10 Levels of Financial Independence

[@nobertstanel9428]

level 3 - it's ,, Parkinson's law ", which says the more you earn - the more you spend. And thats so true, basically all of my friends,relatives etc - lives like that. Great video, great attitude - Subed

[@BeatTheBush]

Certainly, life styles inflate to match your income is another way to put it. It appears to me that doing so is the norm.

[@nobertstanel9428]

Yes it is, sadly, and people by the age of 50 wonders - what did they missed on this journey called life . Ironic :)) - , best of luck man ! :)

[@BeatTheBush]

Thanks! =D

[@leekazuya1305]

nope, i use my will power to fight the urge to spend more, living like a college student despite having a good income, maybe thats why im still single lol. i mean i am still young, i can put those money in better use.

[@jakob7722]

Danceographic Ocean damn that sounds like a great show. I’d watch that if there’s was one here in the US

[@Speechiegirl1]

I am at level 5. Paid off my student loans. Husband and I are about to roll up our sleeves and attack the mortgage next

[@BeatTheBush]

NO STUDENT LOANS!!!! Yessss!!! I know the feeling. =D You realize how crazy it would be with the mortgage paid off? The money required to spend drops so much while your feeling of security sky rockets which in itself would make you smile everyday.

[@ZTREX11]

I think I'll cheat with 401k to get to level 6 rapidly

[@Johnnytrades-LTE]

Nice me too

[@sherahbrown1411]

I'm so glad to be enrolled in the UNIVERSITY OF BEAT THE BUSH this particular clip I find very enlightening because it's inclusive of all brackets like I'm in with team# Humble Beginnings!

[@BeatTheBush]

A sort of financial life level broken into steps makes trying for each one a bit more manageable.

[@sherahbrown1411]

BeatTheBush Absolutely! good stuff indeed. I'm recommending the younger PPL in my community that are driving for financial Independce or baller status also! ty!

[@BeatTheBush]

=D No prob. =D

[@MeiMeiandPorgi]

As a single mom, I've had to max my credit out more than once over the years. Pay it off during a good "season", then do it again. Life cycles. UGH. After watching a few of your videos (I think my first comment was a few months ago somewhere), I'm up 36 pts in the last 4 weeks. I think I went up another 6 points this week. I wait till at least two of my reports agree my FICO score is up before I feel confident. :D It's hard getting ahead when you live under the poverty level to begin with, but it's not impossible! Thanks for the vids. :)

[@BeatTheBush]

I imagine it would be pretty difficult. I cut my expenses pretty aggressively without sacrificing quality of life. But sometimes it might seem a bit spartan to some, I think of it more as training to see if I could do it. Sometimes I fail and I must go back to something more expensive. Here are some ideas to help you save more: kzbin.info/www/bejne/n6Won3h9mtR6abs

[@Fitforacting]

Thank you for your words. I’m also from a single parent family so I know how hard the struggle is. What kind of work do you do?

[@oldtoby4206]

I am at level 7 or 8 barebones... no debt, or loans. And contemplating on starting a business soon. Great video!

[@BeatTheBush]

Thanks! 7/8 is pretty high up there. Like another comment said, you don't always have to wait until the last stages of financial independence to start a business. To me, it's just a lot riskier when you do not have a stable base to work off of.

[@Austin_Brady]

Man, I'm so glad your channel exists. So many helpful pointers in such a short duration of time!

[@BeatTheBush]

=D Thanks for finding my channel. I keep all the financial videos under my 'Advanced Finance' playlist here: kzbin.info/aero/PLAffnc1joZvaVAUewyWIustcKgh5coR8o

[@michaelrorman1138]

Great video and useful information as always. You have a great way of presenting the information.

[@BeatTheBush]

Thanks!

[@renobaker4424]

Thank you for telling me im not as close to financial independance than i thought i was! I came in to this thinking id be higher up, but sitting at a 3 right now. i just started a business recently so im climbing my way to level 5 hopefully by the end of next year.

[@BeatTheBush]

Lol... financial independence? You just need a positive networth of owning your own place to live PLUS about $500k as a start. $1-2 million more realistically.

[@makelifeholistic]

Have just discovered your channel today. This was really beating the bush, not beating about the bush in your financial independence analysis and presentation. So simple and clear. Thanks.

[@BeatTheBush]

You're welcome! =D

[@garysimpson7326]

Once I got to level 6, wealth started to accumulate pretty fast. The next 15 years of working allowed me to accumulate a lot of wealth. This guy speaks truth. It takes time but it is truth.

[@hybby]

If a person rents, and avoids plunging hundreds of thousands into the negative investment that is a house (unless you have a family... and then maybe a house is a good idea)... and has no debts.. you can automatically jump to L7? Well that raised my happiness level instantly!

