This is the Real "Secret" to Feeling Financially Free (and confident!)

Freedom isn’t about quitting work - it’s about choosing what you do and when.

Author

Michela Allocca
November 18, 2025

👉🏻 The TL;DR (5 minute read):

Financial independence isn’t about becoming a millionaire right away - it’s about gaining clarity around what is “enough” so you can take your power back when it comes to your financial and professional decision-making. This week I am sharing 3 of the biggest mindset shifts that happened after I calculate my financial independence numbers!

🚨 There are only 2 months left of 2025! Don’t let your goals get away from you! Check out the Personal Finance Dashboard or the Basic Budgeting Template! 

MONEY
Knowing My FI/RE Numbers Changed How I Work

At the start of this year, I crossed a pretty major net worth milestone and decided to calculate my financial independence numbers. For years, I had been ignoring the Financial Independence (FI) movement because not only did I think it was impossible for me to achieve, but I also thought it meant I’d need to live extremely frugally.

And I’m not exaggerating when I say that the single exercise of running my numbers through a forward-thinking lens completely changed how I think about my life, career, and goals.

I used to chase arbitrary milestones - hitting a certain net worth, maxing out my accounts, or just trying to “make more.” But when I crossed this financial milestone at the beginning of 2025, I realized I didn’t even know what I was working toward. I was chasing numbers without understanding what they meant.

So I ran the math. And it gave me something way more valuable than motivation - clarity.

1. Knowing my numbers gave me career freedom.

When I first heard about financial independence, I thought it was just for people trying to retire at 35 and live off rice and beans forever (which TBH doesn’t sound so bad to me lol). But what I have learned is that it’s not about early retirement. It’s about choice.

Once you know your numbers, you realize FI isn’t just about money - it’s about being able to decide how you spend your time.

There are a few versions of FI:

  • Traditional FI - retire in your 50s or 60s.

  • Coast FI - you’ve invested enough that your money will grow on its own until retirement.

  • Barista FI - you can scale back, work part-time, and let your investments cover the rest.

Coast FI is the one that changed everything for me. Once you hit it, you’ve already saved enough for your future - which means every decision you make next is about your present.

You can take a sabbatical. Switch careers. Start something new. You’re no longer working out of fear of falling behind - you’re working from a place of freedom.

2. Small savings shifts matter more than you think.

There’s a huge misconception that FI is only possible if you make a ton of money. It’s not entirely true.

The key isn’t necessarily how much you make - it’s how much you save consistently. Even a 1% increase in your savings rate can completely change your timeline to financial independence.

For example, if you make $70K and increase your savings rate from 9% to 10% - that’s about $60 more per month - you’d have over $100,000 more in retirement savings down the line.

One percent. That’s a dinner out. A couple Uber rides. A small, almost invisible shift that can buy back years of your life. And this is assuming that you only make this one tiny shift once.

It doesn’t need to be all or nothing. It just needs to be consistent. And the earlier you start, the easier it gets. Do not overlook or scoff at small wins!!

3. You can feel financially free long before you reach FI.

This might be the most surprising part: you don’t have to wait until you hit your “number” to feel free. Just knowing what your number is can change the way you approach your financial journey.

When you have a clear goal - one that’s based on your actual lifestyle, not some random benchmark or arbitrary net worth number - you start to feel grounded and in control of your path. Your money decisions suddenly have context, and the context keeps you motivated to continue working towards the goal.

You stop wondering if you’re doing “enough” because you actually know what enough looks like. Freedom stops being this vague dream about “someday” quitting your job.

The Takeaway:

  • Clarity beats motivation every time.

  • You don’t need millions - you need a plan.

  • Freedom starts with knowing your number, not hitting it.

If you take one thing from this, let it be this: run your numbers!!!!!!

Because the second you do, everything else - your budget, your goals, your financial decisions - start to make more sense.

If you enjoyed this newsletter, join me on your money review in this weeks youtube video!

💡 Ready to take your financial power back in 2026? Start by tracking your numbers in a tool like the Personal Finance Dashboard!

Wall Street Isn’t Warning You, But This Chart Might

Vanguard just projected public markets may return only 5% annually over the next decade. In a 2024 report, Goldman Sachs forecasted the S&P 500 may return just 3% annually for the same time frame—stats that put current valuations in the 7th percentile of history.

Translation? The gains we’ve seen over the past few years might not continue for quite a while.

Meanwhile, another asset class—almost entirely uncorrelated to the S&P 500 historically—has overall outpaced it for decades (1995-2024), according to Masterworks data.

Masterworks lets everyday investors invest in shares of multimillion-dollar artworks by legends like Banksy, Basquiat, and Picasso.

And they’re not just buying. They’re exiting—with net annualized returns like 17.6%, 17.8%, and 21.5% among their 23 sales.*

Wall Street won’t talk about this. But the wealthy already are. Shares in new offerings can sell quickly but…

*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.

WEEKLY RECOMMENDATION

We’re Living in Two Different Economies: My favorite Substack - Your Brain on Money - hits again! This article dives deep on the election of Zohran Mandami, what this means for young people and why they felt he was the right choice, the K-shaped economy, and why most people no longer believe in the American Dream. A REALLY interesting read - and I highly suggest subscribing to her Substack! I just upgraded to paid because I love it so much.

RESOURCES
What’s Happening This Week at Break Your Budget

  • This week on Don’t Depend on Daddy: We’re talking seasonal routine shifts!! My routines change in the winter, and in order to avoid seasonal depression and keep my dopamine levels high, I shift my routines around a bit. I am sharing more and giving you some tips in this episode!!

  • The Truth About Financial Independence: If you enjoyed this newsletter, I share more details in this weeks youtube video!

LOOKING FOR MORE?
Check out ALL of my Money & Career Resources!

xoxo,

Michela