Levels Of Financial Freedom

We think of financial freedom as the ability to make decisions without fear of not being able to support oneself financially. You’ll almost always need a plan to attain to true financial freedom. And it’s here that we often get trapped. We are so engrossed in day-to-day life that financial independence appears to be a pipe dream. However, if we view financial independence as a series of small steps, the goal becomes more attainable and practical. It also helps to make the journey less daunting.
The series of small steps or goals, also known as the levels of financial freedom are as follows:


Things aren’t simple at this level, and you might be unhappy with your financial situation.

You’re probably reliant on others financially. And at this point, you can probably only go on like this for a short time.


When your outgoings and expenses are equal to your earnings, you have “survival.”

You should be able to fulfill your financial obligations, pay all of your bills, and not rely on anyone or anything to assist you handle your expenses at this point.

Debt Freedom

You can begin saving whenever you’ve been able to consistently meet your financial obligations, have paid off some debts, and have kept your costs low. First, set aside money for an emergency fund, and then set aside money for long-term growth.

Safety and security

We believe it’s time to start investing when you’ve built up your emergency cash.

When you’ve developed a solid investment foundation, you shouldn’t have to rely on your salary to fund your basic expenses. You may be successfully developing and managing your wealth and on your way to achieving financial independence.


You should have established good, long-term investments by now. And the income from your investments is sufficient to support your current lifestyle. At this point, your wise investments should be paying you handsomely.


You should have enough investment income that you have more than you need. Here your focus should be on sensible stewardship of this wealth for any beneficiaries.

Financial independence will take time to achieve, but with peace of mind and confidence, control over your fate will be well worth the effort.

Is It Better To Save Money Or To Invest?

That is entirely dependent on your risk tolerance, financial needs, and the time frame in which you need to access the funds. Investing has the potential to yield substantially higher returns than savings accounts, but it does so at the expense of risk, especially over shorter time periods.
If you’re putting money aside for a short-term purpose and will need the money soon, you’re usually better off keeping it in a savings account. On the other hand, if your aims are longer-term, you’ll usually discover that investing produces better outcomes.

Some questions that you would need to ask yourself if you cant decide on whether to save or to invest are;
Do you have enough cash on hand to pay three to six months’ worth of fixed expenses? Start saving if you haven’t already.
Do you have any additional short-term goals that need these funds (such as travel plans)? If this is the case, you should begin saving right away.
Do you think you’ll be able to retire at the age you want? Start investing if you haven’t already.
Do you realize the dangers of investing this money for a long-term goal like retirement? Are you willing to wait to access your money in order to benefit from compounding? If this is the case, you should start investing.

Do you like how you’ve divided your monthly savings and investments so far? What areas do you feel you’re falling short on?
While this list isn’t perfect, it’s a good place to start when it comes to visualizing the future you want, planning how to get there, and budgeting for the costs. Working with a financial advisor at Vita Wealth Management will help you assess your present financial situation, future financial goals, and the exact method for achieving them.

Let's Begin Our Conversation

Fill up your information and one of our Consultant will contact you shortly.

location Vita Wealth Management LLC, Dubai

phone +971 4 346 6567

Get In Touch