[@niceguyjayson]

I really appreciate this way of looking at financial independence. It does indeed make it seem like its doable!

[@BeatTheBush]

You're welcome! One step at a time is a lot easier than save $1 million. lol.

[@DonBMW]

You are the man! Awesome video. It is very clear and well presented, and provides a nice overview to determine what level you are in and what you should be working towards. Obviously you can go into a ton of more detail about each level, but that's not the point of the video. We are at Level 6, no CC or Student Loan debts, and working diligently to pay off the mortgage. Life is good and it's a great feeling to wake up every morning knowing we have no consumer debts and that there is nice chunk of excess cash every month.

[@BeatTheBush]

Security is important to have as a life companion even if it's for the purpose of feeling warm and fuzzy all the time. Sleeping money I call it.

[@shami013]

very informative video! I liked the way you have put it down into steps which is clear. It triggers motivation towards the ultimate freedom of life - the FI. Looking forward to more from your info-pedia!

[@BeatTheBush]

Each step is still huge but a least its divided a little bit more than just one single step.

[@ahumm8280]

I just found your channel from viewing similar content yesterday and you are instant no1 favorite!

[@iresine31]

interesting and helpful! Currently at level 3, working to pay off CC and then car debt.

[@BeatTheBush]

Most people are at level 3 and its going to take some concentrated effort to get to level 4. Interestingly, most people can get go from 3 to 4 in 6-12 months if they really attack the problem.

[@esha48911]

Break even for me , but looking to move on up soon! I noticed that life throws things in your way to make sure you are dedicated , I had to wipe out my saving for my air conditioner and I just rebuilt it and still going! Great video !!

[@BeatTheBush]

Thanks! Having the next somewhat smaller step is great rather than just look at the peak. Gives you more concrete goal to work towards.

[@robioavion]

I love watching your videos. They really do teach me about money and finances. Thank you

[@BeatTheBush]

=D It's important to have an overall picture, sort of a map, so you can work towards a goal. Otherwise, without a goal, you just do whatever.

[@torrancecody845]

Thanks for making your videos short and simple.

[@BeatTheBush]

You're welcome. =D I hope spelling out the levels really gives perspective of your own financial situation. Just knowing these different stages makes it a more tangible milestone so that you can work towards each level.

[@ChickenHues]

We're working on level 6! It's going to be hard, but we know it will be worth it!

[@umyde]

I love streamlined frameworks from which to take action - and yours rocks! Thank you for creating and sharing this video :)

[@enriquev8653]

Once again great video. I just started watching 3 days ago and I've already learned so much. Also the mistakes I have made. I'm probably on level 3 keep up the great work! Will recommed to friends.

[@BeatTheBush]

=D I'm glad! Looking at your financial status this way gives it some perspective and target. Otherwise if you do not know where you are going, you'll likely just spin your wheels.

[@JeremyKosiba23]

Great video! One of the best I’ve watch.

[@clarasantiso3401]

Wow I've learned a lot with just 3 of your very, very informative videos. I'll keep watching and better yet learning!

[@BeatTheBush]

You're welcome! Glad you might actually think about your finances in a totally different way.

[@carolineoli752]

Ok, I have to say.. I love watching your videos, because obviously you teach a lot of very pertinent information that I only wish we all learnt in high school, and you teach in an easy to understand and concise manner.. however, quite often I listen over and over again to the same videos because I love the sound of your voice !! :0)) There you go, you have a wonderful, strong voice and great speech.. you deserved to know ;0)

[@greenacresfamily]

I am currently at Level 3, I have of course, been at Level 2 and unfortunately at Level 1 also. I am working on Level 4 by EOY and Level 7 by 2019. This is an excellent way of seeing this path goal. Thanks for this video.

[@BeatTheBush]

Yeah, paying off debts is a slow process but it snow balls as you free up the interest you pay. You're welcome. =D

[@morrissey8485]

I really like your modest and simple approach! Very informative and actionable information. Keep it coming buddy!

[@BeatTheBush]

Thanks much! =D

[@SilverFan21k]

Fantastic video! Congrats on your subscriber and viewership count!

[@iluvhotpigs5827]

What a great video!!!!! Very insightful!!

[@1rocknroy]

BeatTheBush, one more thing. Because of your motivational videos I started moving my 33K earning .75% at Capital One savings to a credit union checking account paying 3% and I only have to use their debit card 10 times each month. They can only do that on up to 15K. I also found a good savings account paying 1.25% with a minimum balance of 10K. So Thank you for all your wonderful motivational and educational videos.

