FIVE LEVELS OF FINANCIAL FREEDOM
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Originally Posted On: https://followthemoney.com/fivelevels/
Are you ready to experience true financial freedom?
Follow our simple plan and experience true financial (and spiritual) liberty!
Hello! My name is Jerry Robinson and I am the founder of FollowtheMoney.com. I am very glad that you found this page. For the last several years, I have been helping people just like you achieve financial freedom and security through something that I call the Five Levels of Financial Freedom.
No matter where you are financially, this online tutorial will provide you with the knowledge you need to begin creating a solid financial gameplan.
Here at FollowtheMoney.com, you will find lots of free articles, audio clips, videos, and other resources which will help you as you begin your journey towards financial, personal, and even spiritual, liberty.
Below you will find the Five Levels of Financial Freedom. While you may be tempted to skip a level in order to get to the “fun” parts, I would urge you avoid that temptation. From my experience, I can tell you that the reason most people fail to achieve financial freedom and security in their lives is because they give in to the temptation to walk before they can crawl. You and your family deserve a financial plan that will last a lifetime. Don’t accept shortcuts when it comes to your family’s financial future.
As you read through each level, you will find recommendations and strategies that you can put into practice immediately.
If you have a philosophical disagreement with any of the ideas that I present, you can obviously ignore my strategies and move on the next part. For example, when you get into Level Two, you will see my recommendations on life insurance. You may believe that you do not need life insurance. Of course, that is fine. However, let it be your decision to not seek out life insurance.
By the time you get to the end of Level One, you will be financially ahead of most of your friends and family. And by the time you complete Level Two and Three, you will be more financially prepared than almost 99% of America.
With all that said, let’s take a brief look at each of the Five Levels before we get started, shall we?
Here’s a graphic explaining it below:
Welcome to Level One!
And a big congratulations on your decision to achieve financial freedom!
In Level One, we are going to:
- Create a Charitable Giving Plan – Similar to a financial plan, only estimating a goal of how much money you want to give away over your lifetime
- Create a “Go” Bag – A 72-hour emergency kit containing all of life’s essentials for at least three full days, in case of a home fire, wicked weather, or other disaster
- Create 3 Months of Food and Water Supplies – You need enough food and water to for your household to last three months
- Begin a Systematic Savings Plan – Your ultimate goal is to save at least 15% of your income each month. But begin where you can
- Build Two Months of Savings – Based upon your current gross monthly income
Now don’t let the list above intimidate you. Remember, we are going to do this together and I will be helping you every step of the way. In fact, every step that you are going to take on this journey to financial freedom, I have already taken. (Can your financial advisor say that about the advice he is giving you?)
As the old saying goes, “the journey of a thousand miles begins with one step.”
So let’s get started with our first step. We are going to begin Level One by creating a Charitable Giving Plan.
Welcome to Level Two!
If you completed all of the steps of Level One, you are now in better financial shape than 90% of Americans! Congratulations!
In Level Two, we are going to:
- Examine and Improve Your Asset Protection: Auto, Home, and Liability Insurance
- Examine and Improve Your Income Protection: Disability, Health, and Long-Term Care Insurance
- Examine and Improve Your Life Protection: Life Insurance, Wills, and Trusts
Now if you are like most Americans, you are tempted to skip this Level and get to the “good stuff.” That would be a terrible mistake. As I will explain in the pages ahead, this is the most important Level within the Five Levels of Financial Freedom.
So let’s keep moving… We are going to begin Level Two with an in-depth look at your current asset protection.
Welcome to Level Three!
If you completed all of the steps of Level Two, you now have all the protection you desire in place. In other words, you have constructed the “moat” for your financial “castle”. Congratulations! You are now ready to embark on Level Three!
In Level Three, we are going to:
- Build a Total of Six Months Food and Water Supply
- Build a Total of Six Months Gross Income Saved
- Diversify Your Six Months Liquid Savings
So you might be asking, “When are we going to get to the good stuff already, like investing in stocks, real estate, and other sexy topics?” But be patient, Level Three is a vital step in your plan. Remember, those who have adequate savings are actually better investors than those who have little or no savings. Why is that? Well, if you have savings, you are less likely to desire to hit a “home run” in the stock market, or to place all your money in a risky real estate venture. Furthermore, you will be a better investor because you will have a ready cash reserve to scoop up any great investing deals that come your way.
So let’s keep moving… We are going to begin Level Three with a step-by-step plan of building six months food and water supply.
Welcome to Level Four!
If you completed all of the steps of Level Three, you now have a solid reserve of liquid savings, as well as a store of food and water you can use to feed your family and to help others in times of need. Congratulations! You are now ready to embark on Level Four!
In Level Four, we are going to:
1) Invest Broadly Across Various Asset Classes
2) Remember P.A.C.E. for Inflation Protection
3) Avoid Overweighting in One Area
4) Trade Cash for Cash Flow When Possible
5) Begin Creating Multiple Streams of Income
Level Four is all about building and diversifying your investments. Recall from Level One that you began a systematic savings plan, ideally saving at least 15% of your gross income. By now you have six months of your monthly income saved and diversified in liquid assets that will help protect your savings from inflation (from Level Three). Now that you have your savings reserve, you do not stop saving 15% of your income. But rather than keeping it in liquid savings, you will now divert this 15% into investments. If you ever drop below your six months of liquid savings, you will immediately stop adding new money to your investments, replenish the six months of savings, and then resume adding to your investment pool.
So, if you are ready to get to the “fun part”… We are going to begin Level Four with a basic concept that all investors should implement, especially in today’s age of market turmoil: Invest Broadly Across Various Asset Classes.
Welcome to Level Five!
In Level Five, your goals are to advance into:
- Opening or Expanding Your Own Business
- Stock/Option Trading Strategies
- Internet/Affiliate Marketing
- Venture Capital
- Real Estate Strategies
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