Financial Freedom

Interactive Video

[Smiling man with his arms crossed in a barbershop wearing an apron, holding a pair of clippers.]

Narrator: Financial independence is really about having your financial ducks in a row.

[3 randomly placed animated ducks with dollar signs on their bodies. The ducks all move to the center of the screen in a straight line.]

It means you've got enough income or savings to cover your expenses without needing a hand from anyone else.

[A woman holding her hand out signaling “stop” with a thought bubble that says “I’ve got this covered.”]

According to the U.S. government, financial independence is when you make an annual income of at least 150% of the federal poverty level.

Let's put it in simpler terms. If the poverty level for a family of four is $30,000 in 2023, hitting financial independence means your household income is at least 150% of that, which is $45,000.

[A bar graph comparing the poverty level for a family of 4 at $30,000 to financial independence for the same family at $45,000.]

So, here's the million-dollar question: Are you financially independent? You can find out by comparing your financial situation to the national standards. Remember to multiply the poverty level by 1.5, or 150%, to determine financial independence.

[A young man sitting against a tree working on his computer. His bicycle is beside him leaning against the other side of the tree.]

But, is that really enough? After all, it’s just a statistic. We all know there are so many aspects to life that a mere number doesn’t reflect.

[A young man scratching his head thinking. Images appear in his thought bubble: numbers and math symbols, a car icon, a graduation cap icon, house keys, and a magnifying glass with the word job in the middle.]

Financial independence is the first step. To obtain financial freedom, you have to work at saving for the future and making your money work for you.

[An animation showing the path from financial independence to financial freedom with a piggy bank in the middle of the path.]

Financial freedom is earned—and not in the way paychecks are earned.

[Smiling man with his arms crossed in a barbershop wearing an apron, holding a pair of clippers.]

You see, financial freedom is like a reward you earn by being smart with your money and establishing good habits.

[A lightbulb with a dollar sign inside of it reads “being smart with money” next to three gears working together which reads “establishing good habits”.]

Think of every dollar you spend as saying goodbye; you won't get it back.

[A man holding a takeout coffee and three shopping bags. A woman waving goodbye with a speech bubble that says “Bye, Bye!”. ]

But every dollar you save becomes your helpful buddy, working quietly in the background until you come back to get it.

Consider some simple steps to help you get started on the path towards financial freedom.

[Flash Cards: Steps Toward Financial Freedom]

Card 1 

• What’s important?
• What do you want in life?
• Goals require money.

[A man sitting on his couch writing in a notebook.There are two electric guitars mounted on the wall behind him.]

Narrator: Reflect on what’s important to you and what you really want in life. A lot of goals require money. So, keep those ideas in mind to motivate you. If you spend money on unimportant things, that money won’t be available to contribute to your long-term dreams.

Card 2

• Spend less than you make.
• Make a plan.
• Prioritize needs.
• Pay Yourself First.

[Three jars of cash labeled "Needs", "Wants", and "Savings".]

Narrator: Spend less than you make. Make a plan for your money, prioritize your needs, and build savings with the Pay Yourself First method.

Card 3

• Set aside funds for unexpected situations.
• Be prepared without dipping into your 
• long-term savings.

[A man with his golden retriever at the vet who is smiling while holding the dog’s paw which is wrapped in a pink cast.

Narrator: Set aside funds for unexpected situations separate from savings. When life happens, and it always does, you want to be prepared without dipping into your long-term savings.

Card 4

• Control debt.
• Use credit cards sparingly.
• Build your credit score.
• Pay off what you owe every month.

[A couple working at the computer with notebooks, bills, and receipts.]

Narrator: Control debt—so it can’t control you. Use credit cards sparingly and for convenience to build your credit score. Try to pay off what you owe every month to avoid extra charges.  

Card 5

• Start planning for retirement today.
• It’s never too early to start saving.

[A woman working at her table with a notebook, papers, and a calculator. There is a cup of coffee next to her on the table.]

Narrator: Start planning for retirement today. No matter how far away it feels, it’s never too early to start saving.

Card 6

• Think about investing.
• Determine your financial goals.

[A young family meeting with a financial planner.]

Narrator:  Think about investing some money. Determine your financial goals, how long you can wait, and how much risk you can take.

Card 7

• Keep your spending choices similar even as you earn more money.
• Keep your lifestyle choices pretty much the same.

[Three young men making homemade pizzas together.]

Narrator: Keep your spending choices similar even as you earn more money over time. Don't rush to spend it all. Try to keep your lifestyle choices pretty much the same, even if your wallet gets heavier.

Card 8

• Start a plan with a timeline to take care of all your bills.
• Become financially independent.

[A young woman sitting at the kitchen table in front of a laptop with an older gentleman. There is a container of orange juice, a glass of water, and a glass of orange juice on the table.]

Narrator: If someone currently helps you with expenses, that’s okay for now. But it’s good to start a plan with a reasonable timeline to take care of all your bills and become financially independent.