Levels of Financial Freedom

My aim is to get to the top level by the time I am 42 years old maximum - here are some steps you can take to work your way up  7 Steps to financial freedom

Level 0 — Financial Dependency

• Debt payments and living expenses are greater than income

Level 1 — Financial Solvency

• Can meet all your payments by yourself without outside help

Level 2 — Financial Stability

• Have an emergency fund with 3–6 months worth of monthly expenses

Level 3 — Debt Freedom

• Free of bad debts or all debts

Level 4 — Coasting Financial Independence

• Enough money to choose jobs with lower pay with less stress or more fun, “Freedom from employer”, putting enough away already for retirement etc

Level 5 — Financial Security

• Cashflow from investments can pay for minimal living costs but not luxury lifestyle

Level 6 — Financial Flexibility

• Ability to live off investment cashflow but need to be flexible in bear markets -12.5x annual expenses (half of the 4% rule)

Level 7 — Financial Independence

• x25 annual expenses in the stocks and shares account (4% rule)

Level 8 — Financial Freedom

• Cashflow is greater than financial independence plus able to travel or live anywhere

Level 9 — Financial Abundance

More than what you will ever need maybe 3x or more than your financial freedom amount, which allows for severe bear markets.