Financial independence, be it from your family or from a typical nine-to-five position, has become an important goal for many people, and it’s not hard to see why. It comes with a lot of freedom, allowing people to create a work-life balance that’s best suited to their current lifestyle. But while passive income is one of the key ways of developing this independence, it’s not necessarily enough on its own. You’ll also have to change your approach to money, allowing you to be more aggressive with your saving and less likely to spend more than you should.

Determine your goals

Whether you’re just starting your career or are looking to make a career shift, it’s important to fully understand your goals and your motivations behind them. Are you working to move out on your own? Are you interested in developing enough passive income to cover your expenses? Are you hoping to retire young? It can be hard to cut your expenses and put as much of your savings away as possible, and having a finish line in mind can help give you the drive to make the necessary changes to meet or even exceed the goals you’ve set for yourself.

Understand all your expenses

Financial independence will be hard won if you aren’t aware how much you spend each month on the cost of living and any additional necessary expenses. In order to know how much you’ll need to make in a month to not only cover all your expenses but also save where possible, you have to understand how much you’re paying for student loans, credit card debt, mortgage or rent, groceries, fuel, dining out, and extra entertainment costs. Track all your expenses, have an earning number in mind, and budget each month so you can continue to work toward your financial freedom.

Save as much as you can

With a typically 50/30/20 budget, you’d dedicate 50 percent of your income to your needs (such as cost of living), 30 percent toward your additional wants (such as going to the movies), and put 20 percent directly into savings. However, you should always try to save more than that when possible. For instance, you could cut your expenses for your wants, adding an additional 10 percent to your savings, or work to decrease your cost of living by moving somewhere cheaper, paying off debts, or increasing your overall income through a passive income stream.

Start investing early

Conventional financial wisdom is that you be more aggressive with your investments earlier in your life as doing so will give you the best chance to grow your accounts. Investments can certainly help secure your financial future, but you want to be sure that you’re only investing in areas that you understand. Whether it’s stocks and bonds, crypto, real estate, or whatever else you may choose, be sure to do your homework and know what you’re getting yourself into before making any investments.

Work with a financial advisor

In the end, it’s always a good idea to work with a professional who can help you create a strategy for success. They can assess your current financial situation and plan a road map to help you achieve your goals. It may not be easy achieving your financial independence, but it’ll be worth it in the end.