Four Financial Levels

Millionaire Secrets

First things first, to be a millionaire, you need to know how much you want to earn every day, how much money you make every month and every year. You must know exactly where you want to be financially. In other words, you must identify the specific financial levels that can be achievable and attainable.

Level 1 : Financial Stability
Well, this is the most basic level of financial, most people you meet everyday will be categorized in this level. So what are the characteristics of Financial Stability? Ok, you will achieve Financial Stability when you have accumulated enough liquid assets to cover your current expenses for a minimum of six months. Besides that, you will need to have life and hospitalization insurance to protect you and your family, or you won’t be able to maintain your current lifestyle.

If you have achieve this first level, you will have the peace of mind that should any unexpected challenges befall you (business failure, pay cut, death or disabled), you and your family lifestyle will not be compromised. Once you’ve achieve this basic financial level, it will also ensure that you have sufficient time to venture for new streams of income. In the mean time, once you reached this level, you will have financial stability to quit your job and to start your very own business, should you need to. After you’ve achieve this level, here comes the next level.

Level 2 : Financial Security
You will achieve Financial Security once you generate enough passive or residual income to cover all your basic expenses. Remember, the cash flow you generated must be passive or residual income, not from your salary. And all the cash flow generated here is enough to cover only basic expenses, not your lifestyle expenses. When you attain this, you are said to be in Financial Security.

In this level, you can quit your job and without working, you can sustain a very simple and basic lifestyle. In addition, if you continue to work, all your active income from your salary can be used to channeled your investment. Therefore will further increase your assets and increase your income streams. Yeah, it is not enough for you and me, what we want here is to make big money, you know, humans are greedy. Then you must aim for.

Level 3 : Financial Freedom
Yes, sounds familiar to you right? We’ve heard people often telling us that they want to achieve Financial Freedom, they want their life to be free financially. So what exactly is Financial Freedom? Ok, Financial Freedom is when you through your investment of time, money and ideas, accumulated a critical amount of positive cash flow, which is enough to maintain your current lifestyle. Yes, Financial Freedom is only enough to sustain your current lifestyle, and not your desired lifestyle.

When you’ve reach this level, you can choose to stop working and still, maintain your current standard of living, for sure. But most people when they’ve successfully achieve this level, they will still continue with their business or work. It is not that they need to, but they choose to, because they love their work love their business so much. Obviously, the more expenses you have now, the more luxurious your lifestyle will be, and the longer for you to achieve Financial Freedom. If you keep on invest your money, keep on making deals in your businesses, finally, you will come to this level.

Final Level : Financial Abundance
So, this is the final financial level you can achieve. It is pretty much like other financial levels, just that, through the investment of your time, money and ideas, the money accumulated from passive income is able to sustain your desired lifestyle. The desired lifestyle expenses are the expenses that will take you to live the life of your dreams. Well, this is totally depends on what kind of desired lifestyle you wish to live. For example, if you dream of living in a 20,000 square-feet bungalow with a swimming pool, drive a BMW 5 Series, then you could be looking at a monthly lifestyle that will cost you around $50,000. And the more luxurious your desired lifestyle, the more longer you need time to achieve Financial Abundance.

And again, once you reach this level, you can stop your all your work anytime you wish. But then, most people choose to continue with their work. They love their work so much, for them, working is fun, and money is a game. And they will even donate they active income for charity causes and keep compounding their wealth. Great, now you are clear with all the financial levels that you can achieve.

Ask yourself, which financial level are you now, and which level you want to achieve. With the right strategies and massive action, I’m sure everyone can achieve Financial Abundance.

From: the Millionaire secrets