You need to know two Magic Numbers.  The first is the amount of capital (investments) that you need to be financially independent.  The second is the amount of money you need to save and invest (cash flow) to get there.

By J. Andre Weisbrod

I first came up with the Magic Number concept in the 1980's.  At that time I realized clients did not really understand how income was produced much less how much capital was needed.  So I embarked on an education campaign that included individual meetings as well as group workshops to help people understand what they needed to do to be independent.  The result was a simple planning worksheet that allowed people to play "what if" to discover their "Magic Numbers."  More on this later.

If one examines the nature of financial independence and the people who have acheived it, a number of qualities stand out.  First, independent people are generally hard working, disciplined and in control.  Second, they are not necessarily "rich."  Rather they understand what living within means actually.. er.. means.  Third, they tend to be entrepreneurial and creative as business owners or employees.  Fourth, they are planners who are goal-oriented and willing to sacrifice to reach their goals.  Within that umbrella, the following are the top actions to become financially independent:

1. Create and build your own business.
2. If you are an employee, be entrepreneurial about your career.
3. Save and invest on a regular basis, putting aside as much as possible.
4. Be an owner of assets that have intrinsic, long-term value. 
5. Identify and manage risks effectively.
6. Get good advice from people (professional and non-professional) who are role models. 

If you would like to find out what your "magic numbers" are, then go to Cool Tools and look for the "How Much Do I Need" worksheets.