What Does Financial Independence Mean to You?

When we talk about financial independence, many people instinctively try to attach it to a number. In the U.S., recent polls link financial independence to an income far above their median salary. But here in Australia, research paints a very different—and far more meaningful—picture.

According to Insignia Financial’s Financial Freedom Report (23 May 2023), financial independence is now the number‑one aspiration for 55% of Australians. Rather than chasing a specific income, Australians increasingly define independence as having the financial security to live their dream lifestyle.

This shift reflects deeper changes: cost‑of‑living pressure, evolving priorities post‑COVID, and a mindset that values flexibility, lifestyle, and wellbeing over simple dollar targets. Many Australians are more focused on living life on their terms than hitting an arbitrary income figure—even though the national median personal income sits at $58,216 per year (Source: abs.gov.au).

Financial independence, then, isn’t about a magic salary. It’s about the confidence and capability to make decisions that genuinely improve your life.

Here are four key ways Australians experience financial independence.

1. Spend Without Worrying

Money may not buy happiness, but financial breathing room certainly reduces stress.

Financial independence often shows up in everyday moments—enjoying a night out, treating the family, or taking a holiday without fearing the credit card bill. Insignia’s research shows Australians highly value the ability to enjoy life, with regular holidays ranking as the second‑highest aspiration (50%).

A thoughtful spending plan or monthly budget helps ensure your essentials are covered, your long‑term goals are funded, and there’s still space for enjoyment. Planning ahead also means you can responsibly work toward bigger lifestyle upgrades, like a dream trip or home improvements, without sacrificing peace of mind.

2. Enrich Your Children

Raising children is rewarding—but rarely cheap.

Whether it’s sports, dance, tutoring, or music lessons, enrichment comes with a cost. And looking further ahead, young Australians entering adulthood face their own increasing financial pressures. While Australian university costs differ greatly from the U.S., parents here still list financial independence—and often, being able to support their children—as a major aspiration. Insignia’s survey found Australians place high value on both family and personal wellbeing, with 44% prioritising supportive relationships and strong family connections.

Including children’s activities and education goals in your financial plan helps soften the impact on your budget while giving your kids space to explore their strengths and passions.

3. Change Careers or Pursue Meaningful Work

One of the clearest signs of financial independence is having the flexibility to choose work for its purpose—not just its paycheque.

Insignia’s research highlights a shift in Australians’ priorities: many are now more driven to pursue their dream lifestyle (60%) than to own a dream home (40%). This includes career choices. When money isn’t the only factor, people feel empowered to follow work that aligns with their values, whether that means shifting industries, stepping into the not‑for‑profit space, or simply choosing an employer whose mission resonates.

If financial constraints weren’t holding you back, what work would you choose? Exploring that question is often a powerful indicator of how close you are to your own definition of independence.

4. Retire on Your Terms

Retirement is the milestone most people associate with financial freedom—and yet many delay it unnecessarily.

That’s often because they’re chasing a target number they think they should reach. But numbers alone don’t define retirement readiness. Australians increasingly prioritise lifestyle—time with family, travel, and wellbeing—over traditional markers like home ownership.

Using planning tools that focus on your ideal week in retirement, rather than a fixed dollar amount, often leads to greater clarity and confidence. By working backwards from lifestyle goals, we can design a Life‑Centred Financial Plan that supports both your desired day‑to‑day life and longer‑term dreams like relocating or extended travel.

Redefining Financial Independence

Financial independence isn’t a salary. It’s a feeling—a sense of security that allows you to live according to your values.

With Australians reporting increased cost‑of‑living pressures (62% have adjusted their household spending) and uncertainty about maintaining their current lifestyle (56% are not confident about the next two years), having a well‑structured financial plan has never been more important.

Your independence will look different from someone else’s. But the path is the same: clarity, planning, and support.

If you’re ready to explore your own financial independence—whether that means career freedom, more lifestyle flexibility, or a confident transition into retirement—let’s start planning together.

Source: Australians strive for financial independence – Insignia Financial