How to achieve financial independence

How can you make big life choices — like moving or taking a new job — without money being the primary factor?

It takes work, but it’s possible, said Jill Schlesinger, CBS business analyst and host of “Jill on Money.” To start on the path to financial independence, Schlesinger said it’s important to know the specifics of your financial reality.

“People are able to make different kinds of choices in their lives once they have their arms around these numbers,” Schlesinger said, “and ones that are maybe much more, I would say, risky.”

Start by understanding your financial situation

“The most important thing that you can do to create financial independence is understand how much money do you spend today.”

Calculate how much you earn and have to save to afford your expenses

“For a lot of people, what they may find is running these numbers gives them different choices. They may say, ‘Hey, you know what? I've got to work longer if I'm going to spend this much money,' or 'I have to save more,' or 'Maybe I can do something completely different.’

“You have options, but only if you actually go through this process.”

Focus on saving instead of investing

“I can't even tell you the amount of time and money that is spent on the investment side of your universe. Get rid of it. Think about getting into that habit of saving. Be consistent. Nothing flashy. You don't have to beat the market. It's very easy to stick to a game plan that is achievable.”

Ashley Locke produced and edited this interview for broadcast with Catherine Welch. Grace Griffin produced it for the web.