There are five levels of wealth that can let you know where you stand in your financial journey and how comfortable you really are when it comes to your finances.
Join us for today’s episode of The Money Guy Show to find out where you are in this race of building wealth. We understand that it takes getting to a certain level of wealth when you can actually start breathing a little easier knowing that you have your army of dollar bills built up and working for you. But what does abundance looks like at the graduation point?
You won’t want to miss this week’s show as we cover the different levels of wealth and indicators of success.
Here is what you’ll learn in today’s episode:
The 5 Levels of Financial Success
- Level 1: Financial Stability and signs you have your basics covered
- The traps to avoid when building financial stability
- Why you need to know your monthly burn rate
- The indicators of success when you’ve reached level 1, Financial Stability
- Level 2: Financial Strategy and signs your Army of Dollar of Bills have a plan
- The average amount of money Americans have saved for emergencies and financial goals
- The traps to avoid when implementing a financial strategy like not saving in the right place or trying to time the market, or allowing lifestyle creep to outpace your savings goals
- Indicators you have level 2, Financial Strategy covered
- Why you need to be tracking your annual net worth
- Level 3: Financial Security and no longer sweating the small stuff
- Why this stage just feels easier
- The traps to avoid that can undermine your financial security like assuming income will always be there
- Indicators you have successfully mastered level 3, Financial Security like indulging on small, unnecessary expenses, enjoying a latte, buying a luxury car and other “toys” like a boat
- Level 4: Financial Freedom and enjoying financial independence
- What Financial Freedom looks like: doing what you want, when you want, how you want
- Traps to avoid at this level of financial success like not knowing your why, not making sure you know how much you need to retire comfortably and not knowing what you’re retiring to
- Indicators you have successfully reached level 4, Financial Freedom
- Level 5: Financial Abundance when money doesn’t matter anymore
- Why this is the level of wealth that allows you to be most generous
- Traps to avoid at this highest level of financial success like waiting till now to really enjoy experiences
- Indicators you have reached Financial Abundance
Related Money Guy Shows
- 7 Financial Rip-Offs to Avoid
- Surviving and Thriving in the Transition to Retirement with Fritz Gilbert
Resources and Research Cited in this Episode
- The Four Levels of Wealth (Millie Leung)
- The Three Levels of Wealth (A Wealth of Common Sense)
- 40% of Americans struggle to pay for at least one basic need like food or rent (MarketWatch)
- A growing percentage of Americans have no emergency savings whatsoever (Bankrate)
- Here’s how many working Americans aren’t saving any money for retirement or emergencies at all (CNBC)
- Don’t Eat Out as Often (188/365) (The Simple Dollar)
- A Third Of Americans Dine Out Daily At Fast-Food Restaurants: A Nutritionist Speaks Out (Forbes)
- Employee Engagement on the Rise in the U.S. (Gallup)
Enjoy the Show?
- Make sure you subscribe so you get updates, announcements, and exclusive post-show deliverables!
- Leave us a review on iTunes
- Send us your questions or share your story!
- You can also use #AskTheMoneyGuy on social media!
- Get your FREE copy of The 30-Minute(ish) Financial Plan
Tune In and Go Beyond Common Sense with the Money Guys
This show would not be what it is today without the support of our wonderful listeners. We strive to continue making the show better and your feedback is an important part of that process.
If you have any questions/suggestions/comments/concerns (or just want to say hi!), feel free to reach out to us: [email protected] and [email protected]. You can also join the conversation on The Money Guy Show Facebook page or connect on Twitter @MoneyGuyPodcast.
If you enjoyed this episode, be sure to join our community! You’ll never miss special announcements and offers, plus you’ll get future podcasts and blog posts delivered straight to your inbox so you can get in on the action right away.