The definition varies depending on your age. A financially independent 25 year old is very different than a financially independent 85 year old. Generally speaking, here's how we think about it:

1) Full Emergency Funds - Ability to cover life's unexpected twists. (40% of Americans owe collectors money for times they were sick).

2) Not swimming backwards - A manageable debt profile that has no high interest debt.

3) Ability to retire at a "reasonable" age - Not all of us will be able to stop working at 67, but all of us should be able to retire and cover all of our retirement expenses before our bodies give out.