PERSONAL FINANCE – 3 LEVELS OF FREEDOM

There are 3 levels of financial achievement. Each level results in increasing freedom to pursue a fulfilling life:

1. Financial Stability. – This level gives you the peace of mind in knowing that your life is not compromised by any major negative eventualities. It is achieved when:
* You have enough money to cover your current expenses for a minimum of six months.
* You have insurance to protect you and your family against any major crisis or eventualities.
2. Financial Security. – This level allows you to maintain a very BASIC lifestyle based on passive income only. You will probably still need to continue working in order to maintain a certain lifestyle, but any disruption in your primary income is not going to threaten your basic livelihood. It is achieved when:
* You have achieved financial stability.
* You have streams of passive income which cover your BASIC monthly expenses.
3. Financial Freedom. – This level allows you to stop working and maintain your current lifestyle based on passive income alone. At this point, you no longer need any active income. If you continue to work, it is probably because you enjoy your work so much that you are working for the sake of your personal fulfillment, not money. It is achieved when:
* You have achieved financial security.
* Your passive incomes are enough to cover your current lifestyle or even more.»

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