The Levels of Financial Freedom

Financial Protection



Absolute freedom

1 Financial Protection

  • The Financial Protection covers your minimum cost of living (food, rent, health insurance, transport, information e.g. € 1,500) for 3-6 months, depending on your well-being = € 4,500-9,000
  • Investment type: immediately available, cash, checking account, overnight money,
  • This money shall never be touched, the best thing is, give it to a friend, so that you need to ask someone to release it – in an urgent emergency only.

The goal of Financial Protection:

This solves 95% of all financial problems!

2 Financial Security

  • Pays minimum living expenses from the interest
  • Example calculation: 120 * you monthly living expenses of 1,500 € = 180,000 € (= 20 to 40 times of your financial protection)
  • Investment style: relatively safe long-term investments, ETFs with an average long-term profit expectation of 8% per year

Goal: If all earnings break away, you can survive on it maintaining a frugal lifestyle.

3 Financial freedom

  • Pay your dreams from the interest
  • For example 120 * of the monthly costs of a good lifestyle for € 3,000 a month = € 360,000 (= 40 to 80 times of your financial protection)
  • Investment style: diversified, relatively secure long-term investments, ETFs with a profit expectation of 8-12% per year. Only the profits that go beyond your private withdrawal are invested in assets with higher profit expectations (and risk) of 12-15% per year.

Goal: You work because you chose too, not because you have too. If all other income breaks away, you can live comfortably on a high standard on the interest of your assets, without touching the substance of your assets.

4 Absolute Financial Freedom

  • Pay your utopian dreams from the interest
  • Example: 80 * the monthly costs of your good dream life for € 15,000 a month = € 12,000,000 (= 300 to 600 times of your financial protection)
  • Investment form: Investments with higher profit expectations of 15-20% per year and only from their profits short-term transactions with an even higher chance of over 20%. In return, you can get over the associated risk.

Goal: You can live an extravagant life in pure luxury on less than the interest of your assets, without touching the substance. So you are free to contribute substantially for charity.

What does it take?

Only after the money for financial protection is put aside, what is leftover gets saved for financial security. And only when this is achieved, additional money is used to save for freedom. Finally, what is leftover now, gets invested for absolute freedom.

How to achieve your financial protection and beyond?


This works well for a short time, but discipline alone always fails in the long run.

You need pain and pleasure!

With a monthly overview of your assets and their growth, you can get the fun you need. If things go wrong, you have to make painful swabs somewhere and commit yourself to them. Have someone else watch over you, who has the authority to “torture you”. And chose someone who is not a friend, rather a coach or mentor. Because friends are willing to let you get away without discipline, just to maintain your friendship.


Are you feeling bad if collecting money beyond your financial protection?

This is a common problem, what sabotages your growth! Noone ever got enlightened when he had to fight for his daily survival. Living security or even freedom gives you all the time and lets you focus on your spiritual development.

The solution is so simple

Make it a habit to contribute a part of your income to charity. Right from the beginning of your journey to financial security. It is not about the amount (for the effect it does to you – it makes of cause a difference to the organization you are donating for). It is to establish a habit to show your gratitude for it. Donate a certain percentage like 1, 2, 5, of 10% of your income, right after you got your paycheck! If you are donating, you feel good about the money you save for your financial security and far, far, far beyond!

Like Heat Turns Ice Into Water,
Gratitude Turns Fear Into Abundance!

Vital and happy regards
Klaus Forster

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