Frankly, there are many ways to measure where you are on your journey to financial independence. There could be a technical way to measure it based on how much money you actually have in investments or by your net worth. Another way is to measure it based on your habits and mindset, and it is equally important to have the right to financial habits and mindset to having long-term financial success.
Your financial journey can be categorized into three zones:
The “Just Starting” Zone
The most important step is to acknowledge your current financial state and come to terms with how you got there. This is where you may experience the most drastic change. You will understand that the way you once thought about and handled money was not ideal and started turning your financial situation around.
The “On Your Way” Zone
Now you will have a better sense of what you want and where you want to be. Now is when you need to really start putting in the work to make sure that these newfound financial habits stick. In this stage, there will be many small wins, but there may also be setbacks as you are still trying to reprogram your emotional and mental spending habits.
The “Almost There" Zone
The amount of time you can spend in each section can vary. Sometimes this zone can be the longest since you should have adapted strong and consistent financial habits by then but may not have accumulated the amount of money you need to be considered financially independent.
So, where do you think you are on your financial journey?
Written by Giselle, a second-year student trying to embark on this journey to financial freedom