Do you even know what financial independence actually is? I certainly had no idea for the longest time. I just thought it was having enough money to live comfortably without having to worry.
As I researched it more, I found it was a little more detailed than that. To be financially independent, you need to have assets which generate income greater than your expenses. Assets can include investments, a passive business, or rental property. There are other things, but you shouldn’t have to actively work to earn this income.
Invest As Well As You Can
Investing can be as demanding or as hands off as you make it. The one thing you don’t want is having your savings depreciate on a 0% current account. At the very least, look for a high interest savings account to make sure your cash keeps up with inflation.
But to grow your nest egg to financial independence levels quickly, you will need to invest your money. Every investment carries a level of risk, but you can still get decent returns investing in low cost index funds through a robo-advisor without gambling your financial future. The key here is patience. You have decades until retirement, so try to invest monthly to dollar average your positions, and resist the urge to sell when the markets tank. You can become more conservative when you get closer to retirement.
Make sure you get your company match and max out your tax free investment accounts before anything else.
You don’t need lots of money to invest, contrary to popular belief, you can get started with less than $100.