7 Levels of Financial Freedom

7 Levels of Financial Freedom: How To Work Your Way Up, According to Experts

GOBankingRates  Andrew Lisa  Sat, August 6, 2022

Whether you’re living to work, drowning in debt, struggling to save, overspending, or existing from paycheck to paycheck, you’re all too familiar with the invisible chains of financial stress. The answer, of course, is financial freedom, but with so many bills and so little money left over at the end of the month, how could anyone get from here to there?

Grant Sabatier — a self-made millionaire and golden child of the FIRE movement — has created a roadmap that he says can bridge the gap between financial servitude and financial independence. There are seven levels, and if Sabatier is right that most Americans are already at the second level, you only have six more rungs to climb.

Level 1: Clarity

Step one is to assess and clarify. It’s time to take inventory of where you are financially and develop a clear picture of where you’d like to be. That means checking your credit and revisiting your bank and credit card accounts. You’ll also have to do the unpleasant job of gathering your bills and tabulating your monthly expenses.

You do have to do it, but if you keep up with it after that, you’ll only have to do it once.

“In order to take control of your finances during these changing times, as well as get a hold of your spending and investments, it’s important to create a financial plan,” said Radu Tyrsina, CEO and founder of Windows Report and Reflector Media. “To successfully manage your financial progress you need to be able to track your net worth, spending, and investments in order to get a larger view of where you stand.”

Level 2: Self-Sufficiency

When you clear this level, you’re standing on your own two feet. You’ve moved out of your parents’ house and you’re off any public assistance you’d been relying on to get by.

It’s important to note that self-sufficiency and financial independence are two different things. At level 2, you’ll probably be living paycheck to paycheck, struggling with debt, or both, but you’re no longer dependent. Although it might not feel like it, you’re finally in control of your own destiny.

Level 3: Breathing Room

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https://news.yahoo.com/7-levels-financial-freedom-way-130121143.html