In July 1831, as Thomas and other family prepared to move to a new homestead in Coles County, Illinois, Abraham struck out on his own. He made his home in New Salem, Illinois, for six years, where he found a promising community, but it probably never had a population that exceeded a hundred residents. New Salem was a small commercial settlement that served several local communities. The village had a sawmill, grist mill, blacksmith shop, cooper's shop, wool carding shop, a hat maker, general store, and a tavern spread out over more than a dozen buildings. Offutt did not open his store until September, so Lincoln found temporary work in the interim and was quickly accepted by the townspeople as a hardworking and cooperative young man. Once Lincoln began working in the store, he met a rougher crowd of settlers and workers from the surrounding communities, who came into New Salem to purchase supplies or have their corn ground. Lincoln's humor, storytelling abilities, and physical strength fit the young, raucous element that included the so-called Clary's Grove boys, and his place among them was cemented after a wrestling match with a local champion, Jack Armstrong. Although Lincoln lost the fight with Armstrong, he earned the respect of the locals.

During his first winter in New Salem, Lincoln attended a meeting of the New Salem debating club. His performance in the club, along with his efficiency in managing the store, sawmill, and gristmill, in addition to his other efforts at self-improvement soon gained the attention of the town's leaders, such as Dr. John Allen, Mentor Graham, and James Rutledge. The men encouraged Lincoln to enter politics, feeling that he was capable of supporting the interests of their community. In March 1832 Lincoln announced his candidacy in a written article that appeared in the Sangamo Journal, which was published in Springfield. While Lincoln admired Henry Clay and his American System, the national political climate was undergoing a change and local Illinois issues were the primary political concerns of the election. Lincoln opposed the development of a local railroad project, but supported improvements in the Sangamon River that would increase its navigability. Although the two-party political system that pitted Democrats against Whigs had not yet formed, Lincoln would become one of the leading Whigs in the state legislature within the next few years.