[@BeatTheBush]

I'm sort of on the fence about the accounts that requires usage of the debit card. $15,000*(3-1.05)% = $292 more compared to a do nothing savings account. 10 times each month means you need to use it 120 times a year. $486 spending a month 5% cash back using credit cards * 12 months = $292. So I recommend to use your debit card for very low priced items to satisfy their requirement and no more. Still, I wish there was a more automatic way.

[@1rocknroy]

I agree. Thanks!

[@sparkstarter]

made a similar list myself, I like yours better, thanks for sharing.

[@BeatTheBush]

You're welcome! =D

[@Fitforacting]

sparkstarter what was your list?

[@NANGSGARAGE]

Good video, level system is a great way to teach

[@BeatTheBush]

=D

[@skmanny2525]

A new outlook on my financial goals ! Awesome video

[@BeatTheBush]

=D Gives you smaller steps slightly more manageable. But each level might take many years to complete anyhow.

[@extraglossy]

such great information! im loving your videos!

[@BeatTheBush]

Thanks! Hey I know a Vanessa Castro long time ago. Did you drive a black mustang long time ago?

[@6i6ah]

Hi! Thanks for the video/sharing. It's a very useful reminder/insight. I've been planning/budgeting my personal finance for almost 2 years now, ever since I started working after i graduated from university. I just use excel spreadsheet. I try to live as frugal/minimal as i can and i found it to be very liberating. I used to hoard things, and always prone to impulse buying. But over the past 6 months or so, i try to increase the quality of my consumption rather than quantity - and it has been great. For example, i will spend extra money to buy 3-4 good clothes, that are wearable for every occasion so that i don't go out and buy more clothes out of impulse buying or just to hoard. I tracked down every items purchased/bill paid (except for food) on the Note app, and really think through how i felt after each purchase. So far it helps because i can visualize where my money go. Sometimes you spend spend spend, and at the end of the month, you try to think back where did all your money go, and you can't remember a thing hahaha. I've been there and i think enough is enough.

[@BeatTheBush]

I'm glad you started this which sounds pretty early. Good going!

[@leidyyohanarodriguezcalzad4670]

Thank you, this video gave a good reference point about my financial situation and what goals I must stablish

[@BeatTheBush]

=D It's always good to see where you are and where you want to go. Then you set your goals and set mini milestones to reach it.

[@AvidLearner11]

I guess I never even imagined being able to get out of paying mortgage forever. This video forced me to imagine beyond that. Thanks!

[@EtherealReality]

Currently working on Level 6. Paid off the loans a few years ago. getting rid of the mortgage is going to take Much longer. Nice, simple breakdown of the financial steps.

[@7ajhubbell]

Thank you.

[@BeatTheBush]

You're welcome.

[@HangYuXu]

Good stuff! Enjoy every second of your video!

[@BeatTheBush]

Glad you liked it. =D

[@edgehodl4832]

This video should be 1 mil+ views, golden content

[@Zygmunator]

Good video. Shows that it can be done in smaller steps.

[@HearThisDestinyChanger]

thanks for sharing

[@BeatTheBush]

You're welcome! =D

[@maya1908]

I enjoyed this. Watching it again!

[@BeatTheBush]

=D Thanks! =D

[@1rocknroy]

BeatTheBush you are great! Your explanation of 8-10 was confusing to me after watching it twice. I think I'm at 10. I secured my retirement in 11 1/2 years at my blue collar job. I had NOTHING at age 54 but household goods and my 96 Nissan truck. I started saving 10%, quickly jumped it to 17% and the last two working years I was saving 56% of my income and rarely missing it. Now I am retired and loving my time and still saving 44% of my retirement income (SS and pension). I feel very grateful because I worried so much as to whether I could afford to retire.

[@BeatTheBush]

That's really good! Wow. I'm certainly not at 10 myself as I have some ways to go. SS and pension really brings the finance aspect much closer to reality. When you are Financially Independent which you seem to solidly be in, then all your income is more than your expenses. Expenses includes food, clothing, medical, housing costs, everything. So why watch a Financial Independence video when you are already? I'm grateful for the view though. =D

[@1rocknroy]

I basically wanted you to read my message and I have been interested in the definition of financial independence vs financial freedom. I enjoy your attitude so most of your videos are good. :)

[@michaelhenry2292]

This video is absolutely amazing

[@BeatTheBush]

Thanks! =D

[@josephbrown5187]

Well thought out..... great video

[@BeatTheBush]

=D

[@videogamesare1]

"How's it going everybody this is beatthebush" -The start to a great next 10 minutes

[@afbanales]

One observation....the pevels are great for saving money. Your last step you say that you can now start your business. I would say that businesses can start at any level. It can be a catalyst to get you through levels faster. I am learning and doing this as i go. I was determined to save save save. While that is a great habit, saving is limited to your income level minus your necessary expenses. Even though i am at level 5, per your scale, i am trying to hustle to increase cash flow to be able to save more faster. Other than that, I enjoyed your video

[@BeatTheBush]

Oh yes, I agree. You can start at any level but the finances backing your business may be a bit shaky. I view this more of a type of freedom where you can concentrate on your business more if you are at higher levels, allowing to experiment more and take risks you would not otherwise.

