Part of being financially alert is understanding where you are, setting goals, and working towards achieving them. This could be a simple as tracking your spending, creating a monthly budget, and executing. But, what’s the motivation to do this? How financially conscious are you?
After digging for many years, I started to uncover patterns of thought based upon other peoples’ stories and my own experiences. Here’s what I found. I call it The 6 Stages of Financial Consciousness.
To take the free online assessment, click here.
It’s important to understand where you’re at, so you can determine where you’re going. It is also helpful to know where you’ve come from so you can help others ascend too.
When I was in my early teens and twenties I was in The Awakening. It was a very exciting time exploring all the infinite possibilities. I didn’t have a lot of money to invest with, so I invested my free time educating myself. I read voraciously most days and continuously checked out new books at the library. (BTW, what a great public institution – libraries give away free knowledge to anyone who wants it! One of my favorite philanthropies to this day.)
It wasn’t until I landed my first salaried job that I transitioned to The Shift, but once I had a steady paycheck I started taking action. I maxed out my 401k, automated a weekly savings plan, and automated another investment plan through Sharebuilder. These assets have grown steadily over the years (the sooner you start, the better!).
Which stage are you in? Are you ready to move to the next one? Why, or why not?
My extended goal is to help you find your personal path to financial independence, and to enjoy the entire journey along the way.
More about me
- Finding FI Interview #44: Flying Free with Captain FI - July 24, 2023
- 8 Things About Money that I Wish I Knew In College - May 17, 2023
- It Pays to Pay Attention: How Diligence Can Save and Earn You Money - April 24, 2023
9 Comments on “The 6 Stages of Financial Consciousness”
i am in 3-4 and i need to change my life
Interesting tool. I believe I am transitioning from 5 to 6 and would be in 6 for sure within two years, given the passive income streams we are creating.
After we have built our house and finances are calmer, we should be able to put financial growth on autopilot and let our net worth grow itself.
HF, sounds like your activity is paying off huge dividends right now! Nothing wrong with that. 🙂 Enjoy the journey. You’re at a fun stage for sure.
This is totally spot on, I think I am transitioning between 4-5 which is exactly where blogs like these are so motivating.
The one area I am most concerned with right now is creating habits with lower expenses. What part of the process did you find hardest for your own path?
Hey TTR, thanks for sharing a little about your journey.
For me, I found the toughest transition from The Shift (F3) to The Battle (F4). In the beginning, I was taking a lot of action, but not seeing a lot of results right away. In hindsight, it’s so critical to get through this phase and not give up. A little faith is required, but well worth it on the other side!
Really nice way to put it. I think I’m at 6 already, now it’s just the patience to save up and retire!
XYZ, glad to hear you’ve already embraced a spirit of giving back. Cheers! 🙂
Awesome resource here Michael! I’m impressed by what you’ve done and I’d say I’m in between stage 3 and 4..
Enjoying your posts & I’ll keep an eye on your site for sure 🙂
Jef, I’m impressed at your young age! Keep up the momentum and you’ll be well on your way to level 6. 🙂