But you can work your way through a path that leads to financial independence and complete abundance. That path has stages and you should celebrate your progress at every stage!
In today’s show, I share with you my ideas regarding the stages of financial independence. I believe this is a useful roadmap to help you navigate from where you are to total Financial Abundance.
Stage 0: Financial Dependence
Stage 1: Financial Solvency
Stage 2: Financial Stability
Stage 3: Debt Freedom
Stage 4: Financial Security
Stage 5: Financial Independence
Stage 6: Financial Freedom
Stage 7: Financial Abundance
My challenge to you is to take these stages, understand where you are, and lay out the numbers of your own situation. How much do you need to be financially stable? What’s your number for financial independence? Financial freedom?
Write it down clearly for yourself and then keep working on it!
Enjoy the show,
Joshua
Links:
- Here is the new page on the website: http://radicalpersonalfinance.com/finance-topics/stages-of-financial-independence/
- Become a Patron of Radical Personal Finance! http://radicalpersonalfinance.com/patron
Loved this episode. The stages of financial independence are an extremely useful to stay motivated and keep an eye on the bigger picture. I also really like how you break down stage 5 into smaller victories. Its easy to lose sight of the end goal in this step as for most people this will take the longest to fully achieve. Passive income slowly covering more and more of your life expenses can really show progress more frequently than looking at your account balances.
Joshua,
I just finished listening to this episode and thought it was a very useful framework for looking at your finances. While I love the idea of financial independence, I think that that is a huge goal that can seem overwhelming for someone trying to get started. We were able to quickly get to stage 3 working toward stage 4 within a few months of getting done with college and it has been huge to allowing us to live a very satisfying life and have large degrees of financial freedom long in advance of achieving financial independence.
Best,
Chris