Thursday, July 16, 2009

The 4 Levels of Wealth

Adam Khoo is one of the smartest Singaporean business authors I've ever come across. His book titled, Secrets of Self-Made Millionaires, is a very easy read and summarises many business and money concepts taught by other great authors such as Robert Kiyosaki. In chapter 5 of his book, he writes on the 4 levels of financial wealth (summarised with my own words), in ascending order:

Level 1: Financial Stability
- without having to work, you have enough money that can sustain your most basic lifestyle for at least 6 months

Level 2: Financial Security
- without having to work, you have "money making machines" that can sustain your most basic lifestyle indefinitely

Level 3: Financial Freedom
- without having to work, you have "money making machines" that can sustain your current lifestyle indefinitely

Level 4: Financial Abundance
- without having to work, you have "money making machines" that can sustain your desired lifestyle indefinitely

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