What is financial independence for you?Sep 14, 2019
The terms ‘financial freedom’ and ‘financial independence’ are used quiet a lot, but they don’t really have a set definition.
The experience is different for everyone, of course, and there’s no one size fits all.
But here’s how we think about financial independence at Next Level Wealth.
Ideally, we like to think of personal wealth in three ‘pots’:
1 – Liquid funds (<12 months)
These liquid funds can be actively managed, and while not a significant percentage of your overall wealth, should be large enough to cover your day-to-day bills and living expenses for the coming year.
2 – Living, lifestyle, and leisure (2 to 5 years)
A second pot of money which can also be actively managed to cover upcoming living expenses, holidays and travel, car upgrades, home renovations, school fees, and whatever else is on your 2 to 5 year horizon.
3 – Longer term and legacy (to retirement and beyond)
These are your safer, long-term investments that you ideally never have to sell until your retirement.
If you manage your first two pots well then you may never need to touch these assets, and they can ultimately form a legacy for your kids, or for other family members, or for a charity of your choosing.
I discussed these ideas a little further in the short video here
Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:
- Boom or Bust in 2021 – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here
- Subscribe to our Top 100 Podcast for Investors
- Join our Implementation Program
We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.
- Work with me privately
If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!