Embarking on your money journey is like traveling through different stages. Let’s break it down in simple terms:

Stage 1: Covering the Basics

This is where you ensure you have what you need to get by. For some, it might mean struggling to find enough money for everyday needs like food, rent, or bills. Others might be dealing with overwhelming debt, making it hard to keep up with payments. It’s about addressing immediate money problems and finding stability in your financial situation.

Stage 2: Feeling Secure

Once the basics are covered, you move into a more stable phase. Here, you start to feel more secure about your money. You might have a steady income from a job or other sources, allowing you to manage your expenses more comfortably. You might also be making progress in paying off debts, reducing the burden they place on your finances. Building up some savings for emergencies becomes a big deal, giving you peace of mind knowing you have a financial safety net to fall back on when needed.

Stage 3: Growing Your Wealth

Now, it’s time to think about making your money work for you. You’re in a phase where you believe you can grow your wealth and improve your financial situation. This could involve earning more money through advancements in your career, starting a side hustle, or investing in opportunities that offer potential for growth. You might also be focused on paying off debts faster and putting more money aside regularly for savings and investments. The goal is to build a solid foundation for your financial future and create opportunities for long-term prosperity.

Stage 4: Financial Freedom

As you keep moving forward, you aim for financial freedom. This means having enough money coming in from different sources, like investments, passive income streams, or business ventures, so you can live the life you want without stressing about money all the time. Financial freedom allows you to pursue your passions, take risks, and enjoy greater flexibility and control over your time and resources. It’s about achieving a balance between earning, saving, and spending that aligns with your values and goals, giving you the freedom to live life on your own terms.

Stage 5: Leaving a Legacy

The last stage is about leaving behind something meaningful. You’re not just focused on your own wealth anymore; you want to create a legacy for future generations. This could involve giving back to your community, supporting causes you care about, or setting up funds or trusts to provide for your family and loved ones after you’re gone. It’s about making a positive impact on the world and leaving behind a lasting legacy that reflects your values and beliefs.

Final Thoughts

I use these stages to help my clients understand exactly where they are for different categories which them helps them know what they are working towards and therefore what their goals need to be. Understanding these stages helps you see where you are on your money journey and what steps to take next. Whether you’re just starting or well on your way, know that there’s support available to help you reach your financial goals. Together, let’s make your money journey a successful one!