[@hollowroots2197]

This was very motivating. I'm currently at level 3, like 90% of Americans. However, it's time to really go at it this year and work my hardest to make larger steps toward financial freedom. When I get to level 6, I'll be extremely satisfied. Somewhere between level 7 and 8 is where I'd like to end up. I'm still somewhat young (32), so the opportunity is there waiting.

[@BeatTheBush]

Ha ha ha! You have fallen trap to my ultimate goal of tricking people to think about their financial situation and thereby waking up and starting to work towards higher levels. Very glad you're starting to think about it as that's all I wanted to do. =D Cheers!

[@hollowroots2197]

Yep, I've been thinking on it for quite awhile now and very recently stumbled onto your channel since I'm trying to raise my credit score. (currently at 740-ish all across) I need to tackle my expenses in increments instead of trying to knock it all out at one time, which sometimes makes things a little difficult and stressful. My goal right now is to finish paying off my car, personal loan and start making double payments on my mortgage. I keep a pretty low balance on my credit cards, so that's no issue. Keep up the videos because you have a new subscriber!

[@BeatTheBush]

UrsaMajor I agree with cutting expense a little at a time. You need to cut one thing out and sort of feel it out and see how comfortable you are with it before moving onto another. You might realize after cutting something and perhaps replacing it with a low cost equivalent alternative that hey! it's not that bad and not all that different! You mean you keep a low running balance I assume on your credit cards. Good to have a high total limit and a low balance.

[@hollowroots2197]

Yes, low balance, my fault. I generally keep it between 1-5%. At the current rate, I have another 1.5 years on my auto loan. Aiming to cut that in half after the first of the year. Financial freedom, here I come...lol

[@BeatTheBush]

UrsaMajor Awk... auto loan. I only had one for about 6 months. It was on fire to me so I put everything I could while cutting expenses to do it. Good luck with your auto loan, depending on the interest rate, I would speed it up via the increasing cash flow method in my other vid.

[@marcuswong4685]

Level 5.... thank you for motivation to push myself further

[@BeatTheBush]

You're welcome! =D

[@AlphaSQUADofficial]

I'm between level 9 and 10

[@BeatTheBush]

That's really cool. Just sitting about and enjoying life then? =D Retired and happy? =D

[@aappiah011]

Alpha SQUAD official How did you get there?

[@bbzinhodomal2]

I am level 2 and I am going to level 9 and 10, because my grandma gave me a lot of money.

[@privevinogradov6013]

hahhaha

[@amjed6579]

and I am your new friend

[@atiindacity]

Nice advice.. 39 yrs old. may be 8- here.. work as hard till now to get my goal in the ages of 55 but i think i do it in a yr or two.

[@BeatTheBush]

Sometimes the goal is just so far off, you have to enjoy the journey going there.

[@tankhorlin]

This is very informative. Thank u

[@BeatTheBush]

=D

[@robertharrington2658]

Very good Video, Makes me look at my level and want to work harder to the next level. I do notice that in life you are always moving up and down considering many aspects that can affect your life. If you plan it right with emergency funds and your standard of living with in your means then you will do well. You are always looking at the different aspects of Money / Wealth and how it can affect you. Thanks again for the explanation on the different levels.

[@BeatTheBush]

Sort of gamify life. You know where you are, now time to get to the next one. =D

[@BeastinOnLife]

I'm almost done with level 4. I have $1700 in credit cards and then I'll be able to move on to my student loans. I plan to be done with my credit cards in 6 months, get a more satisfying career to help pay for my student loans, instead of a house I'd like to refurbish an apartment complex Or buy a large tract of land and build an entire subdivision. I like your perspective on this and I hope it helps keep me focused on getting this accomplished! :D

[@BeatTheBush]

That's a good starting point. Although that credit card debt is sort of burning a hole right now. I think the 6 month goal is a good one. You really want to pay those off as if they are on fire. The interest is just burning money... about $28/month evaporated! gone! Lots of better ways to use it than burning it. =D

[@carbrock.2854]

Was at level 5 for a while and am back to level 4 this year as we brought in two foster children and had to upsize to a minivan, which we didn't have money saved up for, so we had to get a car loan for the first time in almost eight years. Lesson learned in not being smarter with our money. Never another car loan, and it's time to start investing beyond our 401Ks!

