Core Insights - Financial freedom is a journey defined by seven clear stages, as outlined by finance expert Ramit Sethi, emphasizing that it requires time and effort to achieve [1][2] Stage Summaries - **Stage 1: Paycheck to Paycheck** Individuals at this stage lack sufficient income to cover expenses, often leading to high-interest debt. The priority is to increase earnings through skill development, additional jobs, or salary negotiations [3] - **Stage 2: The Hamster Wheel** At this level, individuals can pay bills but have little left over, often facing high-interest debt. The focus should be on building an emergency fund and reducing debt, with recommendations to automate savings and payments [4][5] - **Stage 3: Room to Breathe** Individuals have enough income to cover expenses with some surplus. This stage is ideal for establishing systems for financial freedom and creating a conscious spending plan that balances expenses, savings, and investments [6] - **Stage 4: Freedom and Security** At this stage, individuals feel secure about their finances and are less worried about unexpected financial issues. The goal is to maintain a budget where 50% to 60% is allocated for fixed costs, 5% to 10% for investments, 5% to 10% for savings, and 20% to 35% for spending [7][8]