How to achieve each level of financial freedom

Financial advice is frequently requested from me and as you might imagine, some questions are easy to answer, while others can be challenging to answer. Some questions arise as a result of saved funds, e.g., I have x amount of saved funds and I don't know what to do with it. Some of the time it has to do with outputs - what do I need to do to get x amount in five years? Sometimes it's a combination of the two. There's nothing wrong with these and there's a sensible and well-established way to select one.

It is only possible to explain what you can do by showing the other person how to come to their own conclusion. This is simply due to the fact that everyone has a different answer. In this difficult category, there's one question that comes up often: "How do I achieve financial freedom?" Although it implies a similar thing to most people; financial freedom means not having to worry about money at all, and knowing this with a high degree of certainty.

Though most people have probably dreamed this for a long time, it has become more common to articulate it in recent years. Since earning money has become the focus of our lives, the freedom we so crave is a permanent break from this routine. In order to achieve financial freedom, one must not have to worry about earning money for the rest of their life. Some people do not need to work. Most of us are still working when we reach that point, but there are people who inherit large inheritances, and there are people whose burden we taxpayers must bear our entire lives. And if at all.

Understanding different levels of financial freedom require that they be clearly defined in order to be truly understood. If you search the internet for what many authors have written, this is one of the lists you might find.

Freedom from financial constraints

• Knowing your financial position and what you are capable of achieving brings clarity.
• A person who is self-sufficient is able to cover all their expenses on their own.
• Without being paid each month, they are able to live on their own
• You are stable when your living expenses are paid for six months and your debts are paid on time.
• Flexibility: When you have a savings account that can cover two years of living expenses.
• If you are financially independent, you do not need to work and can live off of your investment income.
• There's always a bit of padding when it comes to wealth because you'll have more cash than you'll need.

It's clear that the number seven was padded just a little bit to reach the end of the line. Nonetheless, after reading through the levels, you are likely to agree that the general concept is becoming clearer. Also, understanding and introspection are essential components of the initial step. Although few of us are likely to realize the highest levels of financial freedom realistically, this does not mean that we should not aim for them systematically.