8 Levels of Financial Freedom (Financial Independence)

8 Levels of Financial Freedom (Financial Independence)

Reaching financial freedom can be quite an accomplishment. Years of dedication have likely been set forth in order to reach that point. However, how do you know exactly when you've reached financial freedom? When you can stop working? When you can travel the world or when you can purchase even the most expensive items without a significant impact to your net worth? In the same way there are different meanings for the word rich or wealthy, financial freedom can mean various things to different people. Breaking the phrase down into smaller, more digestible terms can clear up some confusion. These are 8 levels of financial freedom or financial independence. You can use them as a guide to help you distinguish where you are now and where you'd like to go.

[bernie]

For me, "financial freedom" means you no longer need to worry about money. It has less to do with how much money you have, but rather, how much you owe. I retired in 2016 debt free. Being debt free allowed me to achieve "financial freedom" at a much lower income than you might think. Being debt free is the key to getting to the point where you don't worry about money. Being able to do what I want without money worries is priceless. Being debt free does that for me. I could not even tell you what my "net worth" is. Why? Because I don't care. I owe nothing and I want for nothing. It just doesn't get any better than that.

[RazrSharpProductions]

28 and I'm about a level 3. Aside from 2 vacations a year, I live as if I'm on level 1. I don't see a point in changing my lifestyle until I'm at least a level 7. I get more joy watching my portfolio grow than I do from conventional things.

[shivambakhshi]

I am at level 5 (building towards 6) right now. Being poor and worrying about money sucks. It’s okay to honestly live in a smaller apartment in a relatively cheaper area( as long as it’s safe) if it means you can live financially free and possibly leave something for you children, as much as it may be.

[dutch]

I think level 6 with 1mm on investment, house paid and social security pension plus military retirement, and 36 months emergency funds...owned condo near the beach..rent boat and travel business class is good enough for me..healthy is outstanding..

[alessiomencaroni]

I am an employee. From a wealth point of view I guess I can consider myself at level 4 - "enough to not have to work so much" - but being an employee I cannot decide to cut my working time arbitrarily. I hope to reach level 5 - "enough for a basic retirement" - soon. I came to China yesterday to start an expat period here, which should help me with this goal :)

[GabrielPerez-mlgo]

Im 23 and I feel behind given that I would only be at level 1. I am a recently graduated Systems and Computation engineer, i do not have any kind of debt since ive been winning scholarships for every semester I took. I only have like 1 thousand saved as an emergency fund but is growing very slowly.

[jaldeborgh]

Money equals freedom and reducing your standard of living is very difficult. I think the idea of levels of financial freedom is a helpful but should always be taken with a long run view as the economy goes up and down. In 2006 when the markets crashed there were a lot of people who thought they were at level 7 who suddenly felt they were back at level 4 or 5. Many panicked and made bad financial decisions that drastically reduced their wealth in the long run. The higher you are on the 8 point scale the more you need professional financial help, wealth preservation is important and critical in retirement.

[hiphoplova]

Want to reach level 3, 4 then jump to 8 🤩🙌🏾

[unorthodoxsavings]

This is important for people to see, once they hit that first milestone it’s super addictive to keep on going. Great video !

[simonralph]

Just recently got laid off and it feels like i'm beginning from the scratch, i have been researching on investing and I came across an investor on an internet radio who mentioned making well over $450, 000 in 3months with an investment of $230, 000 I'm a beginner and i really would appreciate any insight or clue on how to make good results

[citizenoftheyearCC]

Yes I agree working when it is my option is def the ultimate flex

[akmclemore]

Super informative bro!! Keep up the great work

[Diomedes]

I recently achieved level 6 at the age of 48. I have no debt and my lifestyle has always been relatively frugal. I'm inherently a minimalist by nature. I'll likely continue to work for another 2-3 years to achieve my version of level 7 and then will be calling it quits at that point. Honestly, my only reason for working until level 7 is not for lavish spending, but just that I would sleep better knowing that I over achieved my retirement goals.

[JoshuaMackos]

I’d say my goal is in between level 6 and 7. I do want to travel quite a bit and be able to take people on wild vacations. However I don’t see myself always doing that. So I thin right between the 6 and 7

[poacheddeer]

Level 3 at age 34. Pushing hard to be at 4

[MichaelBordenaro]

I'm at a level 4 now and aiming for level 7. Level 8 is probably overkill for me. Hope YouTube can help make it happen! Great video Chris! Liked and subbed 👌

[keithcitizen]

Level 6 at age 65, freedom of time is running out

[TheMoneyPlantChannel]

Great video Chris! Achieving each milestone provides great motivation to continue on the path to full financial independence!

[ELIFI]

I should be at level 7 at some point in 2021 (when I sell my business). My next goal will be level 8...through YouTube 🤔 LOL Well done as always Chris!

[CGB.SPENDER]

If the sp500 crashes like in the 70s you wont break even before 20 years.