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A common misconception I see is that a high income, fancy cars, or nice houses means that someone is wealthy. I strongly believe there is a big difference between the superficial version of wealth – and true wealth.
I believe that wealth is the freedom to focus on what really matters and do what you want, when you want, how you want. Here are the 5 different stages of true wealth:
1. Stability
Your regular living expenses are covered and you’re able to set money aside for the future.
2. Strategy
You think about how to increase your cashflow and how you can make your money work for you.
3. Security
You don’t feel stress or worry when it comes to money. Your assets cover your expenses.
4. Freedom
you have enough positive cashflow and passive income to cover your lifestyle.
5. Abundance
You have enough extra cash to pay for both convenience & extravagance.