It’s September! If you’ve been listening to the show for the past few months, then you know that I’m on what I’ve dubbed my September Sabbatical, in which I’m traveling the world and taking a break from podcast production.
In light of that, we’re digging through the archives and airing some of my favorite interviews on the show, in between airing interviews I’ve done on other podcasts.
We are really digging into the archives with today’s episode. This originally aired back in 2016!
Besides being another fun and fascinating interview, this is one of our most popular episodes. Which isn’t surprising, given the topic we’re exploring. 🙂
Financial independence means many things to many different people, which might be why we find it challenging to settle on a definition that everyone can agree on.
Regardless of what your personal definition is, Joshua Sheats, a financial planner and host of the well-known Radical Personal Finance podcast, says that financial independence can be separated into seven stages.
- Stage 0: Total Financial Dependence – Where we all begin!
- Stage 1: Financial Solvency – This is when you’re able to live on your own and pay your bills on time. Hooray!
- Stage 2: Financial Stability – A step above the last stage, as this includes having some savings stashed away.
- Stage 3: Debt Freedom – You’re not beholden to any creditors! If you’re wondering about whether a mortgage counts, it’s up to you to decide.
- Stage 4: Financial Security – If an emergency were to happen, you have enough investment income to survive.
- Stage 5: Financial Independence – Your investment income is enough to cover your current expenses.
- Stage 6: Financial Freedom – You have enough surplus investment income to afford amazingly awesome things!!
- Stage 7: Financial Abundance – This is financial freedom on steroids. You can’t spend your money fast enough. Your wealth will likely outlive you, which means you have the ability to leave behind a legacy.
There is so much more to each stage and how to enjoy life no matter what stage you’re at, so make sure to tune into the episode if any of these resonate with you. Let us know which stage you’re at in the comments, too!
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