The financial freedom formula: 5 steps to wealth for America’s 250th anniversary

The financial freedom formula: 5 steps to wealth for America’s 250th anniversary

This summer, America celebrates 250 years since declaring its independence. From the start, financial freedom has always been an important part of the American story.

Financial freedom isn’t just about economics, but also about peace of mind. In fact, 82% of U.S. adults agreed that becoming debt-free is a well-being goal as well as a financial goal, in a May 2026 Forbright Bank survey of more than 1,800 respondents.

“Our surveys have shown that people really value the freedom that comes from saving money and building financial discipline,” says Lucia Franco, consumer insights leader at Forbright Bank. “We see in our research that customers who build financial plans and use tools like recurring deposits say that they feel less stressed and better equipped to achieve their goals.”

Achieving financial freedom is, for many Americans, a more important goal than accumulating more material things. In a 2025 customer survey, 90% of respondents said they believe true wealth is “being debt-free with enough assets to avoid financial stress,” and 68% said true wealth is “less time working and more time doing things I love.”

While financial freedom may look a little different for each person, Forbright Bank compiled a list of five steps Americans can take to gain financial independence.

1. Eliminate Debt

Debt can act as a financial anchor that limits your options and creates ongoing stress. Achieving true wealth begins with reducing debt. For example, 53% of U.S. adults say paying off debt has helped improve their financial wellness, according to Forbright Bank’s 2026 survey of more than 1,800 respondents.

Start by cataloging all your debts and attacking them systematically. Two of the most common approaches are the debt avalanche method (paying minimums on all debts while directing extra payments toward the highest-interest debt) and the debt snowball method (focusing on the smallest balances first). The avalanche method could save the most money mathematically, but the debt snowball method might provide psychological wins that can keep you motivated.

Consider prioritizing high-interest debt like credit cards, as these balances compound rapidly and create a cycle that’s difficult to break. Try consolidating multiple debts if you can secure a lower interest rate while avoiding new debt.

2. Build a Foundation of Savings

In addition to eliminating debt, it’s important to focus on building savings. By creating an emergency fund, consumers may be able to avoid taking on new debt in times of crisis. And by saving strategically for retirement, they can face the future with confidence.

Consider setting goals for all the expenses you plan to tackle, such as buying a home or car, paying for college education, and funding next year’s vacation. Then develop strategies to accomplish both long-term and short-term savings goals.

3. Harness the Power of Spending Optimization

For 57% of U.S. adults, budgeting has helped improve their financial wellness, according to Forbright Bank’s 2026 survey. Financial freedom doesn’t require extreme frugality, but for many people, it is about optimizing spending to align with their values. Distinguish between expenses that genuinely improve your life and those that provide temporary satisfaction. This might mean spending more on experiences that create lasting memories while cutting back on material possessions that quickly lose their appeal.

Automate your savings and investments so wealth building happens without constant decision-making. Set up automatic transfers to savings accounts, investment accounts, and retirement funds. This may lessen the temptation to spend money you’ve earmarked for your future freedom.

4. Design Your Ideal Lifestyle

True wealth is ultimately about designing a life that reflects your values and priorities. Doing this requires honest self-reflection about what activities and experiences genuinely matter to you. In fact, 48% of U.S. adults say having clear goals has helped improve their financial wellness, according to the Forbright Bank survey. When consumers eliminate expenses driven by social pressure or unconscious habits, they may discover that their desired lifestyle costs less than expected.

The amount of money you need to lead the life you want will vary based on your specific situation and personal preferences. When you have built up sufficient savings and developed habits of disciplined spending, you may find the freedom to enjoy life more.

5. Pursue Time Freedom

For many people, achieving true wealth means reaching a point where work plays less of a controlling role in their lives. When people have savings built up and don’t have debt demanding their ongoing attention, they may have more choice when it comes to work. For example, someone with significant savings may want to take a lower-paying job that they find more enjoyable, pursue their own business, or flex their work schedule without negative financial consequences.

Remember that this journey is highly personal. Your version of true wealth might look completely different from someone else’s. The goal is to create financial security and time freedom that allows you to live according to your own values and priorities.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

This story was produced by Forbright Bank and reviewed and distributed by Stacker.