Financial independence means much more than freedom from money woes. No matter what this two-word phrase means to you, it leads to personal satisfaction and incredible freedom from worry.

To some, the term “financial independence” evokes images of sleek, shiny sports cars, beautiful beachfront condominiums, and fascinating journeys to far-flung places. To others, the same phrase simply represents freedom from the need to rely on income from work. No matter what your vision of financial independence, it’s vital that you take some initial steps to get yourself firmly on the path toward freedom from monetary woes.

Create Your Vision

Before you can take steps to becoming financially independent, it is important that you create your own vision. What does financial independence mean to you? Is it simply having the ability to pay all your bills and live comfortably with the knowledge that your time is your own? Does it involve experiences you’ve always dreamed of sharing with family or friends? Spend some time creating a vision that satisfies you.

Create a Realistic Cost Analysis

Once you know what financial independence represents to you, it’s time to find out how much money you need to make that vision a reality. If private airplanes, yachts, and mansions are part of your dream, understand that you will need a high level of monetary wealth to get what you want. If you have a vision of thrifty living involving an acre in the country, an organic garden that supplies inexpensive food, and easy access to a public library filled with an unlimited supply of books to read, you’ll need less money to make your goal a reality. Whether your vision is wonderfully grandiose or sublimely simple, draw it up in black and white, taking inflation and the cost of maintenance into consideration.

Eliminate Debt and Unnecessary Expenses

No matter what your vision of financial freedom entails, the first step to reaching your goal is to eliminate debt. Here are some easy ways you can begin to make the changes that will lead you to freedom from the burdens that are preventing you from getting what you really want.

• Stop unnecessary spending. Begin by noticing where and how you spend your money. Simply record each purchase you make for about a month, not leaving anything out. Once you identify areas where money is being wasted, start eliminating those needless expenses. Keeping a spending journal lets you see just how much those little extras ultimately cost over time. Calculating the cost of unnecessary expenses can show you how much you could actually be using to eliminate debt; and how much you will eventually be saving.
• Take a hard look at your monthly bills. How much are you paying for electricity? Could you save money by turning off lights in empty rooms or turning down the air conditioning? What are you paying for cable or satellite TV? Does your family really need that level of service? What are you paying for cell phone service? Could one of the cheap cell phone plans meet your needs just as well?
• Pay down credit accounts, and finish paying for vehicles if you haven’t already. Do this aggressively. Start with the smallest debt, eliminating it and moving on to the next one. If you have department store credit cards or other accounts that charge you for inactivity, eliminate them once you’ve paid them off.
• Pay off student loans. If you weren't fortunate enough to have your education paid through scholarships or school grants, you may still have student loans to payoff. If you are having difficulty making the required payment, check to see if you qualify for hardship deferral or an income-based repayment plan.
• Understand that credit and debt are two different things. Using a credit card for some expenses and paying it off monthly before interest accrues helps to keep your credit score up. So does paying all your accounts on time. If you want to get rid of credit cards, eliminate the ones that have the lowest spending limits, and keep those with the highest spending limits. The more available credit you have, the better your credit score will be.
• Downsize. Decide what is necessary, and what’s not. If you are an empty nester, do you really need a 7 seater SUV and a 3500 square foot home? What about the latest smartphone or tablet? Consider Will Smith’s famous quote: “Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” Many of us are guilty of spending to impress. Downsizing allows you to spend less now, enabling you to put money to better use later.

Begin Saving and Investing

The key that unlocks the door to wealth and financial freedom is within easy reach. To gain wealth, you simply have to spend less money than you make. This does not necessarily mean you need to sign up for a stressful high-paying profession. In fact, the opposite is true. We’ve all heard stories about people with humble jobs who have retired as millionaires. We have also heard stories about lottery winners and professional athletes who have managed to allow unbelievable sums of money slip through their fingers. The difference between these stories is a basic one: People who save thrive. Those who fail to save their money end up falling into deep financial holes.

Get professional help with decisions involving saving and investing, and don’t be afraid to ask for a second opinion about how best to make your money grow. Learn which financial vehicles earn money fastest, and decide which risks you are or are not willing to take. Decide which costs to cut, and think about ways to increase income so you can save more rapidly. For example, consider methods for creating passive income, so more of your time will become your own more quickly.

As you develop responsible saving habits, keep your goals in mind. As your wealth grows, decide what kind of lifestyle will satisfy you most. Keep in mind that the more real estate, cars, pinnacle experiences, and possessions you need in order to feel satisfied, the more wealth you will need to amass before finally saying goodbye to the nine-to-five. If you take the important step of eliminating excess spending now, you might find you enjoy a simpler lifestyle. As you come to enjoy simpler living, those goals may change.

Control Your Time and Do What You Love

Get into the habit of controlling the way you spend your time. Start doing things that make you happy. If you don’t care much for the job or career you have, think about making a change. No matter what financial freedom looks like to you, true wealth lies in your ability to control your time, and to enjoy the way you spend every minute, hour, and day of your life. If you need more education, then consider the cost as an investment into the financial freedom you desire. If you feel passionately about the work you do, it will be a pleasure you can take great pride in.

At the same time, recognize that additional education may not be for you. Even though about 90% of the millionaires in America graduated with undergraduate degrees, many successful people have less education. Many wear jeans instead of business suits. Some have amassed great fortunes doing jobs highly degreed individuals might see as humiliating. There is nothing wrong with doing a basic job, so long as you’re simply being who you are. If you’re true to yourself, you will enjoy greater success than you will if you fabricate a life designed to bring approval from others. To be happy, you need to take your deepest needs into consideration.

No matter what you do, be careful not to allow your job to completely take over your life, as doing so can cause you to rapidly lose sight of your goals. Focus on becoming the kind of person you want to be and act the way you plan to act once you achieve your dream of financial independence. Doing this will help you to enjoy a strong sense of empowerment that will help propel you toward success.

Build a Robust Support System

Surround yourself with people who have the same type of goals you do. If you are married, you and your spouse will need to agree on a collective vision of financial independence. If your spouse is a spender and you are a saver, you will need to help him or her learn the value of saving. Without agreement, your mutual ability to reach your goals will be severely hampered. If unmarried, be selective in choosing a partner. Look for someone who shares a common vision and who finds saving money easy. Nurture friendships with people who have similar goals to your own, and find ways to enjoy free time without overspending.

Building a robust support system and nurturing solid relationships with like-minded people will help you to realize your goals. Painful as it may be at first, eliminating relationships that do nothing to help you achieve your goal of financial freedom will ultimately help to propel you forward.

The road to financial freedom is paved with choices. Every choice you make either moves you toward your goals or holds you back. Every unnecessary item you buy is a bump in the road; every good investment you make is like a little downhill stretch that makes traveling through life easier. Eliminating debt, saving money, spending your time wisely, and enjoying the company of people who complement you are steps that are just as easy to take as their opposites. These simple steps lead toward a life that is rich beyond compare – a life in which your vision of financial independence is a reality.