#20 - The 8 Stages of Financial Independence
Financial Independence – it’s a real buzz phrase these days. But what I don’t like about it is that Financial Independence (or FI), often feels like a dichotomy: either you are financially independent or you aren’t.
I’m never a big fan of the yes / no, black / white, in / out, successful / unsuccessful way of presenting a concept. It makes it hard to see your own progress towards a goal as you’re either “there” or not.
I LOVE a concept being broken break down into smaller steps however! Now that makes it easier to see your own evolvement as you move from one phase to the next, it allows you to set clearer goals AND it makes the whole journey much more exciting! Instead of feeling you’ve still got years (or decades) to go on your way to becoming financially independent, if there are some in-between goals that you can work towards in the mean time, the process becomes ever so much more inviting!
Now, here’s the good news: did you that if you imagine Financial Independence as a continuum, or a scale with gradations, that there are 8 different stages on that scale? (Spoiler alert: Financial Independence isn’t actually the last stage! – There are two more stages you can get to after reaching FI.)
Pretty cool, right?
With those 8 stages, it becomes much more manageable to start your journey to FI, as there’ll be lots of smaller steps to aim for on your way!
Episode 20 of the Financial Harmoney Podcast is all about the 8 stages of Financial Independence. I describe each one in detail and I’ve also made a handy reference sheet that you can download below if you want to have a super quick overview of the various stages.
Go check out the episode and find out which stage you’re currently at AND which stage you’d like to get to within the next 10 years.