Financial freedom has levels pretty much like poverty has dimensions.
If you are new to the levels of financial levels, you only have to look at the main events that are happening in your life.
Are you a stay at home teen or 20 something?
If that’s you, then you should know that you are financially dependent. And that would be level 2 of the hierarchy.
If you have moved on to live in your accommodation, or with your partner, you might be in the category of those folks who are just managing to keep their heads above the water. You earn enough to pay the bills and nothing more.
It turns out that majority of you folks are stuck at this stage and am going to share with you what am doing to make sure that I do not end up stuck at this stage.
Level four is the stage where you have no credit cards, personal loans, car loans etc.
A lot of people fall under this close.
This means that you are in a better position to be able to make significant moves to improve your chances of getting financially free.
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If you have run student loans to earn your university degree, and you have paid off your loans then you might be at level five.
No mortgage after you have paid off is the best and probably many people who have a 9-5 job aspire to get into.
Mortgage payments suck the life out of your finances.
Now I must also point out to you guys that when you have assets that can pay off your mortgage if needed, can be considered as mortgage paid.
The only thing I would point out to you is holding on to cash assets is always good due to opportunity costs in case something comes up requiring the use of that cash than paying the mortgage in full only to buy your car by loan.
The stage 7 is where you have no mortgage or loans. All you have is the wealth-building opportunity level.
Level eight is where now you kind of are financially independent just about bare bones.
Level 9 is when you can comfortably afford anything you need without worrying about running out.
Level 10 is when you are able to offer help to others, you can afford charity even investment outside your business
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