As we move from the solemnity of Holocaust remembrance and Israel Memorial day into the celebration of Yom Ha’atzmaut, Israel Independence Day, Israelis are reflecting on what independence actually means.

Especially in the midst of 2.5 years of an existential war and surging global antisemitism, we celebrate national sovereignty, the miracle of a country that can both defend itself and chart its own destiny. While many may have taken these things for granted and not given much thought to what having a country actually means, the October 7 wakeup call has changed that; national pride has surged, even with the problems that exist.

I think that’s a welcome change. Instead of people complaining with the state, they are now grateful for it. They understand that no society is perfect, which fosters a renewed focus on improving the country.

Put down your flags and BBQ tongs. Put your adult beverages back in the fridge. As Israelis gear up for Independence day, it’s a great time to look at your own financial situation and make sure that you are on the road to financial independence as well.

What is financial independence? While some might think that it’s setting around the world in your own private jet, I am going to stick to the definition used by Wikipedia: “financial independence is having sufficient personal wealth to live indefinitely without having to work actively for basic necessities. In the case of many individuals whose financial circumstances fit this description, their assets generate income that is greater than their expenses. Under such circumstances, a person is financially independent.”

Are you financially independent? It’s a question worth asking, because while Israel has achieved remarkable economic strength in a relatively short time, many individuals still struggle to achieve their own version of independence. Yom Ha’atzmaut is therefore not just a national milestone – it’s a powerful metaphor for personal financial growth.

Think about Israel in 1948. A fledgling state, lacking infrastructure, surrounded by enemies, and heavily dependent on outside support. Fast forward to today, and Israel is a global economic powerhouse, a leader in technology and innovation, and largely economically self-sufficient.

That transformation didn’t happen overnight. It required vision, discipline, sacrifice, and long-term planning.

The same is true for your financial life.

While many individuals believe that you need to be rich to be financially independent, the truth is that you just need to be able to cover your expenses with passive income. It’s not all about your assets; your expenses play a huge part in the equation as well. If you scale down your lifestyle, you can achieve independence on much more modest sums of money than you ever dreamed was possible.

As Mr. Money Moustache writes, “The bottom line is this: by focusing on happiness itself, you can lead a much better life than those who focus on convenience, luxury, and following the lead of the financially illiterate herd that is the TV-ad-absorbing Middle Class of the United States (and other rich countries) today. Happiness comes from many sources, but none of these sources involve car or purse upgrades.”

Here are three tips that can help get you on the path to financial independence.

I am a firm believer that people need to set goals to achieve sought-after milestones. If you want to effectively lose weight, you set a goal of how much you want to lose. If you say to yourself that you want to “just lose weight” without any goal of how much, you are primed to achieve minimal weight loss (if any at all). As a guide for how much money you will need in the future, I tell clients that they need about 20 years worth of this year’s expenses to make it. For example, if you spend $30,000 a year, you will need $600,000. Now, keep in mind that any pension or social security income that you will receive will lower the overall amount that you need. If you receive $20,000 a year in retirement income, then you will need another $10,000 as supplemental income, which means you would only need around $250,000 in savings to be independent.

Make saving and investing a priority. By saving and investing now, you allow your money to make more money. Start ‘paying yourself first’ every month. Whether you invest in real estate (where you get a monthly rent check) or you invest in broad based indices, focus on a slow and steady approach to building wealth. While it’s quite tempting to try and find a ‘home-run’ stock that will make you an instant fortune, far more often than not, investors end up striking out.

I always hear people say that they don’t invest because they don’t have enough money to start. They believe investing is only for the rich. I recently met with a couple that has been married for a few years and between some savings and wedding money, they had accumulated $32,000. They basically took the money and stuck it into a 0% interest savings account. When I asked why they never invested the money, they said that they figured that it was such a small amount that it wasn’t worth it. Had they invested, it would have been worth over $50,000 by now.

Start making smart financial decisions and you can achieve financial independence.

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates. aaron@lighthousecapital.co.il

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing.