Finances and wealth cover up a major part of our lives.
From the moment we become financially dependent on someone to the moment when we slowly become financially independent.
It is important to have a direction and enough information about how you will handle your finances later down the line.
To help you understand on an intricate level, here are the 6 levels of wealth.
Level 1: Dependent
This is the stage where you are financially dependent on someone. You have to be dependent on someone for your expenses until you reach an age where you can earn money. At this level, you are either dependent on your family or a third-party organisation.
Level 2: Solvent
This is the stage where you have just the amount of money to pay your bills. You are focused on getting by the day. The thought of not earning money for a month terrifies you because thoughts about paying bills fill you with dread. He thought of saving money, completely goes out the window.
Level 3: Stable
At this level, you can bear the brunt of unexpected expenses without having to worry about if your account balance is zero or not. You can afford to go on a holiday or two to refresh your mind. The thought of an uncertain future without money slowly begins to fade away.
Level 4: Secure
You are financially secure and strong. You can tend to emergency situations and face them headstrong, instead of just worrying about how to put food on the table. You look forward to your career, and your perspective about life will also radically change. You can also afford a few luxurious items once in a while.
Level 5: Independent
This is the stage where you do not worry about money at all, except for the occasional rounding up on your wealth. At this level, you are more carefree and financially secure. You can go on holidays, and look forward to living life in the best way possible.
Level 6: Abundant
This is the last stage where you are likely to think about how you can pass on your wealth to your children or grandchildren. You think of ways to pass on your legacy to the next generation and retrospect on the impact you’ve made in the world.