[@BeatTheBush]

Wow... congrats on your children. So generous of you to accept them into your family! =D

[@prospertech1860]

This was awseome i loved it

[@DutchedPinayTravels]

I like the way you divide the steps to financial independence into 10 levels.

[@BeatTheBush]

=D

[@meganp8766]

This really opened my eyes.

[@BeatTheBush]

=D Many of those steps is a road block that slows you down in accumulating wealth. Like shackles.

[@rmcbeth4254]

just started watching your videos. They are awesome man. Great info! I'm at level 4!

[@BeatTheBush]

That's better than most. =D

[@JoshuaBates01]

Such an excellent explanation, thanks so much!

[@BeatTheBush]

You're welcome! =D

[@TobiasKonrath]

I really like listening to your videos, somehow your voice is very reassuring and nice to listen to, of course what you talk about is really interesting and so helpful. I have always followed my dads advice to never spend more than i have, my lifestyle though is very unstable, since i'm a designer i struggle to find well paid jobs and i have to move around alot. I always manage to save up for 'bad times' but those happen quite alot. having no loans, car loans etc. is what keeps me sane., but i worry about getting older....i should be building wealth but i just don't know how..... I will move from germany to bangkok very soon, which will take a big slice out of my current savings but i will try to be as minimalist and frugal as possible...... anyway i love your videos, keep on doing it!!!

[@BeatTheBush]

Thanks for watching my vids! I sounds like as a designer, you might have to be more aggressive in pipelining your jobs so you get more of them stacked in a row. Of course I haven't done much of this contract to contract type of work but that is my guess.

[@TobiasKonrath]

BeatTheBush :) i'm actually moving to thailand to work as a design lecturer, i will have a relatively low workload and just 9 months of teaching so my plan is to do other jobs on the side and also do projects during the term breaks. i started watching your videos to get some ideas on how to manage my income since i will have just 9 months of steady income. thanks for your quick reply! its nice to see that some people care and read! i feel lucky to have stumbled over your videos!

[@simoc24]

Thank you for the video, got me to think about level 8. I knew I will be in level 9 around 45, left level 6 at 36, currently at level 7 at 38, but I did not think much about level 8...now back to excel spreadsheet I need to go :) thanks again

[@BeatTheBush]

=D Is there a level 11? Sure. I think if you're at level 10 you wont be watching KZbin videos to get there though.

[@MelbourneVolleyballAcademy]

i usually don't like videos, but you really break it down well.

[@BeatTheBush]

Thanks for your comment!

[@rnrteg]

This is a great video, thanks to your channel, I've iterated on all my expenses to see what extra savings I can squeeze from them, and just this month I've reduced my monthly burn rate by $100 dollars. Just this savings, rolled back into my mortgage, is going to take months off my estimated date of level 7 financial independence. Thank you and keep up the great content!

[@mrtechguy92]

any tips for a person at level 3 to advance to higher levels?

[@michelleifill5834]

Own your own AMP store and maximize your potential earnings by sharing Apps and Games. For more information click on the link dakota77.ampstore.io

[@InimitaPaul]

They call it a 3 by 9 sales matrix, the rest of the world calls it a pyramid scheme.

[@delsol7878]

If I was in your shoes... 1. I would get rid of any item that requires payment, such as a car. Sell it and buy used about $4k or so. You can easily find well maintained Civic that you can use for next 5 to 10 years. (I just sold my Cayman to pay off some balance on mortgage and bought myself a 08 Scion xB for $4400. I bought Cayman for cash by the way.) 2. I would sell all my junks. Junk meaning, anything that you don't use more than once a month. I just got rid of my RC toys that I used to play with. 3. Be frugal. Budget your money monthly and do not exceed the amount. I personally don't spend more than $250 on groceries each month. My eating out budget is $100/month. 4. Stop drinking coffee from outside. I am not a coffee drinker so it doesn't apply to me but I see my friends easily spending $100+/month. I don't smoke but quit smoking would save a lot of money too. 5. Limit dining out. Cook food. Pack your lunch. ... There are so many things that I can list on and on. But the whole point is to have less expense. Breaking even meaning you have enough income to cover your monthly expenses. All you gotta do is to lower expenses as much as you can and you will start to see positive cash in your bank. I am working on my paying off mortgage and saving money for 2nd house for investment.

[@timmychanofficial]

Pay off any debt as soon as possible. No need to buy new cars, use credit cards (very few exceptions such as building good credit by purchasing affordables), or take out loans for anything really.

