Is it earning a certain amount of money? Is it leading a luxurious life? Is it being prepared for potential emergencies? Here are some ways India’s youth perceive financial freedom and independence
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The terms ‘independence’ and ‘freedom’ often take on different meanings for people. Among those, being financially free is one of the most aspired aspects of independence in modern India, especially for the youth.
For the young Indians, finance is not an afterthought; it is the factor driving majority of their professional and personal decisions. Not only are they actively charting out financial goals but also deriving ways to accomplish them, deviating from conventional mindsets and processes.
Ahead of Independence Day 2025, mid-day.com spoke to some young Indians who shared what being financially free and independent means to them, and what they believe are essential steps to accomplish their financial goals.
It’s all about choices
For Delhi-based software engineer Harshit Agarwal, financial freedom means having enough resources to support his lifestyle, and handle emergencies without relying on anyone else. “I’d consider myself financially free when I can make life or career choices like taking a break, switching fields, or funding personal goals, without being driven purely by financial constraints,” the 23-year-old shares.
Many people believe that financial freedom is about having the ability and means to make their own choices, without anyone directing them on how to spend their money.
“Financial freedom, for me, is the ability to say no – whether it's to family, a toxic job, or any other situation where money is being used to control you, and still knowing that you'll be okay,” states Neerja Kambil, a Mumbai-based public relations professional.
“I would consider myself financially free when I can afford to live on my own, support myself comfortably, pursue what I enjoy, and not stress about asking or being refused money. Even in a situation like falling sick or facing an emergency, I want to be able to manage without depending on anyone,” the 23-year-old adds.
(L) Vaishnavi Trivedi; (R) Neerja Kambil
For Mumbai-based events executive Vaishnavi Trivedi too, financial freedom is about having the power to make choices. “For me, financial freedom means making choices without worrying about how much a thing costs. It is about being self-sufficient, and managing my finances while maintaining some lifestyle choices,” the 22-year-old states.
Nagpur-based Mayank, who is currently studying architecture in Bhopal, echoes similar sentiments. He says that financial freedom is about earning enough so as not to bother too much if he ends up spending money on something expensive. “It means reaching a stage where I’ve earned enough to run a family responsibly and manage all the expenses, in addition to having funds for emergency situations and future savings,” the 22-year-old further shares.
Financial independence vs freedom
While used interchangeably, Raina De, founder of marketing agency Marque & Brew, highlights that for her, financial independence and freedom are different concepts.
“Financial independence has to do with not having to work for a substantial period of time or the rest of your life, and still have the means to sustain a certain lifestyle. Most people usually reach that stage by the age of 45 or 50. Some people never reach there if they are not thoughtful about saving and investing their money,” the 30-year-old explains.
“Financial freedom, on the other hand, is something I do have. I have the freedom to choose how to use my money. I have enough disposable income to buy those blueberries, take that international trip, or send money home. I can live the kind of life I want to live, in the way I want to live it, not according to my parents, partner or anyone else,” the Kolkata-based entrepreneur, who is currently pursuing her Master’s degree in London, adds.
How much money is enough money?
With the need for financial freedom and independence comes the most important question – how much money is needed?
“In India, if I had Rs 20 crores in fixed deposits, I would consider myself to be financially independent for the next 10 years. However, by the time I have that money, inflation would have turned that amount to around 32 crores,” says De, adding, “I am very happy with my life right now, but I am also ambitious. So, I will be happy if I had wealth worth Rs 80 crores, because I want to keep upgrading my lifestyle. That is when I'll know I can retire.”
(L) Harshit Agarwal; (R) Raina De
While others haven’t worked out a fixed amount that would make them feel financially free and independent, their general financial goals are well-established.
“I don’t have an exact number, but when it comes to financial independence, I do think in terms of having the resources to cover yearly expenses comfortably for at least 25 to 30 years, plus a buffer for healthcare and unplanned costs. Something aligned with the FIRE (Financial Independence, Retire Early) principle, roughly 25 times my annual expenses is what I keep in mind as a general benchmark,” Agarwal states.
FIRE is a financial strategy focused on aggressively saving and investing during your working years in order to be able to retire early.
For Kambil, earning around Rs 36 LPA seems to be a good starting point towards achieving financial freedom. “It would give me the stability to handle unexpected situations like losing a job or falling ill without immediate financial stress,” she elaborates.
Lessons in finance
With their financial goals in mind, these young Indians are adopting strategies to attain financial freedom and independence. What are the most essential steps in this journey?
“I think the most important thing is consistency, whether it’s saving, investing, or upskilling. Having multiple income streams helps, but disciplined spending and long-term investing habits make the biggest difference in the long run,” Agarwal shares.
Mayank agrees, saying, “Being consistent in whatever you do is the most important step to achieve success. Money management, saving and investing in mutual funds are other essentials.”
Kambil believes that financial freedom is not achieved only by earning well, but also knowing how to manage, save and invest money properly. “Saving regularly, having more than one source of income and investing in the right places can make a big difference. Also, being surrounded by people who are aligned with similar financial values helps in staying consistent and focused over time,” she says.
For Trivedi, the financial aspects are closely related to self-awareness and growth. “I believe financial freedom comes with realising the worth of your work and constantly looking for growth,” she says.
“While multiple sources of income could be beneficial, a smarter way of investment is more necessary. It is also important to differentiate between needs and wants, and work in accordance with an expense to savings ratio,” she adds.
De believes how one achieves financial freedom or independence depends on the career path one has chosen.
“As an entrepreneur, I would love to have three to four companies running parallelly that I start at different points of time. For example, currently, matcha is everywhere. But what if I only own a matcha bar, and then the tea goes extinct (which it might)? That would be problem. So, it is important to be in three to four different sectors,” she says.
“I did a modelling gig in London. I do paid collaborations as an influencer. I also do consulting work, and tell my team to do other things. One needs to be open to doing different things, and not be defined by their jobs,” she concludes.
Hear from an expert
Today’s youth is not only more financially aware but also better equipped to achieve their financial goals.
“They have much better access to investment products. They are willing to take risks and save diligently to meet their goals. Their aspirations are high and they save in order to fulfill them,” says Kavitha Menon, founder of Probitus Wealth and a SEBI-registered investment advisor.
Kavitha Menon
Explaining when one can consider themselves financially independent, she says, “You are financially independent when you have more money than you need over a life time. However, this is an oversimplified statement as how much you need over a lifetime is not a question that’s easily answered.”
However, one can take steps to build a better financial position, Menon suggests the following:
1. Spend after you save and invest those savings carefully.
2. Buy medical insurance for self and dependents, if any.
3. Have a strong emergency fund to meet life's uncertainties. All long-term savings should be done only after you build the emergency fund.
4. Invest in inflation-hedged assets.
5. Don't underestimate the power of compounding your own career. Invest in yourself by adding skills and go deep into expertise building. AI might take away the mundane and easy work. You can stay relevant only if you continuously evolve. Spend on skill upgrades in the early years of your career.
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