Long-term fiscal goals can at times seem so large they feel virtually unattainable, especially if we are just getting started on our path to financial freedom.
Many who belong to the' Financially Independent, Retired Early' community have found it useful to break down the objective of becoming financially separate into smaller and more manageable levels of fiscal independence. You can get retirement planning advice in London via Foxgrove Associates.
This makes it a lot easier for us to monitor our progress, which then helps us to remain motivated through the procedure, but also because it helps us get over that first hurdle of beginning to chip away in the mountain of a job.
Financial Dependency
This is when your debt payments and other living expenses are greater than your income. Here you are in one way or another dependent on someone or something else to help you pay for your bills or if you happen to be a kid and don't actually have any bills. You need someone else, usually your parents, to pay to put food on the table and keep the lights on and have a roof over your head.
This is the level that all of us start out on so is referred to as financial dependence.
Financial Solvency
This is when you are current on all your debt payments and you can meet your financial commitments and your other living expenses without any outside help.
Financial Stability
This is usually defined as when you have built some sort of emergency fund in addition to being financially solvent.