[@randzopyr1038]

The biggest is to sit down and write a budget - the expenses should not exceed available monthly funds. If anything looks like waste then cut it out, cancel it, return it, sell it. If you're comfortable eliminating or changing things (dropping to lower internet speed, Netflix instead of cable, etc...) do those to, otherwise try a month with your current budget to see how it feels. Don't forget to allow adequate money for food (you're cooking at home, not eating out), gas, and incidentals (e.g. haircut, oil change, clothing repair/replacement, and electric bill fluctuation). Once you're through the first month you should have a better idea of how your money works compared to what you wrote. You may find you value the cash more than the service and can cancel or change some of your bills to increase your disposable income. If you have disposable income then try to put a percentage of it towards debt to pay off debt faster, and another percentage into savings. It doesn't have to be a lot, it's about building the habit and having some kind of cushion. IMO the easiest to deal with is something like a 33%/33%/33% split, although more into savings/debt is better. Also, any money leftover at the end of the month should be treated as disposable income and split accordingly - it's not drinking money or spa day or new widget money. Once one debt is paid off continue to spend the same amount of money per month to pay the remaining debts - just use the extra money towards the highest interest rate OR lowest debt (whichever feels better to you). Depending on your debt and savings - at some point you may be able to re-evaluate your disposable spending split and put more into savings until you build a comfortable 3-6 month emergency fund (covers all budgeted living expenses for 3-6 months). When the emergency fund is fully funded push the rest towards debt (if still applicable). Once debt is gone you're into #4/5. You may find it's not beneficial to pay off student loan debt or the mortgage and instead opt to go straight to investing - that's something to take to a personal finance forum once you reach that point.

[@VictoryStudios2012]

im really enjoying informative vids like this. Sure most of ur vids are random, but they really go in dept with the knowledge we need to know

[@BeatTheBush]

Glad to hear! I feel most people do not know what they need to know. Because if you do not know about it, you wouldn't be looking for it. =)

[@tubejim101]

Great video.

[@BeatTheBush]

Thanks! =D

[@kenpachination1419]

somewhere close to 9 have only handful of things to pay to be level nine, but i would like a better standard of living, financial freedom from a 9-5.

[@dm3988]

Thank you for creating this video. Your analysis about financial independence is extremely insightful and helpful. Could you make a video about asset appreciation? An analysis of which assets have the highest appreciation over the long term? Thank you!!! Your channel and your willingness to share your knowledge is a true gift to the public.

[@BeatTheBush]

I'll make a note of that. However, asset appreciation over the long term is sorta like having an educated guess. You can get more appreciation with more risk and no matter how safe the asset, there is some level of risk. There's also the case of if you want to do a lot of research or you just want to plop the money down and set and forget. If its the ladder case, the general knowledge of the world is just plop it in a low fee index fund.

[@typorter-pp6lh]

I was at Level 5 when I was 24 way back in 1999. Paying off student loans, car loans and credit card bills is such a huge step in financial success. I am now at Level 7 and possibly Level 8 with a house in the Bay Area fully paid off. I drive a beat up 2005 Corolla instead of a fancy BMW. I still wear t shirts I bought 10 years ago from Old Navy. I stopped wasting money on non-essential stuff like cable TV so I can have plenty for the important things.

[@BeatTheBush]

Looks like you do almost the same things I do. Except I drive an old fancy car lol. Now time to look to quit the day job! =D

[@shaunlobo]

I'm between level 9 and 10. I'm currently 33 years old and I have passive income more than double my expenses. Just because I am financially independent does not mean that I have stopped working . I do have that choice but the fear of retiring and doing nothing does not seem as attractive as it seemed when I was striving to get financially independent. In short, one needs struggles in life to make it good and worthwhile. While not having to worry about working to solely earn is the greatest joy of passive income, life and troubles do not stop there on

[@BeatTheBush]

You have that right. Level 10 is not the end. There is a secret level most people never traverse.

[@mr.bitaho22]

Thanks for the Break Down 👌🏾

[@lisafanucchi5939]

Thank you!

[@BeatTheBush]

You're welcome!

[@calnguyen2428]

Nice! But I think you should separate personal loans (i.e. general loans, business loans, etc.) into its own category, because those things can happen whenever you want pretty much. For example, you could be level 9 yet have a loan out (not necessarily mortgages, just some kind of loan), and yet somehow you'd be considered level 4 again even though you already reached 9. Does that make sense? :)

[@micbec2007]

Just subscribed to your channel very informative videos

[@BeatTheBush]

Thanks!

[@CodeWithZuks]

Entering level 5 this month (we finishing my wife's student loan, finished mine about 2 months ago)... Will enter level 6 in about 4 years as we decided to save up and buy an apartment cash In fact will simultaneous enter level 7 when we enter level 6 Entering level 8 will take a bit more time... I love this break down! Thanks BeatTheBush! :)

[@BeatTheBush]

You're welcome! Each level is a whole new level. =D

[@ultimatefusionclub4531]

very good video thank you!

