How Much Money Do You Need To Be Happy?
ฝัง
- เผยแพร่เมื่อ 17 มิ.ย. 2024
- The 7 Levels of Wealth
00:00 Introduction
02:50 Financial dependence
You are still dependent on someone else to provide for you. If you’re a young child, this is entirely fine. But if you’re a grown-up, you probably do not want to stay at this level for too long. Most adults would be unhappy staying at this level.
05:10 Financial survival
You earn just enough income to cover your expenses. You are able to pay all your bills, but you do not have enough money left over to save. Nonetheless, you no longer require someone to financially support you.
07:25 Financial stability
You consistently earn enough money to cover your expenses and have enough left over to start saving. You have at least six months’ worth of living expenses in your emergency fund. You also manage your debt well and are on track to pay off your loans in due time. It is at this level that your stress levels about money start to come down.
09:35 Financial security
With a stable income and enough savings in the bank, you can now look forward to growing your wealth and planning your retirement. The extra funds you have now can be invested in securities (no pun intended) that suit your risk profile and financial goals. The more money you set aside for the right investments, the faster you can reach your goals.
11:53 Financial independence
You have steadily invested for a number of years and built a portfolio of solid, long-term investments that pay you enough passive income to cover your day-to-day living expenses into your retirement (or you have enough to liquidate to do the same). This essentially means that you no longer need to work another day in your life if you choose to; you can now rely on your investments to fund your lifestyle.
14:00 Financial freedom
You have continued to grow your wealth to a scale where your investments and passive income can now easily fund your preferred lifestyle. Whether it’s travel around the world, luxury goods, or unique experiences, you now have the wealth to pursue your dreams and aspirations. This is a level many people dream about, but many never attain.
16:41 Financial abundance
The haves and the have-yachts. You have more than you will ever need. At this level, your focus will be how you can be a proper steward for your wealth and the legacy you want to leave behind for future generations.
19:15 Why investing matters
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IMO, work your butts off in a competitive society like Singapore or US while you are young and have the propensity to increase your income rapidly. It's important to start in a competitive society where you can optimize your earnings. Invest diligently along the way. Target to be financially independent in your 40s. After that you can move on to live your desired life, be it in a lower-cost country or in Singapore.
Very refreshing - I've known these facts for the longest time, but it's so good to hear such a positive human spin you guys gave. Definitely a fan!
Level 7 make me sensed like batman Bruce ,lol ! Thanks guy, like yours talk, keep it up & we move up together
I enjoy taking Public transport, if I am not standing. You can smell the rose, watch TH-cam, listen and watch fifth person clips. 😂 Driving you need to find parking lot, which sometimes is more time consuming and stressful.
Hahaha thank you! Yes, and depending on the route sometimes trains are faster too!
Thank you for a great video as usual! Currently at Level 4 but hope to reach Level 5 within the next 5 - 7 years :)
Sounds like you already have a plan to get there! Keep going!
Super interesting video!! Well done guys - fantastic!! I will share this video with my teenage sons to kickstart their financial literacy journey!! Thanks again guys!
You're most welcome! Hope they like it and learn something too!
Nice talk ❤❤❤
Thanks!
Excellent video. Will share with the kids.
Thank you! We hope the kids like it too!
Super nice video and everyone should take this seriously ❤ Like and share 👍 🎉
Thank you!!
Thanks for the great video, currently I am between level 3 to level 4 due to mortgage loan. I would want to aim for at least level 5. I want to keep a low and steady and not fast and crash which I see a lot of ppl are doing.
Keep going, David!
These observations about singaporeans: 1. Good times have bred weak men who like to complain and blame govt. 2. Daily living costs are very reasonable but lifestyle costs are expensive. 3. Citizens like to complain about the price of everything but know the value of nothing. 4. Inflation is always caused by too much money, easy credit, and too little common sense. 5. Too much money makes you stupid. 6. There is half a Trillion in CPF balances. 7. Millennials and GenZ have spending appetites outsized to their talents and work skills.
I am over 55 and use a combination of savings, CPF interest and dividends to pay for SIA business class tickets because you don't want to be the richest man in the graveyard.
Another really great video, which everyone should watch. You should ask CNA to telecast it - for a fee of course!!! Would inspire alot of youngsters out there. I'm in my 60s, semi retired and am probably at level 5. The time to start saving - and then investing - is really ASAP after starting work. Concentrate on dividend stocks, not speculative ones. I've made mistakes along the way but that's OK provided you learn from them. Never, ever, have credit card debt - it is killing you! Once you have sufficient dividend income you can call the shots - even "sack your boss"! As you get older you can still grow your income by buying more dividend stocks but don't forget one thing- money not spent is not yours. You can't bring it with you to your next life.
Haha thanks Nick! Always good to hear from a long-time investor like you. You have a lot of experience to share that we all can learn from!
Thanks for the reply much appreciated. I'm a total amateur, no professional training. Have made mistakes along the way but I try to learn from them. I always believe in long term, don't sell the moment you have a bit of profit. You still receive dividends in good times as well as bad. And the economy works in cycles, what goes down will come up again and vice versa if the company has solid fundamentals. Good stocks I will only sell in a real emergency, and if you've held them for a good number of years, even in bad times the price will still be more than what you paid for it, so you won't lose out, you'll just make less.
Nice topic. i would say i am in level 5. We start to invest in real estate 6 years ago started without a lot of money or knowlegde and we have build up 9 rental appartement. Now we invest al the rent into the stockmarket to gain more assets.
I would say dont wait to start. Its never be the best time. You will learn along the way.
Very nice!
Looks like I am at Level 5. I retired after my passive income exceeded my salary. My health is good too. So, I am happy indeed.
You're doing great, Steven!!
How can we apply Dave Ramsey 7 baby steps in SG?
i think if you focus on what you can do rather than what you own, the mindset becomes more healthy
Nice one! Thanks for sharing!
It's relative. Even if you are at L5, you may not be happy if your mates are at L6. BTW, why the 5th Person when I only see 3, VAR? How about VAR(.) as you guys talk about variance and volatility all the time? Yet another great video, guys.
Comparison is the thief of joy. Glad you liked the video!
5 million dollars
I target Lvl 7 really eventually, but Lvl 6 in my 40s. My friend did better: he targeted a Lvl 4 girl with Lvl 7 dad.
The best invest 😂
While searching for wealth, pls spare some time for health. Beautiful Saturday morning …jogging now….
God is the best ever
use the $ wisely ,cant bring it with you when its time to depart from earth.and never in debt .
I know people who spend like L6 ( Freedom) on pay day and L2 (Survival) the rest of the month 😅..
So true... 😂
We wan u to make a video on how to achieve abundance of wealth steps by steps guide 😂
I don't think we are qualified to do that 😅
If you have wealth sometimes relatives and people will find trouble for you. This is the ugly side of human nature and you have to entertain make fake people.