The Hierarchy of Financial Independence

 In Financial-Advisor, Wealth articles

As a financial advisor, I’m very lucky to have people share their goals and dreams with me, often not knowing where they are right now. During the time that I’ve spent helping people, we typically tend to fall in to one of the following four categories:


hierarchy financial independence

hierarchy financial independence



  • Very unsure of where you are currently;
  • Living paycheque to paycheque;
  • No clear understanding of why you find it hard to save for what you would like to achieve;
  • Limited choices with money;


  • Budget in place, know where the inflows and outflows are going;
  • Able to maintain the status quo and staying afloat;
  • Know there are potential clouds on the horizon if something isn’t done; And
  • Have the mindset to change;


  • Clear understanding of what’s working and not working;
  • Saving at least 10% of paycheque each month;
  • Starting to receive and build a passive income;
  • Ready to face any short to medium term challenges due to health/unemployment;
  • Mortgage being paid down more than minimum per month;
  • Have detailed goals, a timeframe and a plan to reach them; And
  • Able to enjoy life without the uncertainty of money worries.


  • Passive income received whether you are working or not;
  • Able to make the choices you want without the concern of cost;
  • Short to medium term worries have no downward effect on your finances; And
  • Freedom to live the life you want and do the things you’ve dreamed of


Financial independence is a journey. You don’t just wake up one day and achieve it, it usually takes strategy, a plan, advice and setbacks along the way. This is all with the exception of winning Lotto’s mega jackpot, but you have better odds of having a lot of extremely random things occur rather than winning the big one!

Just by getting an idea of where you are today, can make so much of a difference in knowing what you can look forward to on the next step forward. Where are you headed?


Disclaimer: The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Synchron Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Mirador Wealth Management, Synchron, nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. Authorised Representatives of Synchron AFS Licence No. 243313

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