actually achievable for the average Australian? The good news is yes. While it may seem like a distant dream, financial freedom is more within reach than many people think. With a clear plan, smart money habits, and a few strategic moves, you can fast-track your path to independence and start living life on your own terms.
In this blog, we’ll break down what financial freedom really means, the exact steps to get there, and how to make the journey faster—no matter your starting point.
What Is Financial Freedom, Really?
At its core, financial freedom means having enough income—whether from investments, savings, or passive income streams—to cover your living expenses without needing to actively work. It’s more than just about being rich. Financial freedom it’s about having choice and control over how you spend your time.
Whether your goal is to retire early, reduce your work hours, travel the world, or simply enjoy more peace of mind, achieving financial freedom can open the door to a life that aligns with your values.
How to Become Financially Independent: Start With a Vision
The first step toward financial freedom is clarity. What does freedom look like for you? Is it a specific income goal? A debt-free lifestyle? Owning your own home?
Once you’ve defined your version of freedom, you can reverse-engineer your path to get there.
Start by calculating your financial independence number—the amount of money or assets you need to cover your annual expenses without working. A common rule of thumb is to multiply your yearly expenses by 25 (based on the 4% withdrawal rule). For example, if you need $50,000 a year to live comfortably, your target is around $1.25 million in income-producing assets.
Steps to Financial Freedom: A Practical Roadmap
- Track Your Spending and Set a Budget
You can’t improve what you don’t measure. Use a budgeting tool or spreadsheet to track every dollar coming in and out. Then set a realistic budget that includes savings goals and investment contributions.
- Pay Off High-Interest Debt
Debt—especially credit card or personal loan debt—can be a major roadblock. Focus on paying it down aggressively using the snowball or avalanche method.
- Save Consistently
Aim to save at least 20% of your income if possible. Automate your savings to a separate account to avoid temptation.
- Invest Early and Often
Compound interest is your greatest ally. Even small investments, started early, can grow significantly over time. Consider a mix of shares, ETFs, managed funds, or property, depending on your risk tolerance.
- Build Multiple Income Streams
Financial freedom isn’t just about saving—it’s about earning smarter. Look for ways to create passive income through investments, side businesses, or property.
- Protect What You’re Building
Don’t overlook insurance and estate planning. Protecting your assets and having a plan for the unexpected is part of financial freedom too.
- Get Expert Advice
A personal financial advisor can help you fast-track your goals by creating a tailored plan and avoiding common mistakes.
Financial Freedom Myths (And What to Ignore)
Myth: You need to earn six figures – Not true. It’s more about how much you save and invest than how much you earn.
Myth: You need to be debt-free first – While paying down debt is important, you can still start investing and building wealth alongside it.
Myth: It’s too late to start – Whether you’re in your 20s or your 50s, there are always steps you can take to move toward independence.
Learn and Grow Along the Way
A big part of knowing how to become financially independent is education. The more you understand about money, the better decisions you’ll make. Listening to podcasts, reading finance blogs, and joining communities of like-minded people can keep you inspired and informed. Not sure where to start? Check out our blog on the Top Finance Podcasts in Australia for Smart Money Management—you might find your new daily listen.
Speed Up the Journey with Strategic Choices
Want to accelerate your path to financial independence? Here are a few extra tips:
- Live below your means – Lifestyle creep is real. The less you spend, the more you can save and invest.
- Upgrade your income – Whether it’s negotiating a raise or starting a side hustle, increasing your earning potential helps you reach freedom faster.
- Automate everything – From savings to investments, automation removes the need for discipline and keeps you consistent.
- Stay focused – Freedom takes time, but small, consistent steps compound. Stay focused on your “why.”
Ready to Build Your Financial Freedom Plan?
At Setch Group, we help Australians take control of their finances and plan for a life they truly want. Whether you’re just starting or already on the journey, our team of expert advisors can help you build a roadmap that reflects your lifestyle, goals, and timeline.
From investment planning to wealth creation and retirement strategy, we’re here to guide you—step by step.
Book your complimentary consultation today, and let’s create a future where you’re in control.