Learn more about moneyandinvestments with this collection
How to develop a healthy relationship with money
How to create a budget
The impact of emotions on financial decisions
The financial spectrum: Level 0 - 6
- Level 0: Complete financial dependence on the kindness of strangers who have no vested interest in your success.
- Level 1: Complete financial dependence on people who want you to succeed.
- Level 2: Complete financial dependence on people with a vested interest in your financial outcome.
- Level 3: Ability to partially support yourself by adding value for others.
- Level 4: Ability to fully support yourself by adding marginal value for others.
- Level 5: Enough savings to cover run-of-the-mill problems.
- Level 6: Enough savings to cover large, unforeseen problems for a longer period.
23
184 reads
The financial spectrum: Level 7 - 11
- Level 7: Retirement savings, education savings, and avoidance of consumer and auto debt. You can see a time when your current savings will give you independence.
- Level 8: The ability to pick a job or specific customers and say no to unnecessary hassle.
- Level 9: Becoming comfortable with your social status to avoid flashing your expensive consumer goods.
- Level 10: You can say no to banks whose debt you don’t need, including mortgages.
- Level 11: You could support yourself for a year or more of your liquid savings.
23
167 reads
The financial spectrum: Level 12 - 16
- Level 12: Interest and dividends cover more than half of your living expenses because of a slim lifestyle rather than huge assets.
- Level 13: Your assets and reasonable return expectations will cover basic living expenses for longer than your life expectancy.
- Level 14: Your assets cover above-basic living expenses with assets and their reasonable return expectations.
- Level 15: Independence lets you do and say what you please since you don’t rely on the support or opportunities other people could offer.
- Level 16: Meaningful philanthropy.
23
149 reads
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