Financial freedom: This is how you can become more independent step by step
20. October 2026
Financial freedom. At first it sounds like a life with a dream apartment, a trip around the world, passive income and an account balance that doesn't make you hold your breath when you open the banking app.
But what does financial freedom really mean?
Do you have to be rich for that? Have millions in your account? Quit your job at 30 and sit somewhere in Bali?
No.
For many people, financial freedom starts much smaller.
Maybe you just don't want to have to think about whether you can afford something every month. Maybe you finally want to have a financial buffer. Maybe you want to build up additional income in addition to your salary or be able to decide for yourself how you spend your time in the long term.
And that's exactly where the topic begins.
Because financial freedom is mostly not a big jump, but a series of small decisions.
Would you like to delve even deeper into the topic of financial freedom? “Financial Freedom” by Bodo Schäfer deals with the topic in more detail and can give you additional food for thought for your own path.
*This post contains affiliate links. If you purchase through such a link, I may receive a small commission. This does not incur any additional costs for you.
What does financial freedom actually mean?
When you hear “financial freedom,” you might immediately think of someone sitting on the beach with a laptop and earning $10,000 a month.
The internet loves stories like this.
But let's be honest: For most of us, everyday life looks more like this:
Salary comes.
Bills go off.
Food is bought.
Here's another order.
There's another subscription.
And suddenly the month is almost over again.
Oh my God – where did the money actually go?
Financial freedom doesn't necessarily mean that you never have to work again.
Rather, it's about building your financial situation so that you… more security, more opportunities and, in the long term, more self-determination have.
This can mean:
build reserves
reduce debt
handle money more consciously
to increase your income
create multiple sources of income
build wealth in the long term
to be less dependent on a single income
And the beauty of it?
You don't have to do everything at the same time.
Why many people feel financially unfree despite their income
Maybe you know this feeling:
You work every month.
You get your salary.
Actually everything should be okay.
And yet you always have this little feeling in the back of your mind:
“I actually need to take more care of my finances.”
Maybe you want to save, but there isn't much left over at the end of the month.
Maybe you want to invest but have no idea how to get started.
Maybe you want to make extra money online, but with all the possibilities, you don't know where to start.
ETF?
Shares?
Part-time job?
Affiliate marketing?
Digital product?
Freelancing?
Passive income?
And suddenly you have 25 tabs open and are just as smart as before.
Lol.
The problem is often not a lack of motivation.
The problem is a lack of orientation.
You get individual tips everywhere, but hardly anyone explains to you how to turn it into a meaningful personal path.
Financial freedom doesn't start with 10,000 euros
One of the biggest pitfalls when it comes to financial freedom is the thought:
“I can’t start until I have more money.”
Of course, a higher income makes many things easier.
But you can start improving your financial situation beforehand.
For example, by first finding out:
How much money comes in each month?
What expenses do I have?
Where am I spending more than I actually want?
How much can I regularly cover?
Do I have a financial buffer?
What options do I have to increase my income?
That doesn't sound particularly spectacular.
But it's exactly these kinds of basics that can make a big difference later.
Because before you can increase your money, you should first know what actually happens to your money.
Step 1: Figure out where you are right now
Before you plan your financial future, you need a starting point.
Take some time and take an honest look at your finances.
No panic.
You don't have to be a financial professional to do this.
Just write down:
Your monthly income
plus
your fixed expenses
plus
your approximate variable expenses
plus
your existing reserves or debts
This will give you a clear picture for the first time.
And you might notice:
“Okay, it’s not that bad.”
Or:
"Oh. I actually have to change something."
Both are completely okay.
Because clarity is the first step.
Step 2: Take a closer look at your expenses
Now things get interesting.
Because sometimes we don't necessarily earn too little.
We simply spend more than we realize.
And no, you don't have to start demonizing every coffee.
If you enjoy your coffee in the morning, drink it.
It's not about canceling your entire life.
It's about finding out:
Which expenses are really important to me – and which ones just happen on the side?
For example, look for:
unused subscription
regular online purchases
delivery services
spontaneous purchases
unnecessary fees
Things that you don't actually use anymore
Even small changes can make a difference in the long term.
Step 3: Build a financial buffer
A broken washing machine.
An unexpected bill.
A repair.
A sudden problem with the car.
Unfortunately, life doesn't ask beforehand:
“Does this fit into your budget right now?”
That's why a financial buffer can be extremely reassuring.
You don't have to have several months' salary in the account straight away.
Start smaller.
Maybe initially they are:
50 euros.
Then:
100 euros.
Then:
500 euros.
The specific amount obviously depends on your personal situation.
The important point is:
You develop a habit.
You become someone who regularly saves money for your own future.
And it is precisely this feeling that can be incredibly motivating.
