6 Stages of Financial Condition

1. Financial Broke

Financial Broke is basicly when you’re Monthly Income is just in a state of satisfying to cover your monthly expenses, or to put it in a more bad scale is actually when your monthly income cannot cover your monthly expenses for that it is higher.

 2. Financial Foundation

Financial Foundation is basically when your Monthly income manage to cover the monthly expenses, or to put it in a good scale is actually when your monthly income is higher than your monthly expenses.

 3. Financial Security

Financial Security is basically when you have a six month savings of your Monthly Expenses Figure

For example :

Monthly Expenses = $ 2,000

$2,000 x 6 = $ 12,000

So, you must have $12,000 of savings in your account before you can start with any other investment

 4. Financial Flexibility

Financial Flexibility is basically when you have that six months savings of your monthly expenses figure WITH an extra of $300 – $ 500 of monthly income

For example :-

Monthly Expenses = $ 2,000

6 Months savings = $ 12,000

Monthly Income = $ 2,500

>> There is an extra of $500

 5. Financial Independence

Financial Independence is basically in a state where you have a passive income flowing positively that can actually covers your monthly expenses without even having you to go to work

For example :

Monthly Expenses = $2,000

6 Months Savings = $12,000

Monthly Income = $ 2,5000

Passive Income = $ 2,100

>> The passive income can actually covers the monthly expenses without having to rely on the Monthly Income.

 6. Financial Freedom

Financial Freedom is basically when you don’t really need to worry about money spending and this a state where you can buy YOUR DREAM ]

For a really LUXURIOUS LIFESTYLE,

The targeted PASSIVE INCOME = $50,000 !!!