Step two: Be realistic
Now determine a path to get there, and be realistic. If your goal is to retire in 20 years, but you have a 30 year mortgage, you have to realistically plan to pay off your mortgage in time, and still be able to buy new cars when you need them, repair furnaces, etc. So, don't just write something down and expect it to happen, it takes time and patience to achieve financial goals.

Step three: Eliminate debt by steps
Debt is what keeps you from being free, and having independence, so this may seem like an obvious step to obtaining permanent financial independence, but it is important. Make a list of all of your debts, the term or the debt, the interest rate, and the amount of monthly payment. Then prioritize your debts. Start with term, shortest first, then look at interest rate. So, for example, it you have a car loan at 7% that you owe $3000 on and 5 years left on your loan, a student loan at 3% that you owe $15,000 on and have 10 plus years left, and a credit card at 13% that you owe $8000 on with monthly minimums but no payoff date, you would prioritize in this order, credit card, car, student loan. This is because even though you owe more on your student loan, your interest rate is low. So, pay off your highest interests first. Obviously you are going to need to make your minimum monthly payments to all of these things, but add extra to the top priority. Set a time frame you will have it paid off in. So, say your credit card goal is to have it paid off in 3 years, by paying X amount each month. Your car loan has, say 5 years left, and your student loan is indefinite, but on a 10 year amortization schedule. So, make your X payment amount on your credit card for 3 years. When it is paid off, add X to what you are already paying Y on, and guess what, that remaining 2 years could drop to even 2 months, now you have X and Y to add to Z, and though your remaining term may be 6 years 10 months, if you apply all of X, Y, and Z you suddenly eliminate your debt much faster.

Step four: don't incur new debt, especially unnecessary
As you pay off your debts in steps, combining payments to pay things off faster, you want to make sure you do not incur more debts. Make that car last you just a little bit longer, don't move just yet. Don't get that credit card, time share, or boat. Be patient.

If you can pay off all of your existing debt without incurring new debt, suddenly you have a lot of money each month to work with, and thus the ability to get the things you want without going in debt for them.financial independence. This means that suddenly instead of $800 a month in payments, you have $800 extra a month that you can use for whatever

Step five: eliminate.
Many people do not realize the importance of permanent financial independence. Financial independence means being able to invest without putting your home or family on the line. Permanent financial independence means not having to work at all once you retire, and being able to do all the things you have dreamed of doing.

One of the steps to get to this point is to get out of debt and increase your monthly discretionary income. You want to do this without changing your lifestyle too much. So, go through your check book, bank statements, etc. Sort through things, determine where you are spending your money. It may surprise you to see that while you are spending $1200 a year on pesky utilities, you spent $1500 on seeing movies at the theater. Once you get a clear picture of how you spend your money, you can learn where to eliminate excess spending. It also gives you the motivation to do so.

Step six: save.
Permanent financial independence means having money to do what you want. One of the best ways to do this is to avoid debt altogether. Debt means interest, and you are a slave to interest. So, rather than buy something and pay interest, wait a couple extra months, use that extra money you found with the above steps, and buy it when you can pay cash. If you follow the above steps you will have extra money, and thus more financial freedom, and you can make that state permanent by saving for things you want instead of needing instant gratification.