This is Optimal Finance Daily.

How to Reach Financial Independence on a Low Income by Christina Browning of Our Rich Journey.com.

One question we get a lot is, how do I save money for financial independence when I don't have much money?

People often think that you need to be on a six-figure income

while saving 70% of it to reach financial independence

and retire early.

But that's just not true.

The key to reaching financial independence

is by focusing on the money that you do have

and prioritizing how you spend it.

I truly believe that financial independence is for everyone,

regardless of income. That's because it's based on your own expenses, not the specific expenses of

millionaires. There are three things you need to focus on to achieve financial independence,

making money, saving money, and investing the money that you make and save.

I want to talk about saving, how you can save more money to put towards your financial

independence goals, no matter what your income level is.

Number one, calculate your savings rate.

Your savings rate is the percentage of your income that you're saving.

To calculate your savings rate, you need to divide your monthly savings amount by your monthly net income.

For example, say you earn $2,000 a month and put $200 of your earnings into a 401k account.

That means your savings rate is 10%.

Yes, I include 401K contributions as savings because anything that contributes

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