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1/ The 6 Stages to Financial Freedom.
Did you know there’s 6 stages to financial freedom? Six!
Before reading this thread, comment what you think they are (I bet you don’t know all of them
) or like the stage you’re at.
The six stages are…
Did you know there’s 6 stages to financial freedom? Six!
Before reading this thread, comment what you think they are (I bet you don’t know all of them
) or like the stage you’re at. The six stages are…
2/ Stage 0 - Dependence/Debt
Your existence is funded by others - you are fed, clothed and sustained by someone else. AKA your parents.
While normal up to 18, 52% of Millennials are yet to leave home.
The youngest Millennial is now 24 - the oldest 39.
Your existence is funded by others - you are fed, clothed and sustained by someone else. AKA your parents.
While normal up to 18, 52% of Millennials are yet to leave home.
The youngest Millennial is now 24 - the oldest 39.
3/ If it’s not parents, it’s creditors. Millennials are US$1 Trillion in debt and spending more than what they are earning.
Unfortunately, most are in stage 0...
Unfortunately, most are in stage 0...
4/ Stage 1 - Solvency
You’re up-to-date on your bills and meeting your financial obligations. You’re actively paying down debt and you have some disposable cash.
No handouts, no credit. You’re on the first step to building real, lifelong wealth!
You’re up-to-date on your bills and meeting your financial obligations. You’re actively paying down debt and you have some disposable cash.
No handouts, no credit. You’re on the first step to building real, lifelong wealth!
5/ Stage 2 - Stability
You are financially stable if you hit basic financial goals such as
Free from consumer debt.
You’re able to pay high growth debt like a mortgages.
Unexpected events are covered.
Your income supports you.
You are saving!
You are financially stable if you hit basic financial goals such as
Free from consumer debt. You’re able to pay high growth debt like a mortgages. Unexpected events are covered. Your income supports you. You are saving!
6/ Stage 3 - Agency
This is one of the most important stages to financial freedom. You are 100% debt-free from your student loan or mortgage and decent savings.
This is the last stage of the “surviving” category and now you’re on the way to BUILD WEALTH VIA INVESTING.
This is one of the most important stages to financial freedom. You are 100% debt-free from your student loan or mortgage and decent savings.
This is the last stage of the “surviving” category and now you’re on the way to BUILD WEALTH VIA INVESTING.
7/ Stage 4 - Security
You've invested your savings across a broad range of assets and your income covers the basic standard of living.
In other words you can afford to be a bit bougie
.
Not much more than that but you could do this indefinitely and be happy for life!
You've invested your savings across a broad range of assets and your income covers the basic standard of living.
In other words you can afford to be a bit bougie
. Not much more than that but you could do this indefinitely and be happy for life!
8/ Stage 5 - Freedom
This is where the tables turn! When you hit this stage you are financially free.
Lifestyle is supported by investment income.
Don't need to work.
Miles above the poverty line.
Those seeds you planted are now trees you take shade from.
This is where the tables turn! When you hit this stage you are financially free.
Lifestyle is supported by investment income. Don't need to work. Miles above the poverty line.Those seeds you planted are now trees you take shade from.
9/ Stage 6 - Abundance
Financial freedom is defined by independence but there’s a BOSS stage, too.
That is when your passive income pays for everything and more!
This is also where millionaires and billionaires sit and where a large part of your FU money is disposable!
Financial freedom is defined by independence but there’s a BOSS stage, too.
That is when your passive income pays for everything and more!
This is also where millionaires and billionaires sit and where a large part of your FU money is disposable!
10/ The six steps to financial freedom are straight forward but require diligence and curiosity.
For diligence, get daily reminders of financial concepts via http://www.prosperapp.com .
For curiosity, @madfientist is awesome at covering the basics for you.
Which stage are you?
For diligence, get daily reminders of financial concepts via http://www.prosperapp.com .
For curiosity, @madfientist is awesome at covering the basics for you.
Which stage are you?
