Hey Hustler,👋
Happy Monday
In 2016, the top industries for small businesses were health care, professional, scientific, and technical services, construction, retail trade, and accommodation and food services.
In 2011, the total revenue from all American small businesses reached $989.6 billion. Yes, that’s a “b”.
Topics For Today’s Email
☀️ Business Mode - The 6 Levels Of Wealth
🤔 Quiz Mode - TATA NANO’s project was shifted from Kolkata to which place?
Business Mode
The 6 Levels Of Wealth
Money and wealth play a significant role in our lives. We start off relying on others for financial support and gradually work towards becoming financially independent.
It's crucial to have a clear plan and sufficient knowledge about managing your finances in the future.
To provide you with a deeper understanding, here are the 6 levels of wealth.
Level 1 — Dependent
At this stage, you rely on someone else for your financial needs. You depend on them for your expenses until you are old enough to earn your own income. During this time, you may be supported by your family or an external organization.
You might be dealing with mounting debts that feel impossible to overcome. If asked what occupies your mind the most, worries about money would likely top the list due to your circumstances. Concepts like "financial independence" may seem so distant that they feel unworthy of consideration. Instead, the focus shifts to simply staying afloat or maintaining some semblance of normalcy in what feels like a chaotic environment.
If you relate to this and wish things were different, don’t be too hard on yourself. Notably, J.K. Rowling relied on government assistance while writing Harry Potter. Ray Dalio depended on a loan from his father when his first investment firm failed before he founded Bridgewater Associates, a multi-billion-dollar asset management company. Many successful entrepreneurs have begun their journeys from similar situations, but this is not where we want to remain.
Level 2 — Solvent
You have just enough money to cover your bills. While you're not in a comfortable financial situation, you can manage to make ends meet. Vacations are rare, and unexpected expenses can set you back for months. Your emergency funds and savings are limited and often dwindle down to nothing. Credit card debts decrease but then seem to rise again.
The thought of not receiving a paycheck for a month is frightening. This makes you hesitant to take risks with your job and future. You often compare yourself to your more affluent friends, who seem to seize opportunities you wish you could. However, you feel unable to take those chances. Saving for retirement always feels like something to think about later, as your focus remains on immediate needs.
The idea of being fully financially independent seems far away and unattainable, likely only achievable when you start receiving your State Pension, and even then, only if you live very frugally.
Level 3 — Stable
You have 3 to 6 months' worth of emergency funds and cash savings. This allows you to handle most reasonable unexpected expenses and maintain a good quality of life. While your vacations are not overly lavish, you typically manage to take a trip once or twice a year.
Your primary financial focus is on the next 6 months to a year, as planning beyond that is challenging due to limited resources. You have started to set aside a small amount each month for future investments. Additionally, you are building some assets, possibly having entered the property market. Most of your attention needs to be on your current situation.
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Level 4 — Secure
Your financial situation has significantly improved. You now have enough emergency savings to cover six months to a year, along with a solid investment for your future. This gives you confidence that you can manage unexpected job issues or one-time expenses. With this stronger financial foundation, your perspective on life has shifted.
You’re starting to think about your career and personal fulfillment, rather than just focusing on basic needs. You’re exploring the possibility of a meaningful career and considering whether your current job satisfies you. You’re beginning to enjoy the freedom of choice, and taking risks feels more achievable.
While you don’t experience high levels of daily anxiety about money, you still worry about the future and whether you have enough to pursue your goals. Although you are certainly in a better financial position than many, you are still far from where you want to be. You often find yourself admiring others who seem to have more financial freedom. Like everyone else, you have money concerns.
They don’t keep you awake at night, but you still have significant uncertainties about the future. You wonder if you can provide the lifestyle you desire for your family and if you can achieve a better work-life balance.
Level 5 — Independent
You’ve achieved it! It took time and effort, but you now possess what some refer to as F-U money (not my term 🙂). Work is now optional since you can sustain yourself with your assets. Well done!
After a brief break, you find that you don’t want to stop working completely. Your idea of ‘work’ has evolved. This shift is significant because, despite the usual challenges of daily life, you now have the freedom to choose what you want to do. Your time has become a valuable asset and is now central to your daily routine.
However, life isn’t entirely ‘solved.’ The habits that led to your independence took a long time to develop, and you might feel unfulfilled spending all your time on leisure activities like golf. Something feels off, but you can’t quite identify what it is…
Level 6 — Abundant
You now possess more than you could ever use. Your attention is turning from personal gain to your legacy. This reflection begins not just after your time is up, but now, as you ponder:
What change can I create?
What influence have I had on the world?
You've reached a state of abundance by mastering valuable skills that others need, and you sense it's time to share that knowledge. Yet, you find yourself questioning whether you spent your time wisely and if you could have made different choices.
The Reality
Perhaps you’ve worked your way up and felt motivated to move up the list. There is, however, a far bigger question here, which is ACTUALLY the implied question:
‘Will getting to the next stage make me happier?’
We as humans tend to romanticise our past and glorify future ‘ideal states.’
You might find a way to organize your life that allows you to be happy today while also ensuring financial security for the future. This is the approach of balancing wealth, health, and happiness.
Quiz Mode
Just select your answer, and if it is correct, you’ll get freebies from Untilreturn.
“New Delhi” is the right answer for our previous Quiz. Click to find out.
That’s it for Today’s Newsletter. We’ll come up again with a Powerful Entrepreneurial Journey on Friday (this week) at 8:00 AM.
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Thanks & Regards
Abhilash Prasad