Financial freedom is a goal most people dream of, but few truly achieve.

Why?

It’s more than just having money in the bank — it’s about having control over your life, your time, and your choices.

So, how do you know if you’re on the right path?

If you’ve been working hard but wondering whether you’re really moving toward financial independence, there are certain signs that can tell you exactly where you stand.

In this article, we’ll explore seven key indicators that show you’re well on your way to achieving financial freedom. 

1) You’re living within your means

Financial freedom isn’t about the size of your bank account, it’s about how you manage the resources you have.

One of the earliest and most telling signs that you are on the path to financial freedom is that you are living within your means.

This doesn’t mean you’re scrimping and saving every penny.

Rather, it means having a comprehensive understanding of your income and expenses, and aligning your spending with your values.

It’s about making conscious choices with your money, not letting your money make choices for you.

Living within your means isn’t just about avoiding debt or building savings – although those are important steps.

It involves creating a sustainable lifestyle that supports your long-term financial goals.

When you do this, you’re not chasing after the latest gadget or trend, but investing in things that bring value to your life.

You’re not spending money to impress others, but using it as a tool to build a life aligned with your deepest values.

2) You’re not controlled by your money

Another sign that you are on the path to financial freedom is when you stop letting money control you and start controlling it.

This means that you are not constantly:

• Worrying about bills
• Living paycheck to paycheck
• Making decisions based on fear of financial scarcity

Instead, you’re making informed decisions about your money, based on your values and long-term goals.

You’re taking proactive steps to manage your finances and are not just reacting to financial situations as they arise.

In my own journey towards financial freedom, I’ve found that the shift from being controlled by money to controlling it is a game changer.

It puts you in the driver’s seat of your life.

As the renowned investor Warren Buffett once said, “Do not save what is left after spending; instead spend what is left after saving.”

When you save first and spend later, you’re making a conscious decision to prioritize your future financial freedom over immediate gratification.

3) You’re investing in your personal growth

One of the most profound signs that you’re on the path to financial freedom is when you start investing in your personal growth.

This doesn’t just mean financially, but also investing time and energy into developing yourself.

It’s about recognizing that your greatest asset is not your bank account, but you – your skills, knowledge, creativity, and resilience.

This might mean:

• Reading books that expand your perspective
• Attending workshops or courses that enhance your skills
• Seeking coaching or therapy to overcome personal obstacles

It’s about moving beyond quick fixes and instant gratifications to make choices that nourish and grow you in the long run.

In this context, I’d like to share one of my videos which explores the complex decision of whether to have a family as a single individual.

In it, I discuss societal expectations and how they often pressure us into believing certain paths are the ‘right’ ones.

But by focusing on our inner development and making choices aligned with our deepest values, we can create fulfilling experiences regardless of societal norms.

Understanding this concept can significantly help on your journey towards financial freedom.

If you find this video helpful and want to join over 30,000 others exploring a life with more purpose and freedom, feel free to subscribe to my YouTube channel.

Together, we can navigate this path towards authenticity and personal freedom.

4) You’re actively creating a life aligned with your values

Another revealing sign that you’re on the path to financial freedom is when you start actively creating a life aligned with your values.

This is about more than just paying lip service to your beliefs – it’s about making financial decisions that reflect them.

The truth is, our financial choices speak volumes about what we truly value:

• Do we invest in companies and initiatives that promote social good?
• Do we prioritize experiences over material possessions?
• Do we give generously to causes that matter to us?

It’s not always easy. The lure of convenience, the pressure of societal expectations, the fear of missing out – all these can steer us away from our values.

Yet, when we choose to stay true to them, despite the challenges, we’re not just building financial freedom.

We’re building a life of authenticity and meaning.

5) You view setbacks as opportunities for growth

In our journey to financial freedom, we will inevitably face setbacks.

Unexpected expenses, investment losses, financial mistakes – these are all part of the process.

But one of the most revealing signs that you’re on the path to financial freedom is how you handle these setbacks.

Do you see them as failures, as evidence that you’re not cut out for this? Or do you see them as opportunities for growth and learning?

The truth is that every setback contains within it the seeds of creative possibility.

Every mistake is a chance to learn something new, to adapt, and to grow.

When we choose to view our financial setbacks through this lens, we cultivate resilience and open ourselves up to innovative solutions.

This isn’t just about being optimistic.

It’s about being realistic and recognizing that growth often comes from discomfort and challenge.

It’s about choosing to focus on what we can control – our attitudes, actions, and responses.

In one of my videos, I explore this concept in depth.

I discuss how embracing feeling like an imposter can be a catalyst for authentic growth and empowerment.

This perspective encourages us to embrace our vulnerabilities and recognize our achievements without external validation, ultimately fostering more profound exploration of personal and professional capabilities.

This is a key aspect of the journey towards financial freedom – recognizing setbacks as opportunities for growth and learning.

This shift in perspective can transform our approach to finances, fostering a sense of empowerment rather than fear or insecurity.

6) You’re not in a hurry to reach financial freedom

This might sound odd, but hear me out.

One of the most unexpected signs that you’re on the path to financial freedom is when you stop being in a hurry to get there.

Why? Because the journey to financial freedom is just that – a journey.

It’s not a destination that we rush towards, but a path that we walk, step by step. It’s about the process, not just the end goal.

When we’re in a hurry to reach financial freedom, we can easily fall into the trap of making rash decisions or taking unnecessary risks.

We might overlook important details or neglect to do our due diligence.

We might even lose sight of why we wanted financial freedom in the first place.

But when we slow down and take our time, we make more informed decisions. We create more sustainable financial habits.

We stay true to our values and don’t compromise them for quick gains.

7) You’re building supportive communities

The journey to financial freedom is not a solitary one.

It’s a journey that we undertake as part of a community.

And one of the most significant signs that you’re on the path to financial freedom is when you start building and nurturing these supportive communities.

This might mean seeking out like-minded individuals who share your financial goals.

It could mean joining or creating financial literacy groups, investment clubs, or entrepreneurship networks.

Building supportive communities is not just about financial gain.

It’s about:

• Fostering connections
• Cultivating empathy
• Contributing to the growth and success of others

It’s about recognizing that we are all interconnected and that our financial decisions impact not just ourselves, but our communities and the world at large.

Embracing the journey to financial freedom