Seven Steps Towards Financial Freedom
Mar's Musings on Seven Steps Towards Financial Freedom
Today, I want to dive into the concept of Financial Freedom, inspired by Grant Sabatier's seven steps towards achieving it. Financial freedom can often feel like an abstract, daunting goal, but breaking it down into manageable steps can help clarify the path forward.
The Seven Steps to Financial Freedom
Clarity: The first step is gaining clarity about your financial situation. Understand your numbers—what's coming in, what's going out, and where you currently stand financially. This foundational knowledge is crucial for moving forward.
Self-Sufficiency: This step is about standing on your own two feet financially. It's the stage where you've moved out of your parents' home and are able to cover your own living expenses without external support.
Breathing Room: At this stage, you're no longer living paycheck to paycheck. You're starting to save, creating a bit of financial cushion that allows for more flexibility and less stress.
Stability: Stability is achieved when you have no more bad debt and have saved an emergency fund, typically three to twelve months' worth of expenses. This provides a safety net for unexpected events.
Flexibility: Flexibility means having enough savings or investments that you can take time off for personal pursuits, whether that's travel, maternity leave, or exploring new hobbies. You have the financial freedom to make life choices without immediate monetary concerns.
Financial Independence: At this stage, your investments generate enough income to cover your living expenses. You no longer need to work for money because your money works for you.
Abundant Wealth: The final stage is abundant wealth, where your investments continue to grow and generate more income than you need. You have the freedom to give generously, invest further, and create a lasting legacy.
Finding Your Path
Not everyone aims to reach the final stage of abundant wealth, and that's perfectly okay. The goal is to understand where you currently stand and identify the next step that makes sense for you. Here are some questions to consider:
Where am I on this financial journey?
What step do I aspire to reach next?
What actions can I take to move forward?
Everyone's journey is unique. Your goals and the pace at which you progress will differ from others.
Use this framework as a guide to help you make informed decisions about your financial future.
Embracing Financial Well-Being
Ultimately, financial freedom is about achieving financial well-being. It's not solely about accumulating wealth but about creating the right life for you—one where financial worries don't hold you back from pursuing your dreams and living authentically.
Feel free to share your thoughts and questions.
Your feedback is invaluable and helps us all learn and grow together. Let's get inspired and take the steps towards your financial freedom!
With love,
Mar
P.S. Marieka & I launched the female investment course to help you on your path towards financial freedom. Check it out here.
Want to have a chat about your financial situation and next steps Book a 30-minute call