0. You Earn Less than you Spend This is obviously a good place to avoid and represents the least amount of freedom. No one should be here, but I added it because I know many people (particularly in the US) operate regularly in this stage. 1. Your Job Covers Your Expenses This is where a lot of people are. You spend everything you make. At this stage, losing your job is a terrifying prospect because you are only a week or two away from being back in stage 0. A few more weeks, (depending on how long you can string out your credit cards) and you'd be looking at bankruptcy. At this stage, changing jobs is very risky because, if it doesn't work out, you have very little cushion to let … [Read more...] about 10 Stages of Financial Freedom