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The 7 Levels of Financial Freedom

The 7 Levels of Financial Freedom

Matt Viera
February 17, 2023

Image by Nikolay F.

Good morning and Happy Friday!

Welcome to another edition of The Matt Viera Newsletter.

I hope you had a productive week and are ready for this 3-day weekend!

Thank you for your continued support.

Quick note: I will not publishing The Matt Viera Newsletter on Friday, February 24.

I'm happy to share that I will be tucked away in a small cabin, in the woods, in Pennsylvania.

The Newsletter will return to your inbox on March 3.

I recently read an article on CNBC about the 7 Levels of Financial Freedom.

The 7 Levels were created by self-made millionaire Grant Sabatier.

Grant Sabatier is the author of the international bestseller: Financial Freedom: A Proven Path to All the Money You Will Ever Need, a book I plan to read soon.

What interests me about Sabatier is that he went from $2.26 in his bank account to a net worth of over $1.25 million in 5 years!

What would you do if you could achieve this kind of financial growth in 5 years?

Me: I'd spend some time traveling away from NYC.

Then I'd help other big city professionals achieve their financial goals.

So, what are the 7 Levels of Financial Freedom?

Read on:

Level 1: Clarity

You figure out where you are financially and where you want to go.

Determine how much money you have, how much you owe, and your goals.

"You can't get to where you want to go without knowing where you're starting from."

Level 2: Self-sufficiency

You've moved out of your parents' house and currently earn enough income to cover your living expenses.

You may be living paycheck-to-paycheck or taking loans to make ends meet.

Level 3: Breathing Room

After covering your living expenses, you have money left over to start building an emergency fund and/or invest for retirement.

Level 4: Stability

You paid down high-interest credit card debt.

You saved six months of living expenses in an emergency fund.

"At this level, you're not worried if you lose your job or if you have to move to a different city."

Level 5: Flexibility

You have at least 2 years' worth of living expenses saved.

It could be the sum total of your savings and investment accounts as long as you can access that money if you need it.

Level 6: Financial Independence

You can live off the income generated by your investments:

Your investment portfolio
Rental Properties
Both

To get here, you must invest a high percentage of your income.

"Pursuing this lifestyle requires a change in thinking."

Level 7: Abundant Wealth

"Having more money than you'll ever need."

"You don't have to worry about money, and it's not essential to your day-to-day existence."

So what Level are you on?

What would it take to progress from the Level you're currently on to the next?

I'm at Level 4.

To get to Level 5 (and what I thought about this past Wednesday), I'd have to start saving/investing considerably more than I currently am.

I'm currently saving 15% of my pre-tax pay (which I recently upped to 20%).

I want to find a way to save at least 50% of my take-home pay. I am wrestling with a private student loan and a car payment - if I can accelerate paying these off, I'm off to the races.

The truth is, for all of us to achieve our financial goals, a serious change in mindset and a deep commitment are required.

Source: 7 Levels of Financial Freedom

Thanks for reading!

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