The Seven Levels of Financial Freedom

Level 1: Clairvoyance

Determine how much money you have, how much debt you have and what you’re trying to achieve.

Level 2: Self-Sufficiency

Bring in enough money to cover your expenses without any outside help (handouts); even if it means living paycheck to paycheck.

Level 3: Breathing Room

Start putting money toward an emergency fund and investments. You also need to be downsizing, minimizing, and living as far below your means as possible.

Level 4: Stability

High interest debt has been been paid off and at least six months’ worth of living expenses is in your emergency fund.

Level 5: Flexibility

Have at least two years’ worth of living expenses saved. This money should be in diversified accounts. If you’re considering quitting your job; DO IT!

Level 6: Financial Independence

Achieving financial independence means that you can live solely off your investments. At this level, you must invest a large percentage of your income.

Level 7: Abundance

Reaching this level means you’ve achieved abundant wealth. You no longer have to monitor swings in your portfolio because you have more money than you’ll ever need. Money is no longer an essential part of your existence.