The idea of financial independence means different things to different people, depending on factors such as age, job status, income, family situation and life goals. But for most, it involves some combination of reducing debt, earning more money and building savings.
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High earners who are single or have no children might achieve financial independence in a couple of years if they make smart money moves. In contrast, someone who earns an average income and has a large family to support might take a decade or more to reach even the early stages of financial independence.
Financial services company Empower recently polled 2,000 U.S. adults to learn more about how Americans view financial independence. One discovery was that for most Americans, becoming financially independent means you’ve officially “made it.” About two-thirds of respondents put a high priority on making it, but nearly one-quarter don’t believe they are there yet.
According to the Empower survey, these are the top 10 signs you’ve “made it” by reaching financial independence:
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Not relying on anyone else for money (44% of respondents)
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Moving up in my career (39%)
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Having a job I love (37%)
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Earning a certain amount of money (25%)
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Not having to work at all (25%)
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Being able to spend money without worrying (22%)
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Being able to pay my bills on time (9%)
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Buying luxury items I want (7%)
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Being able to retire comfortably (7%)
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Buying a home (6%)
In terms of income, the average American believes financial independence means earning $94,000 a year or more — and 60% feel optimistic they can reach this milestone. But money represents only part of financial independence. More than one-third of Americans also put a high value on career growth (39% of respondents) and having a job they love (37%).
Despite general optimism over their ability to achieve financial independence, the Empower survey found that most Americans (72%) currently stress over their finances at least once a month, while 17% said they worry about money daily. More than half (57%) said they still rely on their family and friends for financial support
Of those who don’t feel financially independent, about three in 10 are optimistic they will be in the future, while 54% don’t think they’ll ever be able to pay their bills without help. The vast majority (92%) of financially independent Americans said they only started to feel that way once they reached the age of 36.
“No matter your age, financial independence starts with clarity,” Keith Jones, a senior financial professional with Empower, said in a Jan. 9 press release. “Ask yourself what you want and why you want it. Establishing clear financial goals provides both direction and purpose, motivating you to work towards a more secure and satisfying financial future.”
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This article originally appeared on GOBankingRates.com: 9 in 10 Americans Feel Financial Independence at This Age — 10 Signs You’ve Made It