The Five Degrees of Financial Independence

30.06.2016 • Gold and Natural Resources

From Investor Passport (Argentina)-

I have received many questions about the issue of financial independence that were addressed in recent days. Not about the dollar yesterday boarded. So taking account the emails sent by interested readers, we move on to the issue of independence.

Today I share with you a very interesting variation to measure a person’s degree of financial independence. Because until now we are taking this as an absolute term. Either I reach it or not.

But the great Tony Robbins has a different way of looking at this matter. A more “motivating”, true to his style. He thinks that there are degrees of financial independence. These states explains in his book called “Money, master the game”, which already cited in other opportunities in Investor Passport.

According to Robbins, and five degrees of financial independence. These degrees are:

  1. Financial security
  2. Financial Vitality
  3. Financial Independence
  4. Financial Freedom
  5. Absolute Financial Freedom

How is each degree different from the other? I came up with a brief explanation.

Financial Security: Taking into account rent or mortgage expenses, the expenses of maintaining a house, eating expenses, transportation costs and insurance costs and health coverage. Cover all these costs for life, and it will give you security. Financial security that many people only dream. As this involves leaving out many other expenses, the total amount of expenditure is much smaller and therefore much more attainable.

Financial Vitality: A former state expenses you add the cost of buying clothes, going out and entertainment and other little luxuries you want to give. It is a greater degree of independence, this brings higher expenses, so that’s why Tony calls it financial vitality…

-If you want to read more, visit igdigital.com (paywall) (Spanish)-

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