Stages Of Wealth

At what time in your life do you think wealth has been achieved? How much do you think is enough to consider yourself wealthy? Remember that wealth is relative, the amount that might make you feel wealthy might just be someone else’s monthly spending budget on expenses. So wealth being relative has to be based on some certain stages.

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Let’s start with the stability stage, imagine you are at a point in your life where you can afford to get all your bills paid in time and still have extra to spend on your guilty pleasures. You have emergency funds set aside, this will be able to kay for at least 3 months or more. When you have gotten to this stage in your life, congratulations you are on the stability stage of wealth. You have to move to the next stage which is the strategy stage.

Now you are stable, what next? As humans we always want more, more money, more stability right? This is where strategy on how to invest comes in, you start looking for stocks, real estate, bonds or whatever means that can help you increase and expand your sources. If you have achieved this stage in wealth, then you are half way there to wealth. At least for now you are financial secured, your bills are sorted, your investments are yielding more money, you don’t have any debts, no financial weight on your shoulder that you can’t handle. This stage is called the security stage because you are not financially secured.

The next stage is called the freedom stage, this is the stage where you can do whatever you want to do, like create a certain lifestyle for yourself, buy yourself that car, buy yourself that Rolex watch, go on that vacation you have always wanted to go for a long time. Your incomes pay for all these expenses without stress now, why not live the life and be free.

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