02:50 Financial dependence You are still dependent on someone else to provide for you. If you’re a young child, this is entirely fine. But if you’re a grown-up, you probably do not want to stay at this level for too long. Most adults would be unhappy staying at this level.
05:10 Financial survival You earn just enough income to cover your expenses. You are able to pay all your bills, but you do not have enough money left over to save. Nonetheless, you no longer require someone to financially support you.
07:25 Financial stability You consistently earn enough money to cover your expenses and have enough left over to start saving. You have at least six months’ worth of living expenses in your emergency fund. You also manage your debt well and are on track to pay off your loans in due time. It is at this level that your stress levels about money start to come down.
09:35 Financial security With a stable income and enough savings in the bank, you can now look forward to growing your wealth and planning your retirement. The extra funds you have now can be invested in securities (no pun intended) that suit your risk profile and financial goals. The more money you set aside for the right investments, the faster you can reach your goals.
11:53 Financial independence You have steadily invested for a number of years and built a portfolio of solid, long-term investments that pay you enough passive income to cover your day-to-day living expenses into your retirement (or you have enough to liquidate to do the same). This essentially means that you no longer need to work another day in your life if you choose to; you can now rely on your investments to fund your lifestyle.
14:00 Financial freedom You have continued to grow your wealth to a scale where your investments and passive income can now easily fund your preferred lifestyle. Whether it’s travel around the world, luxury goods, or unique experiences, you now have the wealth to pursue your dreams and aspirations. This is a level many people dream about, but many never attain.
16:41 Financial abundance The haves and the have-yachts. You have more than you will ever need. At this level, your focus will be how you can be a proper steward for your wealth and the legacy you want to leave behind for future generations.
