Money matters: What financial freedom means to India’s youth today

The terms lsquoindependencersquo and lsquofreedomrsquo 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 youthFor 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 processesAhead of Independence Day 2025 middaycom 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 goalsItrsquos all about choicesFor Delhibased software engineer Harshit Agarwal financial freedom means having enough resources to support his lifestyle and handle emergencies without relying on anyone else ldquoIrsquod 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 constraintsrdquo the 23yearold sharesMany 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 moneyldquoFinancial freedom for me is the ability to say no ndash whether its to family a toxic job or any other situation where money is being used to control you and still knowing that youll be okayrdquo states Neerja Kambil a Mumbaibased public relations professionalldquoI 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 anyonerdquo the 23yearold addsL Vaishnavi Trivedi R Neerja KambilFor Mumbaibased events executive Vaishnavi Trivedi too financial freedom is about having the power to make choices ldquoFor me financial freedom means making choices without worrying about how much a thing costs It is about being selfsufficient and managing my finances while maintaining some lifestyle choicesrdquo the 22yearold statesNagpurbased 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 ldquoIt means reaching a stage where Irsquove earned enough to run a family responsibly and manage all the expenses in addition to having funds for emergency situations and future savingsrdquo the 22yearold further sharesFinancial independence vs freedomWhile used interchangeably Raina De founder of marketing agency Marque amp Brew highlights that for her financial independence and freedom are different conceptsldquoFinancial 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 moneyrdquo the 30yearold explainsldquoFinancial 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 elserdquo the Kolkatabased entrepreneur who is currently pursuing her Masterrsquos degree in London addsHow much money is enough moneyWith the need for financial freedom and independence comes the most important question ndash how much money is neededldquoIn 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 croresrdquo says De adding ldquoI 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 Ill know I can retirerdquoL Harshit Agarwal R Raina DeWhile others havenrsquot worked out a fixed amount that would make them feel financially free and independent their general financial goals are wellestablishedldquoI donrsquot 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 benchmarkrdquo Agarwal statesFIRE is a financial strategy focused on aggressively saving and investing during your working years in order to be able to retire earlyFor Kambil earning around Rs 36 LPA seems to be a good starting point towards achieving financial freedom ldquoIt would give me the stability to handle unexpected situations like losing a job or falling ill without immediate financial stressrdquo she elaboratesLessons in financeWith 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 journeyldquoI think the most important thing is consistency whether itrsquos saving investing or upskilling Having multiple income streams helps but disciplined spending and longterm investing habits make the biggest difference in the long runrdquo Agarwal sharesMayank agrees saying ldquoBeing consistent in whatever you do is the most important step to achieve success Money management saving and investing in mutual funds are other essentialsrdquoKambil believes that financial freedom is not achieved only by earning well but also knowing how to manage save and invest money properly ldquoSaving 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 timerdquo she saysFor Trivedi the financial aspects are closely related to selfawareness and growth ldquoI believe financial freedom comes with realising the worth of your work and constantly looking for growthrdquo she saysldquoWhile 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 ratiordquo she addsDe believes how one achieves financial freedom or independence depends on the career path one has chosenldquoAs 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 sectorsrdquo she saysldquoI 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 jobsrdquo she concludesHear from an expertTodayrsquos youth is not only more financially aware but also better equipped to achieve their financial goalsldquoThey 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 themrdquo says Kavitha Menon founder of Probitus Wealth and a SEBIregistered investment advisorKavitha MenonExplaining when one can consider themselves financially independent she says ldquoYou 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 thatrsquos easily answeredrdquoHowever one can take steps to build a better financial position Menon suggests the following1 Spend after you save and invest those savings carefully2 Buy medical insurance for self and dependents if any3 Have a strong emergency fund to meet lifes uncertainties All longterm savings should be done only after you build the emergency fund4 Invest in inflationhedged assets5 Dont 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