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The Four Stages of Financial Independence

The Four Stages of Financial Independence

If you ask the average person if they want to be financially independent, they would say “Yes”. Unfortunately, few people understand what true financial independence is.

It is more than just moving out of your parent’s place, being able to pay your own bills or not being worried if you will be able to pay your own bills. This is what most people think of. This is actually financial stability.

Financial stability is being in a career or position that allows you to make a stable income that allows you to pay your own bills and take a vacation when you finally get time off from work.

True financial independence is when your income is not tied to your ability to work. This means, you can make money while you are sleeping, cooking dinner, traveling the world or whatever you decide to pursue in your free time. You are also freed from the fear of losing your job or your ability to work.

One of the best ways to achieve true financial independence is with income producing investments such as multifamily real estate. If you want to go beyond financial stability and achieve financial independence here are the four stages you must pass through to get there.

Decision Commitment

Financial independence does not happen by accident. It has to be an intentional goal that you set out to achieve. Once you decide you want to be financial independent you have to decide how to achieve this goal.

The path to financial independence makes you more aware of your personal financial health. Because the income that makes you financially independent will be from investments you ha