Financial freedom is not an all-or-nothing scenario. It is a journey. Here, we are going to read about the levels of financial freedom.
The very first level of financial freedom starts with meeting your financial obligations without any requirement of help from others.
The second stage is where you have adequate cash for emergencies and no debts. Your income is more than your basic expense of living.
At this stage 3, you have organized and built up a significant savings pile and investment portfolio. Your excess income is being saved and invested.
Security is considered the first step toward financial independence. It is the level where your income is capable of taking care of living expenses.
Independence is something we all seek since we come to senses and be aware of society and relationships.
By this point, your investment portfolio is making more bucks than you require in your life. However, the gap between the things you have and the things you need will keep growing over time.