6 Levels Of Wealth
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So recently the idea of finance really hit me hard as I had to make a tough decision of giving up on my dream due to a crazy amount of starting finance. I was given an opportunity to fly as a commercial pilot but I was required to fork out around USD$147,000 for flying school, coupled with the fact that I will not be receiving any salary for the next 2 years due to training. I know this is something I really want, but dreams sometimes don't really sit well with reality. Being practical, I have to give up on that flying dream. I thought to myself, hey if 1 day I get rich, like really rich to the point not only can I afford to not draw an income, perhaps I can give it a go again (assuming it is near future as I won't be recruited if I am too old).
And, this got me thinking, how do I fair as to compared to peers elsewhere in the world? A report from CNBC states that in America, the average household has an average saving of $8,863. This got me thinking, if we do not do a self assessment and act now, we might lose out on good opportunities and thus, landing ourselves in a vicious cycle. I wanted to learn more about this and stumbled upon this idea of "6 Levels Of Wealth" by Principle Personal Finance. I think, it is a pretty good at a glance self assessment.
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Level 1 - Dependent
In summary, the name of the stage is quite self explanatory. Basically, you are not financially capable of supporting yourself. You rely on someone, be it yourself or the state to tide you through your expenses. No shame about being in this category as literally everyone starts here, like literally. When anyone is born, they are dependent on their parents for their livelihood. Whoever that person is, be it World Leaders or the affluent from the Forbes List, they were all once in this category
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Level 2 - Solvent
In a nutshell, you are living paycheck to paycheck. Though you are able to provide for yourself, you literally can only provide for yourself with the bare minimal. That means no lapse in salary, no holidays, no occasional "Splurges". Your expenses is pretty much equals to your income. This is pretty dangerous in my opinion. I have witnessed many cases of adults having to work despite being very sick because they could not afford to have a no - pay sick leave.
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Level 3 - Stable
If you are here, congrats! You probably have a couple of months worth of salary saved up, good job! Life seems fine, and you can afford a budget holiday or two. Festive season will not be a dread as you can afford a small celebrations without changing your way of life. You can even consider taking a short break from work or take some time to look for another job that you like. As mentioned by the name of the stage, your life is pretty stable.
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Level 4 - Secure
You are really fine and confident, with emergency savings able to tide you through a year or so even if you have to. As your financial positioning is good, I guess you are able to take on more risk in terms of career, or probably even starting up a business. Although things are looking good and you do not appear to share the same rental woes as others at the end of the month, it is unlikely to see you at the Golf Course 5 days a week.
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Level 5 - Independent
You are rich, and money isn't really a problem for you right now. If you are still working, you are literally working because you want to work, and not working because you have to work. These people are those whereby they can literally afford to "fire" their bosses when they feel like, because they do not need the job anyway. Speaking of "fire", there is this acronym called FIRE in my country, meaning Financial Independence Retire Early. Perhaps I will even touch on about that theory if this posts start to get a bit of traction!
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Level 6 - Abundant
You literally have enough money not only for you and your family, but also your grandchildren as well. You can easily erect scholarships under your name, set up charity organisations and so on. Life is great as you get to enjoy the best the world can give you. As for me, a personal mantra is that if I ever were to reach this stage, I would really want to do my best to return to the society
Now looking through all these, I find the idea of Finance and Personal Wealth to be pretty interesting. Being someone that literally just graduated, I am unfortunately currently at Level 1 - Dependent. As I search for a job, hopefully my first few paychecks will get me propelled to Level 2 - Solvent.
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If you are keen to share, do feel free to share about your experiences as well. Which Level you are right now, how did you manage to make it there, any words of wisdom/advise to share with the community, anything! All comments will be greatly appreciated!
Good post and a solid target for people to aim for.
I'm level 4 and trying to get to level 5.
It takes time but extra revenue and passive income are the keys to getting there.
Hi @niallon11 , thank you for your kind words and I am so happy that you found the post useful. Yes, after what happened to me, I realised that many people might have overestimated their financial health. It is a bit concerning in my opinion.
Level 4 is really awesome! Goodness! I have been reading up and I realised that with Level 4, you are easily better than at least half the population of the world (cause there is quite a fair bit of income disparity right now). I do agree with you. I once read a book and they said that millionaires tend to have multiple streams of income. In a way just like diversifying your investments, even streams of income also should be diversified so that even if something unfortunate happens in your normal job, your financial health will not be crippled by it!
Also @niallon11 , do pardon me. This is my first time writing for @leofinance related stuff. I understand that we should work on investment/crypto/finance related topics. By chance do you have any advise what I can do so that my post have more exposure and hopefully more upvotes? Very new in this community here, thank you for your advise
It was a good post that was interesting and well laid out. That is why it caught my attention.
I'm lucky enough to have found hive four yearsa go and through it's eco-system of games and apps have managed to build up a good portfolio of crypto and passive revenue streams.
Money makes money so the first part of the plan for me always has to be building a stack to work with. There is no shortcut to this part as it will take time and effort to earn the first layer of your crypto holdings.
To be fair, I think that you are already doing a lot of the right things. Leofinacne is the same as any other social media in that you need to build your brand to be successful.
This means.
This is the toughest part as it takes the longest time to get established and to gain some earnings. The longer that you can do this then the more that it will speed up.
I've seen that you take part in the splinterlands challenges which is a good way to earn upvotes and there are other opportunities just like that. cinetv.io host contests on their trib if you have an interest in movies or sportstalk.io have the same for sports content.
When you have build more stake in the platform then you can more onto level 2.
You will have learnt who is a good users and knows what they are doing. You will have seen how they are operating in the crypto world. You will have identified investment opportunities and know how to get involved with them.
Start making those earning work in the background through staking, defi, investing in good projects and increase your return.
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Wow, thank you so much @niallon11 for all these wisdom. I was looking for advise, and you have been super generous with them!
Yes, I was trying my best to create a virtuous cycle. To be fair, as I am a student I started these with just USD$10. Reaching what I have today, I am actually very proud of myself. Nevertheless, I am humbled by great mentors like you in the community, which is why I am so attached to this place.
If you don't mind, may I probe a bit more? I saw your post and you literally have hundreds of upvotes. How do you manage to amass such a crowd? I have tried commenting on other posts but was often not reciprocated. Like I have seen this advise a couple of times but I am unsure how that will materialise into more upvotes.
I am so thankful to have you here, and it is such a pleasure to be able to learn from you. I have just followed you, and would definitely love to continue to learn from you if you are fine with it!
A lot of them come form voting trails on the system. Some people with hive power have automated their votes to copy what other users do.
i'm lucky enough to have built up a big following over the past five years that includes a lot of the larger accounts and these are the people that others follow.
If you can get a vote form the biggest users they usually come with other votes attached.
Happy to help any new users to get involved but it will take time and effort. Lots of comment and even join a few contest or challenges to get noticed.
Posted Using LeoFinance Beta
Thank you so much! Well though I have been here for probably a year, most of the activities are quite repetitive and rarely did I do something different, perhaps that is why it has been slightly stagnant.
If that is the case, by chance any idea how or what I may do to get attention/votes from the bigger users?
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Thank you.
ah my apologies @hivewatchers . You know for a moment I still thought this was a phishing post, until I went to your account and realised you guys are the champions against phishing post! haha. Made some edits!