Levels of financial freedom 2022-2023


1. Dependent

This level is not easy, and you may be unhappy about your financial situation.

Your financial dependence on others is likely. You can’t continue in this manner in the long-term.

2. Solvent

Solvency, also known as “survival”, is when your expenses and outgoings are less than your earnings.

This stage is where you are likely to be able to pay your bills, meet your financial obligations, and not depend on anyone or anything to cover your expenses.

3. Stable

When you are able and able meet your financial obligations, have paid off some of your debts, and can keep your expenses down, you can begin saving. First, for your emergency funds and then for your long-term growth.

However, you are probably not yet debt-free. That’s okay. You might still be in significant debt, such as student loan debt from HELP or a mortgage. But you are working to reduce it.

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