1) FINANCIAL DEPENDENCY
Rely on others for money to survive – usually people who have not started working, unable to work or have exceedingly high expenses.
2) FINANCIAL SURVIVAL
Income earned is just enough to meet the monthly expenses – living paycheck to paycheck.
3) FINANCIAL STABILITY
Having a comfortable inflow of income to pay monthly expenses, at least 6 months of emergency fund and consistent wealth accumulation for long term financial goals.
4) FINANCIAL INDEPENDENCE
When one no longer need to work for money, and is able to replace active income with passive income or huge pool of existing saving to service monthly expenses. This does not mean that one is able to live the lifestyle he/she desires.
5) FINANCIAL FREEDOM
One is able to live the lifestyle one desires without working. The amount needed to achieve this dependent on the type of lifestyle he/she desires.
Assess which level we are at now and strategise on how we can reach our desired level.#