The Four Levels of Wealth
FINANCIAL FREEDOM - such a big word. Desired by all, understood by few. So do you have your own definition of what financial freedom is, and what it means to you? Clarity is power, and the clearer our definition of financial freedom, the more likely it can be achieved. While I was reading Adam Khoo's Secrets of Self-Made Millionaires , I came across a well-defined explanation of what financial freedom is, along with the other different 3 levels of wealth. Level 1: Financial Stability This is achieved when one has enough liquid assets to cover his/her expenses for at least 6 months, and he/she has sufficient life and hospitalisation insurance to protect against permanent disability, inability to work, or sudden death.