You might be wondering, “Is it possible to be financially independent at an early age?” Yes, it is possible to become financially independent at an early age – as early as 21 years.

Keep reading to learn about financial independence and ways to achieve it.

Many people have many different understandings of financial independence. Some think of financial freedom as doing things on their own time and not worrying about money. For some, it might be saving before having a comfortable life after retirement. For others, it might be spending and not worrying about income.

All the above ideas are correct to some point. For those who do not have a clear idea about financial independence, let’s first understand it.

What is Financial Independence?

Financial independence or financial freedom is ultimately defined as having control over your finances and expenditure. It is a process that needs discipline and a good amount of planning.

Some people say that they practically cut off most expenses in their 20s and 30s to retire at an early age. To achieve financial independence, you do not need to sacrifice more. You can easily achieve it with some life changes.

Planning for financial independence is like a marathon. You need to have good strategy and consistency. It is always better to start early than late. Forbes in an article said about eight levels of financial freedom. They are listed as follows.

Not Living Paycheck to Paycheck
Enough Money to Quit your Job (for a bit)
Financially Happy and Still Save
Freedom of Time
Enough for a Basic Retirement
Enough to Retire Well
Enough for Dream Retirement
More Money Than You Could Ever Spend

From looking at these stages you can safely say that people of all age groups have their own financial independence goals.

Being a student who is still depending upon their parents for most of their financial needs it is a bit difficult to save money. Having a full-time job is not possible as you need to focus on your studies.

To be financially independent at age of 21, you need to start the process by 16 years or even before. You can become financially independent by following the below-given seven steps.


“The best time is to start a few years before. But the second-best time is now”.

When you are planning to save money, it might be late already. But it is said that there is no better time than now. You can always start now.

Do your research and make sure to have a good idea regarding financial independence. Plan your strategy. Set goals that you can fulfill. Do not set very high goals and stress yourself.

You are a student now and you need to focus on your studies first to have a better future. Make sure you are consistent till you attain the goal.


Now that you have done your part of the research you will have an idea about saving your money. The first step very important step is to open a savings account. Opening a savings account will help save money.

In India, a minor can open a savings account as early as 10 years and can operate it independently. Once they attain 18 years, they need to make sure to contact the bank regarding the changes. You can open a bank account as a minor and start saving money.


As you will be doing your studies you will not be able to take full-time jobs. But you can take part-time jobs during the evening time after school or college. Try to choose high-paying jobs.

You can go for online jobs as some jobs do not need any kind of qualification. Nowadays there are so many opportunities online for you to make money like freelancing, internships, social media influencer, and many more.

Many digital platforms provide great many job opportunities and you can even get a certificate of completion.


Student tags can buy you many discounts and offers. The student tag is not only used at entry gates in your schools and colleges, but they are also helpful in many places.

You can show your student ID at ticket counters, amusement parks, concerts, etc to get discounts on tickets.

You can use your student privilege to shop on top brands like HP, DELL, and many more. Find out more about student discounts in Top Student Discounts To Claim.

Apart from that, you can also get seasonal passes to travel by bus or train. Using the student’s privilege, you can get discounted seasonal passes.


“If you want to be financially free, you need to become a different person than you are today and let go of whatever has held you back in the past.”, said entrepreneur and author, Kim Kiyosaki

Set aside an amount you want to save first every month and then spend accordingly with what is left. You can spend the amount left without having to be conscious of spending.

As you are with your parents, you can ask them to take care of all your major expenses. Then you can credit the whole amount to your savings.

Note: A minor savings account cannot exceed a certain limit. The amount differs from bank to bank. For instance, in SBI bank, the minor savings account limit is ten lakh rupees only and not more than that.


If you are interested in investing in stock markets, you can make small steps and learn about it for future investments.

You do not need to actively invest. As you are a student, studies should be your main focus.

In our country, there is no particular law that restricts minors from investing in stock markets. If you are interested in the stock market then you need to ask your parent or legal guardian to open a trading account and a Demat account in your name as you cannot hold an account until you turn 18 years.

But before diving into the stock market, teach yourself basic knowledge on investing. Minor investments have many benefits.

You can get a clear idea about investments from Can minors to invest in stocks? Minimum age to invest in the stock market.


Take a notebook and note down all the expenses you make. This helps to keep track of your expenses.

Budgeting is the best way to measure your spending trend. You can make changes by reducing unwanted expenses or finding an alternative to reduce the expense.

This helps to save a lot of money and also helps you in your later life.

Note: You can use the financial freedom app to get knowledge on financial independence. It is available in many Indian languages.

The final point is you need to have good money management skills to achieve financial independence. Sometimes you might feel dejected. At those times, think about your financially independent future and stay motivated.

Write A Comment