[@BeatTheBush]

Thanks! =D

[@claudiamoran7745]

Nice break down of financial levels.

[@BeatTheBush]

=D

[@lex6819]

I'm done with level 6, and working on level 7. Levels 8 and 9 seem unattainable, but maybe everything will just work itself out somehow.

[@BeatTheBush]

It takes a long time to go from one level to another. But at least it's more like 10 years a level?

[@didarden]

thank you

[@BeatTheBush]

You're welcome!

[@kauaiboy111]

I live in hawaii and the average cost of housing is $595,000 not to mention high cost of living (gas, food, utilities) The average rent is $2200 a month. Looks like I have to move to the states just to get to level 6! Awesome vids by the way.

[@BeatTheBush]

I'm in Bay Area, CA where average housing cost is $712,000 O_O. So... don't move here for level 6. It's an interesting point you hinted at which is to actually pick up and move to a lower housing cost area. It's easily a matter of $300-400k difference. This difference translates to many years of reduction in the number of years you must work before retirement. Of course, the flip side, would be how much you like the area and if you have family and friends there as well that makes it difficult to leave.

[@jamesly1066]

Imadafied I live in Southern California. A 3 bedroom home in the ghetto here is $500,000. Lame. So I’ve been investing my money rather than saving it for a down payment.

[@FutureLaugh]

My friend I am in a unique position, I have absolutely zero debt. i live grossly within my means, and have everything i own paid off. I took out a small student loan and paid that off years ago. My problem is I have been told having too little credit is somehow worse than having bad credit. To me throwing a new television or buying a new car is so far removed from what i want to do, but i have been told eventually if i want to purchase a house or make my life easier- i need credit. Do you have any tips, coming from a frugal background, how we can maintain our sensibility without being a typical consumer who lives on credit? The idea of interest alone disgusts me!

[@BeatTheBush]

Just spend what you normally would on a credit card. You use it in its grace period at all times and you owe no interest. It is the preferred way to use it and I the only way I would recommend using a credit card. Plus you get all the cash back once you can get the good credit cards.

[@geraldinepearson889]

Thanks for pointing this out. I was in the exact same boat. Except I had financed two cars in the past. Which didn't build my credit past a 650. I paid for college out of pocket (took a little longer but I am debt free). My mom added me to her cc two years ago as an authorized user. I barely used the card. That sent my score to high 700s. I wanted to purchase my first home last yr. I made the correct income &I had the employment history. I was approved for the mortgage. Got to the table and they said I didn't have enough revolving credit. I was told that if I had student loans, a car payment, two more credit cards I would be in my dream house now. Instead I loss the house. I was completely shocked and frustrated bcuz I believe that I did everything right. A debt free life. I spoke w a new fin. Officer and under writer and this is what I was told. Get a minimum of 4 lines of credit. That will show revolving credit. This can range from a secured cc to a store cc. Also, bcuz of the housing crisis..financing companies are now looking at the authorized users. It no longer holds as much weight as it once did. They prefer you have your own cc. So, now im on that path to find my new dream house within the next yr or two. This is what I recommend (I'm doing now) I just received two Chase cc Within 6mth I will apply for 2 more cc Have someone put you on as an authorized user -it may or may not help w purchase of a home but what it will do is build your credit up enough that you will qualify for your own cc. As an authorized user you can still be cheap. Not use the card(s) and still get the credit history from all of their hard work :) chose someone w long and responsible credit. I personally don't care for store cc. Bcuz I'm to cheap that the perks wouldn't benefit me. I hope this helped. Best of luck

[@hybby]

Do what BeatTheBush. Just be incredibly careful about using the credit cards. Be incredibly disciplined about paying that off 100%.

[@thedudeandstuff169]

you can get a mortgage with no credit score - Dave Ramsey talks about it. Its called manual underwriting at churchhill mortgage - www.churchillmortgage.com/no-score-loans

[@soylarcandles]

You can use a credit card to pay one of your small household bills. Just pay it off every month so you do not incur interest. That will help you build your credit. You can set up automatic payments to come right out of your checking account. That way you won't be hit with any late payment fees.

[@SlavElenkov]

level 7 here. been a long tough road to get here. it seems level 8 will require double the work i have already done.

[@cr2lives]

How's it going 8 months later? I ask because I am level 7, also. And I agree with your outlook that it will take double the work to achieve level 8.

[@ProSimples]

You made it clear. Subscribed. 😃

[@BeatTheBush]

Thanks! Welcome!

[@Pigearvet]

Sharing this with my children. They don't teach this in school. Thank You.

[@BeatTheBush]

They don't actually. Sometimes they have community college classes on financial literacy though.

