Introduction
Did you know there were 5 levels of money? I’m not talking about types of forms of money. I’m talking about five different levels of financial status.
I think it’s important for every single person to know where they land on the complete Financial Spectrum. Where do you land on the sliding scale between dirt poor and filthy rich?
Traditional Levels
In the United States there are a couple of classes that have been traditionally recognized.
| Financial class | Annual income |
| Poor, near-poor | $32,048 or less |
| Lower to middle class | $32,048 to $53,413 |
| Middle class | $53,413 to $106,827 |
| Upper to middle class | $106,827 to $373,894 |
These traditional Financial classes help us to understand where we are based on our annual income. This is helpful in determining how you fit into your city neighborhood and Community financially.
Although it’s kind of awkward to make relations based on where you stand financially, the truth is many of us try to stay around the group of people who make about the same amount of money as we do.
This can either be a good or bad thing depending on where you are financially. As the saying says, if you want a different result start by changing your circle.
Levels of Money Based On Behaviors
There is another way to classify levels of money. This is based on Behavior. We can all agree that certain money, or the lack thereof, can cause us to behave in certain ways.
Some are good. Other ways are bad. Let’s take a look at the five levels of money from a behavioral standpoint.
Financial poverty
People who are living in financial poverty have come to terms with loss and lack. So much so that it shapes their worldview. The poverty mindset focuses on loss losing and lack.
Because poor people focus so much on what they lose they develop an identity around having lost things. We call this the poverty mindset.
It’s where you think only about what you can get because everything else has been taken away. Because of this poor people approach other individuals as well-off community members who have a responsibility to take care of the poor class.
While this is obviously not true, this Behavior shows up in the entitlement that the poor have when asking people to share the wealth.
Financial survival
People who are beneath the poverty line usually have a survival mentality. This has to do with the mind being so inundated by problems and crisis from every angle. This person can only think about the needs right in front of them. They don’t have the time to think about what they would like to do or have tomorrow.
This hope, however, As those struggling towards Financial survival are just below Breakeven. This is still a stressful place to live, however with a bit of creativity many Americans fill this Gap as they make their way towards the next level.
Financial maintenance
This is the place where you are doing the thing. Many people feel the liberty and freedom that comes with just making it financially. Obviously we would all want to have more money than we lose.
This is the goal and this is the dream. On the other hand, when you are able to see any money after your expenses, it’s better than ending a paycheck in debt.
When You Reach this point of financial maintenance, a weight is lifted. Not completely removed because you are still one emergency away from being wiped out.
In financial maintenance you are obviously taking more responsibility for the financial decisions you are making.
Discretionary
This is where it starts to get really good. The Discretionary level is where you begin to tell your money where to go. This is very important, because it means that instead of life determining where your money goes you decide where you want your money to go based on your values visions and dreams.
How about that? Yes, this is a right that you are entitled to. If you’ve just made it to this level welcome to the club. I pray that you stay here and go beyond. Use this money to build your wealth by Saving and investing.
Get To Level 5 Faster!
Disposables
This level of money is called disposables because if you do not have a larger than Life vision than you will most likely be throwing money at different things. You reached this level when you have more money than you know what to do with.
It may seem like a great problem to have. However, starting my blog www.profit2prosper.com has helped me to see that we are made for more than just making money.
We are placed on this Earth to make a real impact. I believe that wealth is a tool that you use to make a difference, first in your future family’s, and then extend that to the world.
Conclusion
Regardless of where you are in this journey to Financial Freedom and wealth, you owe it to yourself, your family, and your future to keep moving forward. It doesn’t matter where you start out.
The only thing that matters is are you moving forward in the right direction?
