Stage 4 - Financial Security
Passive Cash Flow > Survival Expenses
Stage 4 is when your Passive Cash Flow is greater than Survival Expenses.
Survival Expenses include:
- shelter,
- food,
- water,
- insurance
This threshold is the first point where you have complete mathematical control over your time.
Significance
This is the most important threshold along your wealth building journey. Having enough Passive Cash Flow to cover Survival Expenses is a significant accomplishment!
You won’t stay at Stage 4 forever, however you have significantly more options than most people.
Alternate names
Increase your Savings Rate