7 Levels Of Wealth: What Stage Are You At In 2024 According To Grant Sabatier?
7 Levels Of Wealth: What Stage Are You At In 2024 According To Grant Sabatier?
AJ Fabino Thu, September 26, 2024 Benzinga
In a world where financial anxieties loom, many Americans wonder just how financially secure they are.
For those wondering, Grant Sabatier, a voice in the FIRE (Financial Independence, Retire Early) movement, offers a perspective with his seven-level framework of wealth. The road map, written in his book "Financial Freedom," is a gauge that might resonate with those seeking to understand their financial journey.
Sabatier’s first level, “Clarity,” is about taking stock. For some, it might mean confronting the reality of living paycheck to paycheck, which plagues 78% of working Americans, according to a 2023 Payroll.org survey cited by Forbes.
Sabatier’s system breaks down as follows, according to Acorns:
2. Self-sufficiency: Covering basic expenses without external support. While it may still mean living paycheck to paycheck, it’s an important step.
3. Breathing Room: The end of the paycheck-to-paycheck cycle. This level allows for discretionary spending and marks the beginning of financial comfort. "Just because you make a lot of money doesn't mean you're saving that money," Sabatier said. "Most people in [the U.S.] live through debt."
4. Stability: A solid financial foundation. “At this level, you’re not worried if you lose your job or have to move to a different city,” Sabatier explained. Stability typically involves saving six months of living expenses.
5. Flexibility: The ability to take calculated risks. With at least two years of living expenses saved, individuals can consider major life changes without financial fear. "You could take a year off from your job if you wanted to," he said.
TO READ MORE: https://www.yahoo.com/finance/news/7-levels-wealth-stage-2024-171546067.html