Barely Half of Americans Are Financially Independent: Financial Educator Rudri Patel Explains Why

If you've ever felt stuck in a job, living situation or relationship because it was too financially impossible to leave, you're not alone, according to an August 2026 MoneyLion survey. Over 54% of Americans surveyed say they’re fully financially independent and don’t rely on anyone else financially. However, more than 3 in 4 respondents say money has kept them somewhere longer than they wanted to stay.

Although people still believe financial independence is more than just a possibility, an overwhelming majority, almost 76%, think it’s getting harder to be financially independent because of external factors like housing costs, inflation, lack of income and rising prices for daily expenses.  

Despite these eye-opening numbers, as a certified financial health counselor, I believe there are proactive steps you can take to work toward financial independence. Investing early, for example, even if it’s a small amount, can make a difference in your future financial prospects. Most people surveyed, about 60%, wished they started saving and investing earlier. Starting now can help you avoid that same regret and put you on a stronger financial path.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

Key Findings

• Over 54% of Americans say they are currently financially independent. Another 10% say they depend on others more than they’d like to admit. 

• About 30% don’t expect to reach financial independence until after 40 years old, if ever. By comparison, just over half expect to get there by age 30. 

• More than 76% say it will be harder to gain financial independence for future generations. Among respondents, 40% believe it will be much harder and that the window is closing. 

The Financial Independence Playbook Is Changing

• Nearly 60% of Americans would advise their younger selves to start saving and investing earlier.  

• To be truly financially independent, 1 in 3 Americans surveyed say they need to make more than six figures annually.  

• An overwhelming 79% of Americans have received financial help from a parent or family member at least once, including a little over a third who received help within the past year.  

• Almost 70% believe that financial independence takes both luck and hard work. 

• Of those surveyed, 72% of Americans believe their home or school didn’t offer financial literacy. A third of these people wished they had more education around budgeting and building good financial habits.

What Does Financial Independence Really Look Like?

Financial independence is subjective and isn’t necessarily universal among the Americans that MoneyLion surveyed. The survey revealed that many are still chasing and redefining “financial independence” as they move toward a specific income.  

Only 55% Say They’re Financially Independent While Others Are Still Working on It

A little over half of those surveyed said that they don’t rely on others to help them pay for their financial decisions. Although this representation of financially independent individuals sounds optimistic, many Americans don't align with this perspective:

• Fully financially independent: 55% say they don't rely on others financially.

• Still working toward independence: 45% aren't fully financially independent.

• Relying on financial help: Nearly 10% openly state they rely on others to help them pay for bills and other expenses.  

Most Believe You Achieve Financial Independence When You’re Young or It Doesn’t Happen at All

It may come as a surprise, but 53% of Americans believe that financial independence should come between ages 25 and 30. Others expect it to take longer, or not to happen at all:

• About one in six expect it by their 40s.

• Another one in six think it will arrive after age 40.

• Nearly one in seven confess it may not happen at all.

Based on this data, it appears that most people believe financial independence is more of a “reach,” rather than a given. Even if financial independence is attained, it comes much later in life according to the survey.  

Most Americans Say You Need $75,000 or More for Financial Independence

According to the survey, achieving financial independence requires an income of $75,000 or more. For some, the bar is set even higher:

• Among those surveyed, 17% believe that their income has to fall between $100,000 and $150,000 to be financially independent.

Financial independence, for those surveyed, means not only having enough for basic expenses, but also having enough of a cushion for unexpected emergencies, travel and entertainment.  

Most Believe Financial Independence Is Achievable, But Much Harder To Attain

The good news is that almost 50% believe financial independence is achievable, but also concede that it’s gotten much harder to attain.

• About 27% of those surveyed stated it's become much harder to achieve financial independence.

• Another 15% believe the economy has made it impossible to attain that goal.  

Financial Stability Is More Important Than Financial Independence

Despite wanting financial independence, 42% of those surveyed still preferred financial stability. For many, having enough to cover basic needs like housing, food, transportation, healthcare and other essentials, takes priority.

• Almost 30% prefer financial independence over financial stability.

• Another 23% equate financial stability with financial independence.

Why "Making It" Doesn't Mean the Same Thing As It Used To

"Making it" has a different definition today. In the past, the traditional perspective meant having a steady income from a job you'd held for several years, a home you planned on leaving to your kids and the security of knowing your salary could support your family.

These norms have shifted, and now there are multiple variations of what “making it” means.  

Overall Cost of Living Is the Main Reason People Can’t Become Financially Independent

People don’t view their lack of financial independence as a personal shortcoming or failure. Instead, they point to financial pressures:

• Of those surveyed, 28% believe the overall cost of living is keeping them from financial independence.

• Another 27% don’t think their income is high enough.

• Housing costs and debt were also noted as factors contributing to a lack of financial independence.   

As a certified financial expert, I’ve seen the costs of healthcare, housing costs and inflation go up every year, while salaries stay the same or rise only incrementally. People aren't struggling to get ahead because they don’t want to work, but because the gap between income and basic expenses has become too difficult to close.

Relying on Family Help Has Become Normal

As people are looking to fill in the gap between their income and rising costs, many are turning to their families to help make their finances work. And for many, that help hasn’t been a one-time ask:

• Over 79% of those surveyed have received financial help from family.

• About 33% have asked for help within the past year.

With housing costs becoming cost-prohibitive for adults in their twenties, there’s been an influx of adult children moving back in with their parents.  

Working Hard Matters, But Luck Seems To Matter More

One of the revealing facets of the survey is how people view the role of luck and hard work in becoming financially independent. Almost 70% believe that luck plays some role.

It’s easy to see why this perspective has shifted. Working hard isn’t always enough when so much can depend on where you live and the financial conditions of your state, your occupation, when you bought your house and other factors outside of your control.     

Small Steps That Can Move You Closer to Financial Independence 

Although becoming financially independent may seem like a reach, it is possible. You may believe luck plays a part, but small financial habits can compound over time. Here are some of my recommendations:

• Don’t delay investing: You may think it’s not the right time to invest, but that’s the number one financial move people surveyed wished they’d taken earlier. Even if you invest $250 a year, it’s better than doing nothing at all. You don’t have to wait for a “magic number” to get started.

• Set it and forget it: One of the easiest ways to save is to automate your paycheck so a portion goes directly into a savings account. It’s easier to take care of a financial to-do when you make it automatic.  

• Have an emergency fund: With so many people feeling trapped because of money, it’s important to have an emergency fund so that you don’t fall into a cycle of debt and are forced to stay in a situation you wouldn’t otherwise choose. Even a small emergency fund can give you the power to make a different choice.  

• Don’t let high-interest debt linger: Use the debt avalanche method to put more toward your highest-interest debt first. Saving on interest over the long term can build a pathway to financial freedom.  

• Define what financial independence means to you: You can work toward a financial goal only if you know what works for your expenses, lifestyle and budget. Don’t make another person’s concept of financial independence yours.  

• Don’t be afraid to focus on earning more: Take advantage of your employer's 401(k) plan, and if you’re due for a raise or promotion, make the request. Gaining financial independence means actively working toward it. Hoping for it isn’t a strategy.

Methodology

MoneyLion surveyed 1,000 Americans ages 18 and older from across the U.S. between July 13 and July 17, 2026. Respondents answered 25 questions about financial independence, including the income they believe it takes to become financially independent, financial support from family, barriers to independence, financial regrets and education, and how money affects their everyday lives and decisions. MoneyLion conducted the survey using PureSpectrum's survey platform.

Photo credit: Choreograph / iStock