Key insights:
- Financial freedom is the top financial goal for 68 percent of women and 66 percent of men in an RBC Wealth Management survey.
- Everyone’s definition of financial freedom is different, shaped by personal values, experiences and life circumstances.
- RBC research found baby boomers balance wanting to provide financial security for heirs (84 percent) with enjoying their wealth today (75 percent).
- For younger generations, an inheritance can be a stepping stone to financial freedom, with 90 percent of Gen X and millennials saying it would help them plan for their long-term goals.
- Financial advisors are a key resource to help you articulate your unique meaning of financial freedom and turn that vision into a plan.
Two hundred and fifty years ago, the idea of freedom was written into the founding of the United States—and for generations of Americans since, that aspiration has evolved and expanded. For many people today, the pursuit is financial—the desire to live, spend and save on their own terms. In fact, a recent RBC Wealth Management survey of high-net-worth Americans found financial freedom is the top financial goal for both women (68 percent) and men (66 percent).
“Our research has really shown that Americans value autonomy and control over their choices,” says Bobby Lovgren, head of Wealth Planning at RBC Wealth Management–U.S.
What is financial freedom?
Financial freedom means something different to everyone, shaped by your personal values, experiences and life circumstances. For some, it means retiring early to travel or explore a new hobby. For others, it’s being able to leverage credit strategically rather than out of necessity.
The RBC Wealth Management survey asked respondents to define financial freedom in their own words:
“Financial freedom means having enough stable income, savings and investments to cover my lifestyle and unexpected expenses without stress, debt pressure or dependence on a paycheck, while still having the freedom to choose how I spend my time.”
“True financial freedom is being able to enjoy the hobbies, luxuries and travel we love without having to stress about a bank balance or whether I’ll be employed next month.”
“Financial freedom is knowing that I do not need to work in order to live a comfortable lifestyle that includes traveling, providing for our children and having enough funds to live into our 90s.”
At its core, Lovgren says, financial freedom is about having choices.
“It’s that point where your life is no longer dictated by money,” he says. “You can live your best life and do the things you want, based on the wealth you’ve accumulated and the planning safeguards you’ve put in place.”
Define your path to financial freedom
To understand what financial freedom means to you, Lovgren recommends you start by identifying your core values, such as family, education or philanthropy.
“When we meet with clients, we talk about life first and money second,” Lovgren says. “Successful wealth planning is tailored to an individual’s or family’s life goals and values.”
For example, RBC Wealth Management’s research shows that most high-net-worth women (81 percent) and men (75 percent) prioritize values related to “body, spirit and soul,” indicating that, for them, true wealth begins internally with clarity, well-being and emotional alignment. It’s not just about generating wealth—it’s about connecting their money with purpose to create a future that’s both secure and fulfilling.
Your own definition of financial freedom may include the ability to:
- Live unconstrained by traditional work schedules or locations
- Pursue passions, hobbies and travel without financial stress
- Support family members across generations and witness the impact
- Give back to causes and communities that matter to you
- Take career risks or transitions without fear of negative financial impact
Your financial advisor is a key resource to help you articulate your specific vision, align your wealth with those goals and priorities, and translate them into an actionable plan.
When wealth becomes a legacy
For many Americans, financial freedom is as much about what you leave behind as it is what you build for yourself.
RBC Wealth Management’s latest wealth transfer survey found most baby boomers (84 percent) want to provide financial security for future generations, but 75 percent also want to enjoy their lives and wealth now—even if that means leaving less to their heirs in the future.
Lifetime gifting, or “giving while living,” is one way to balance both priorities, such as by paying for a multigenerational family vacation, helping with a child’s house down payment or college tuition, or setting up a donor-advised fund.
Those on the receiving end often see an inheritance as a building block for their own financial independence. A vast majority (90 percent) of Gen Xers and millennials say receiving an inheritance would help them plan for their long-term financial goals, as well as open doors to travel, spend time with family and support causes they care about. It often sparks an even longer view: 85 percent say that receiving an inheritance would allow them to start thinking about their own legacy.
“No matter where you are in your journey to financial freedom, having a clear plan makes all the difference,” Lovgren says.
As America celebrates its 250th anniversary, use this milestone as an opportunity to reflect on your personal vision of financial freedom and talk to your advisor about turning that vision into a plan.