7 Stages of Achieving Financial Freedom

Reaching the pinnacle of financial freedom is everyone's goal. If you can be free from finances, it means that you can be free from various burdens that suppress the mind such as debts, dependents, and the desire to buy something that is delayed and you yourself can get money even if it's just lying down or on vacation.

To reach the peak of success in being financially free is not an instant thing in the blink of an eye. Of course you need a stage in each level is to call it 'process'. Well, I will discuss what these stages are. Let's see!

1. Stage 0 ( Dependent )

This stage is a really early stage to do. At this stage you still depend on other people to be a support system for you, especially financially. At this stage, usually you still live with your parents or you are still really dependent on them, and they still give you money for your daily needs. At this stage you do not have any money and income, or your income is so minimal that you cannot be separated from your parents.

At this stage, you must encourage yourself to study hard and gain as much knowledge as possible. So, if you are at the point of completion, you have values ​​or abilities that you can sell to other people, in another sense you have a product or open a business. What's more, you can choose the place of work you want if you already have a mature stock.

2. Stage 1 (Independent)

At this stage you no longer need to depend on other people, and you no longer need to feel burdened by someone to meet your financial needs. Yes, unfortunately, even though your salary is enough to cover everything, your salary is still relatively mediocre enough to meet your basic needs, moreover, you can't set aside any percentage of this salary for saving.

However, one thing that can be a solution for you at this stage is your investment. OK, where to invest? Yes, you can invest your money to buy books related to useful sciences so that you can sharpen your brain so that you become a truly qualified person and can achieve the appropriate target. For that you have to really live very frugally and set aside your salary money so you can buy books to invest in knowledge.

3. Stage 2 ( Stable)

In this stage, you are in a stable position because you are already working, your workplace is comfortable. Then, you already have a decent salary to meet your needs, and even more for you to save. But, on the one hand, you can't forget one thing. Because at this stage you still have dependents, namely debt bills, loans, or maybe other obligations that you must complete. Eits, at this stage you are also in a safe position where you don't need to worry or be afraid anymore if one day you can't pay the installments or something because you're losing your job. Because you have savings that can help you in an emergency like that, before you find a new, better job.

4. Stage 3 (Autonomous)

This was quite a high stage as it was already at the fourth level. This stage is a stage that is sufficient for you. At this stage you no longer have debts, small bills, or other dependents that you need to pay. You even have savings that are multiples of more than your salary. So, when you get out of work, you will definitely be able to survive for months.

5. Stage 4 ( Safe )

At this stage you are already in the green light position because your investment money can already cover the needs of daily life, even with a simple lifestyle. You can't buy luxury goods yet, while on the other hand you have your own business where the work process runs smoothly without your full supervision, and you have a lot of savings even though you live with simple things. So you can choose to retire at an early age without worrying about the future. However, with your savings, you are still unable to live above the line of need, because money will run out over time and your savings can last if it's just a cost to survive.

6. Financial Freedom Stage ( Financial Freedom)

Well, this is the pinnacle of a dream to achieve. If you are already at the peak stage, this is a sign that your passive income is the same as the standard of luxury living. Your mind at this stage no longer needs to work, because you are enough with your passive income which continues to flow to meet the standard of luxury living which could be income from your business or investment.

7. Rich Stage

Only a select few will step on this stage of being rich. This stage is the stage where your business has been really successful until you can no longer describe what kind of success it was, your investments are everywhere, and even you are so rich, you can support your big family without worrying about your money running out. One thing is for sure, you can be famous as one of the richest people in Indonesia or even in the world.