Step 4: Don't just think about saving
Many people make a crucial mistake here.
They are just trying to reduce their expenses.
Of course, saving can make sense.
But at some point there is a limit.
You can't spend infinitely less.
Increasing your income, on the other hand, offers another option.
That's why it's worth looking at both sides:
💸 Keep more of your money
For example by:
more conscious spending
better planning
reduce unnecessary costs
Savings goals
💻 Earn more money
For example by:
a part-time job
Freelancing
Services
digital products
Affiliate marketing
your own online business
other additional sources of income
Which of these makes sense for you depends, of course, on your skills, your time and your personal situation.
You don't have to try everything.
On the contrary.
Choosing one option and actually getting started is usually more sensible than starting ten options at the same time.
Step 5: Stop comparing yourself to others
This is probably one of the most difficult points.
You open Instagram or Pinterest and see:
“Financially free at 25.”
“This is how I earn 20,000 euros a month.”
“My passive income is 8,000 euros.”
And as you look at your account you think:
“What am I actually doing wrong?”
Maybe nothing.
You don’t know the complete financial situation of these people.
You don't know:
what reserves they had
how long they have been working on it
what costs they have
whether revenue fluctuates
whether there is a company behind the story
whether this is even a realistic example for your situation
For this reason:
Don't compare your beginning to someone else's Chapter 20.
Your goal shouldn't be to look like someone else as quickly as possible.
Your goal should be to improve your own financial situation step by step.
Step 6: Set a specific goal
“I want to become financially free.”
Sounds good.
But it's not yet a real goal.
Because what does that mean to you?
Maybe it means:
“I would like to build up 1,000 euros in reserves.”
Or:
“I want to save 200 euros every month.”
Or:
“I want to create an additional source of income within a year.”
Or:
“I want to finally understand my finances.”
The more specific your goal is, the easier it is for you to check whether you are making progress.
And please don't make your first goal unnecessarily gigantic.
You don't have to be a millionaire tomorrow.
A goal that you can actually achieve is much more valuable than a huge number that will frustrate you after three weeks.
Step 7: Turn your wish into a plan
Now comes the most important part.
Because knowledge alone doesn’t change your finances.
Act already.
For example, you could do the following today:
Today
☐ View account balance ☐ Record income ☐ Write down fixed costs
Morning
☐ View recent account expenses ☐ Identify three unnecessary expenses
This week
☐ set a savings amount ☐ define a concrete financial goal ☐ Research an opportunity for additional income
That sounds almost too simple.
But that's exactly the point.
You don't need a complicated financial master plan that you abandon after three days.
You need a plan that you can really implement.
And what about investing?
Of course, building long-term wealth is also part of the topic of financial freedom for many people.
This can include, for example, various forms of investing.
But before you blindly buy any investment, you should first do your research and consider your personal financial situation.
Because:
Investing is not a competition.
You don’t have to find the “perfect ETF” today.
You don't have to constantly jump on financial trends either.
First understand.
Then decide.
And if you are unsure, professional financial advice can be useful.
The most important thought: You don't have to do everything at once
Maybe you read this article and are now thinking:
“Okay, actually I would have to change quite a lot.”
Stop.
This is exactly where many people make the next mistake.
You are motivated and suddenly want:
Create a budget
Save 500 euros
invest
Start a part-time job
Build an online business
Reduce debt
Read ten books about finance
…all at the same time.
And two weeks later?
No more motivation.
Therefore rather:
One step.
Then the next one.
Then the next one.
Financial freedom is not a sprint.
It's a long-term process.
💭 What if your goal wasn’t “rich” at all?
Maybe your actual goal is something completely different.
Maybe you want to wake up in the morning and not immediately think about it:
“Can I afford this?”
Maybe you want to be able to go on a spontaneous vacation.
Maybe at some point you'll want to work less.
Maybe you want to start your own business.
Maybe you want to plan for your future.
Maybe you just want to have this feeling:
“I have my finances under control.”
And that's exactly why financial freedom is different for every person.
For some it means millions.
For others it means:
Security.
For someone else:
Time.
And for someone else:
Self-determination.
You can decide for yourself what financial freedom means to you.
🚀 Your first step starts today
You don't need a huge income for this.
You don’t need a perfect financial plan either.
And you don't have to know everything already.
What you need is a start.
Take 15 minutes today and answer these three questions:
1. How much money do I receive each month?
2. Where is my money currently going?
3. What do I want to achieve next financially?
You don't have to do anything else today.
Because maybe that's exactly the difference between:
If you not only read about it, but really start step by step If you want, a simple timetable can help you.
Instead of spending hours collecting information, you can look at your financial situation, find initial adjustments and derive concrete next steps from this.
Because financial freedom doesn't start at some point in the future.