[@Dimasstywan]

this is a very good content i don't think much people have discussed this, however i think you absolutely can start a business at any level

[@BeatTheBush]

The lower level you are, the higher the risk because you cannot even support yourself fully yet. It has been done for the big risk takers who sell their house to start a business.

[@DigitCookieVirus]

I am between Level 4 and 5. I am 90% done paying my student loan. Living in living rooms in my college years taught me a lot about just paying for basic necessities and not overspending.

[@BeatTheBush]

You're almost there! Go for it! =D

[@grayscale8628]

Currently on level 4 (no car) working to pay off student loans. This video really helped me. (:

[@BeatTheBush]

You know what will make you want to pay off you student loan sooner? They are usually at a lowish rate so you are inclined to just pay the monthly. Just add up all the interest payments you paid over the life of the student loan and that'll make you realize the enormous amount wasted that could've been in your pocket.

[@mr.baldhead3682]

this video was very informative on how you broke down the different levels. Right now I believe I'm at the wealth building level, i own 4 investment properties with no mortgages but I rent my house so I'm trying to change that scenario. My Credit card debt isn't that high but I'm planning on have it all paid off in the next 60 days... Good video thnks

[@BeatTheBush]

How cool! You can just sit on your but and all your living expenses are taken care of with your rentals? That must be very nice. =D I think not many people achieve this. How much time per week do you keep your rentals in running condition or just do managing?

[@mr.baldhead3682]

BeatTheBush I'm hands on with the management side.... its unreal because I haven't been in this situation long... I was one of them guys who saw gold when everyone else saw a lump of coal.. I bought at the bottom 3 multi-unit properties and rehabbed them. It took some time but they all are starting to come online. My train is picking up steam 👍👍

[@asadmoosvi]

Level 2 here. Got a long way to go, man. I'll hopefully get there one day though. Cool video by the way.

[@BeatTheBush]

Oh man. There's always a good place to start. Try my cashflow video to help you get started: kzbin.info/www/bejne/fmXRpWSdg8-rf7c

[@essentialadvantages6790]

Woohoo, level 9 baby!!

[@thegoodhen]

Oh wow... I am stressing myself with money every day, worried about not meeting my criteria, but... according to your table, I've made it to somewhere between 8 and 9... So I guess I don't need to worry all that much. :D Thanks for that!

[@BeatTheBush]

8 or 9 means you have very l little to worry about. You don't have creditors knocking down your door chasing you for money.

[@thegoodhen]

Luckily not. I guess I am very privileged. The prices are low in my country and I am able to earn money outside my country over the Internet (graphics, programming...). Also, I don't have a student loan because education is free here - just like it's supposed to be everywhere! I really don't get why you should pay for your education. It's in the best interest of the state to have educated people - if not for problem solving in general, it's the uneducated people who destabilize the state (such as by being easily manipulated by demagogues).

[@StefanIordan]

Good video.

[@BeatTheBush]

Thanks!

[@tommihakkinen2211]

I'm between 8 and 9, plan to be level 10 at age 43 though living in Luxembourg (Europe) with very high housing prices, but having a few side incomes and invested in real estate at the age of 25 it was possible. The key is saving and buying assets that grow over time. Thanks for the great channel!

[@BeatTheBush]

You don't need that many side income sources to make it work IF your spend rate is low. Well... if you get it to say $1000/month of profit then it become pretty meaningful.

[@jeffsnow7749]

Smart video!

[@BeatTheBush]

Thanks!

[@ParentsVoice]

This was really good!

[@BeatTheBush]

The levels? Breaking it down allows you to focus and know what you need to do to get to the next level.

[@obits3]

Glad you mentioned the fact that people shouldn’t just pay off their mortgage. Having cash on hand is very valuable. I think of it like this: The extra mortgage interest I pay is an insurance premium that gives me instant access to cash on hand. Further, the money never loses value (aside from the interest costs) because one dollar in my bank always equals one dollar of my mortgage balance.

[@BeatTheBush]

Holding on to that money is good until you can fully pay off your mortgage plus your emergency fund. But if you do not plan to do anything with that extra cash, then better just put it in the mortgage. It's a personal choice.

[@kayrealist9793]

I guess I would be a 9. Fun chart. You are teaching a lot of good stuff on your channel.

[@BeatTheBush]

That's crazy! What are you doing watching KZbin vids? Or I guess you retired to watching YT vids? =D Ha ha. Thanks for your support!

[@kayrealist9793]

No too young to retire. Im only in my mid 30's. KZbin is like a treasure trove of information. How can anyone not use youtube for information these days. :)

[@BeatTheBush]

It really is. You really have to weed out the bad stuff though which wastes your time because sometimes its hard to tell before you watch it.