[2] Rather, financial independence gives the freedom to make choices at will, enabling individuals to achieve what matters the most while not having to worry about earning money.
[2] Researchers posit that childhood experiences with money play a pivotal role in shaping values, attitudes, and financial behavior.
[1][4] Some people practice frugal living, save and invest a large percentage of income to achieve financial independence early in their career, as evidenced by people following the "financial independence retire early (FIRE)" movement,[2] while others are in pursuit of traditional retirement.
Researchers have developed several theories to explain how financial behavior is influenced by values, attitudes, and biases.
[8] In case of young adults, attaining college education, having an income, owning assets, having basic money management and problem solving skills improved their ability to achieve financial independence.
The resultant imbalance in the system, where three people each have different opinions, can further lead to unresolved issues and derail the retirement plan of the child.
The family projection process explains how children can end up with emotional issues by being witness to their parents' toxic relationship.
[11] The Behavior Portfolio Theory governs that investors are "normal"[12] and cannot always make rational decisions due to their cognitive and emotional biases.
[13] A couple may benefit from working with a financial therapist to resolve deeply rooted issues and feelings about money.
[16] Increasing savings, reducing expenses, consistently investing with a long-term horizon, and having a well-diversified portfolio can help achieve financial independence.