5 Ways to Achieve Financial Freedom

Accumulating more material things is not the ultimate goal for most Forbright Bank customers. In a recent customer survey, 90% of respondents said they believe true wealth is “being debt-free with enough assets to avoid financial stress,” and 68% said true wealth is “less time working and more time doing things I love.”

For example, Growth Savings customer Sonja E. says she’s saving for “early retirement so that my husband and I can spend time living a simple life, gardening, giving back to our community, learning new things, exploring the world, and spending time together in a low stress environment.”

For many of us, truly being wealthy isn’t about accumulating the largest bank balance or owning the most expensive homes. Financial freedom affords one autonomy, peace of mind, and life satisfaction rather than mere accumulation.

Achieving true wealth is a journey, and while it may look a little different for each person, that journey often includes five steps.

Debt can act as a financial anchor that limits your options and creates ongoing stress. Achieving true wealth begins with reducing debt.

Start by cataloging all your debts and attacking them systematically. Two of the most common approaches are the debt avalanche method (paying minimums on all debts while directing extra payments toward the highest-interest debt) and the debt snowball method (focusing on the smallest balances first). The avalanche method could save the most money mathematically, but the debt snowball method might provide psychological wins that can keep you motivated.

Consider prioritizing high-interest debt like credit cards, as these balances compound rapidly and create a cycle that’s difficult to break. Try consolidating multiple debts if you can secure a lower interest rate while avoiding new debt.

In addition to eliminating debt, it’s important to focus on building savings. By creating an emergency fund, you may be able to avoid taking on new debt in times of crisis. And by saving strategically for retirement, you can face the future with confidence.

Consider setting goals for all the expenses you plan to tackle, such as buying a home or car, paying for college education, and funding next year’s vacation. Then develop strategies to accomplish both long-term and short-term savings goals.

Growth Savings customer Daniela W. says she is saving “for both emergency expenses as well as the opportunity to take time off working (both short-term in the form of vacations and potentially long-term, on the order of months, without working). I’m also aggressively saving towards retirement.”

Financial freedom doesn’t require extreme frugality, but for many people, it is about optimizing your spending to align with your values. Distinguish between expenses that genuinely improve your life and those that provide temporary satisfaction. This might mean spending more on experiences that create lasting memories while cutting back on material possessions that quickly lose their appeal.

Automate your savings and investments so wealth building happens without constant decision-making. Set up automatic transfers to savings accounts, investment accounts, and retirement funds. This may lessen the temptation to spend money you’ve earmarked for your future freedom.

“I want to have savings set aside for things like bills and food ahead of time so they’re always paid for without having to worry about it,” says Growth Savings customer Nathan S.

True wealth is ultimately about designing a life that reflects your values and priorities. Doing this requires honest self-reflection about what activities and experiences genuinely matter to you. When you eliminate expenses driven by social pressure or unconscious habits, you may discover that your desired lifestyle costs less than you expected.

The amount of money you need to lead the life you want will vary based on your specific situation and personal preferences. When you have built up sufficient savings and developed habits of disciplined spending, you may find that you feel free to enjoy life more.

For many people, achieving true wealth means reaching a point where work plays less of a controlling role in their lives. When you have savings built up and don’t have debt demanding your ongoing attention, you may have more choice when it comes to work. For example, maybe you want to take a lower-paying job that you find more enjoyable, pursue your own business, or flex your work schedule without negative financial consequences.

Remember that this journey is highly personal. Your version of true wealth might look completely different from someone else’s. The goal is to create financial security and time freedom that allows you to live according to your own values and priorities.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.