What are the financial grades? Most people don't understand their financial situation. In fact, only by clearly understanding their financial situation can they understand the gap between themselves and the rich, and know that they still need to work hard. The following financial grades are divided into 10 grades. Come and see which grade you belong to.
The first level is financial dependence. This level describes that your debt expenditure and living expenses are higher than your income. That is to say, in some form, you must rely on some people and things to achieve balance of income and expenditure. Even if you are a child, you have no idea about your own expenditure, but in fact, you need your parents to pay for your clothes, food on the plate, and exercise books. For everyone, financial dependence is an inevitable beginning of life, but when will it end, He is totally dependent on a person, and the ability cultivated the day after tomorrow is also the ability to make money.
The second level is balance of payments. At this level, you have the ability to pay your living expenses alone, and you can balance your income and expenditure without the help of other people. But only when you just reach the balance, you still cannot pay off all debts, such as credit cards, Huabei, student loans, or housing and car loans. In fact, you still cannot bear any risks. This is the state of most young people who have just worked after graduation.
The third level is controllable risk. This level refers to your income and expenditure balance. A personal emergency fund can be set up to deal with emergencies that may occur in daily life, such as minor diseases, sudden unemployment, etc. At this level, you begin to take the first step towards financial freedom. For example, some people buy necessary insurance for the surplus after making a balance of payments. This is a more responsible financial choice than buying things indiscriminately. Only by minimizing the harm that risks may bring, can you go further
The fourth level is freedom of debt. At this level, you are completely out of debt. For example, loans or credit cards, you may keep various interest rate debts when the financial stability. For example, in this episode, you finally have the ability to fully repay these debts, although you may choose not to do so for the time being. The reason for choosing to pay off debts first is that the interest rate of debts is generally higher than the return rate of your investment. Paying off debts first is actually a good investment
The ninth level is financial freedom. The way I treat your financial freedom is that your assets bring more cash flow than your financial independence, and can let you complete your life goals. Therefore, there is no unified standard for financial freedom, but it varies from person to person. The most important indicator outside income is desire. For some people, they are already very happy when they wear comfortable clothes and drive Volvo with a hamburger and Coke. Although they have huge wealth, their annual expenditure is not very large, and they enjoy the greatest freedom. But for others, only by driving luxury cars and eating expensive food materials can they be happy. Then their annual expenditure is larger, and naturally the standard of financial independence and financial freedom is higher. It is certain that the smaller your desire is. The easier it is for you to achieve financial freedom, which is why all religions regard abstinence as the first important thing to achieve happiness in life.
The tenth level is financial spillovers. This episode is very simple. The cash flow brought by your assets far exceeds all your needs, so you don't know how to spend it. To sum up, no matter where you are in the episode, you must remember that the source of your wealth is the value you contribute to society, pyramid selling, gambling, etc. These illegal economic activities should not be tried. Life is not a purposeful contest, It's a piece of music. Who plays the most important piece? Whose piano is the most expensive? Neither, but who really played the most moving melody in his heart.
The financial grade is roughly divided into the above 10 grades. I wonder where you are now? No matter what level you are in, you need to work hard. After all, only a few people can become people at the top of the pyramid.
