6 Levels of FI
Clarity
1
You figure out where you are financially, and where you want to go.
Clarity
Self-Sufficiency
2
You've moved out of mom and dad's and can cover your expenses.
Self-Sufficiency
Breathing Room
3
You're saving some money and no longer living paycheck-to-paycheck.
Breathing Room
Stability
4
You have no "bad" debt and six months' worth of expenses for emergencies.
Stability
Flexibility
5
You have at least two years of expenses saved. You could take a year off work.
Flexibility
Financial Independence
6
You can live off the income your investments generate.
Financial Independence