Financial independence is not a vague concept—it’s a clearly defined and measurable goal. In fact, according to author and financial expert Grant Sabatier, there are seven distinct levels of wealth, each representing a key milestone on your journey to financial freedom.

And here’s the real kicker: even after you reach “independence,” there are still two levels of wealth beyond that. Knowing where you currently stand helps you map out actionable steps to move forward. So let’s break down the journey, starting with the very first level.

Level 1: Dependence — Living on Parents’ Support

If you’re in the dependence stage, it means you’re relying either partially or entirely on someone else for your financial needs. This could be your parents, guardians, or even a partner.

This category typically includes:

• Children and teenagers
• College students without steady income
• Recent graduates without a full-time job
• Anyone still dependent on family for basic expenses

In India, this is quite common. A report by HSBC published on moneycontrol website read that nearly 65% of Indian parents continue to financially support their adult children well into their 20s or even 30s—helping with rent, education, or marriage expenses.

So, if your parents are paying your mobile bills, rent in metro cities, or even funding your postgraduate degree, you’re still considered financially dependent.

This phase ends only when you start covering your own expenses consistently. Once that happens, you move to the next level: Survival.

Level 2: Survival — Getting Your Financial Bearings

Once you’re out of dependence and earning your own income, you step into the Survival stage. Here, you’re covering bills and basic needs—but just barely. You’re not drowning in debt, but you’re not building real savings either.

In fact, a recent Business Today survey found that 57% of Indian millennials live paycheck to paycheck. That means the majority are stuck at this very level.

For example, I know someone in Bangalore who earns about ₹8 lakh per year. On paper, that looks solid. But with rent (₹20,000/month), EMIs for a two-wheeler, groceries, Swiggy/Zomato bills, lifestyle upgrade and weekend outings, he manages to save only ₹3,000–₹5,000 a month. A single medical emergency could wipe out his savings.

Why do so many get stuck here? Because rising costs—housing in metros, lifestyle spending, EMIs—eat up most of the income. At this stage, upskilling and finding better-paying opportunities are critical, but equally important is learning to control spending.

Exercise: Review your last 3 months’ UPI, debit, and credit card transactions. Categorize expenses into rent, food delivery, subscriptions, travel, shopping. Just this awareness will help you see where money leaks happen.

With focus, you can progress into the next stage: Stability.

Level 3: Stability — Building a Foundation for the Future

At this level, you finally breathe a little easier. You’re not just surviving—you’re starting to build.

What stability looks like in India:

1. Emergency Fund: You’ve saved 3–6 months of expenses (say ₹3–6 lakh if your monthly spend is ₹50,000).
2. Not Living Paycheck to Paycheck: You have surplus left after bills.
3. Long-Term Planning Begins: Maybe you’ve opened a PPF account, started a SIP in mutual funds, or begun saving for a home down payment.

Example: If your annual expenses are ₹6 lakh (~₹50,000/month), financial stability means:

• Emergency fund of ₹2–4 lakh in a savings or liquid fund.
• ₹50,000–₹1 lakh sitting in your account for monthly use.
• Starting SIPs of ₹10,000–₹15,000/month.

At this stage, financial stress reduces, and you start planning 6 months ahead instead of just “next week.”

Level 4: Financial Security — The Turning Point

This is where money stops controlling you. Bills are no longer a stress point—you’re comfortably handling expenses and actively building wealth.

What financial security looks like in India:

• Even if you lose your job for 6–12 months, your savings and investments keep you afloat.
• You’re allocating a substantial share of your income toward assets and consistently growing your portfolio.
• Your income significantly outpaces your expenses.
• You’ve started planning for children’s education, buying property, or early retirement.

Important: It’s not about income alone. Many Indians earning ₹25–30 lakh per year are still stuck in “Survival” because of high EMIs, luxury spending, or poor money management. True security comes from living below your means and having strong buffers.

Most Indians hit this stage in their mid-30s to 40s when career growth stabilizes and family planning becomes clear.

Level 5: Financial Independence — Work Becomes Optional

At this stage, your investments cover your lifestyle. You no longer depend on a salary to survive—your portfolio generates enough income.

In the Indian context, this usually means following the 25x Rule i.e your investment corpus is 25 times of your annual expenses.

For Example:

• If your annual expenses are ₹12 lakh (~₹1 lakh/month), you’d need an investment corpus of ₹3 crore.
• With a safe withdrawal rate of 4%, that gives you ₹12 lakh per year to live on.

Debt is minimal or gone (home loan repaid, no car EMIs), and life goals like children’s education are already funded.

Here, work is a choice, not a necessity. Some may continue working out of passion—running a startup, writing, teaching, or consulting. Others may retire early and focus on family, travel, or hobbies.

Level 6: Financial Freedom — Life on Your Terms

This is the stage most Indians dream about—where lifestyle upgrades, luxury, and choice take center stage.

Financial Freedom in India looks like:

• Multiple income streams (mutual fund dividends, rental income, stocks, businesses).
• Regular international travel.
• The ability to say “no” to work you don’t enjoy.

This is where “FU Money” kicks in. You can quit your job, walk away from toxic clients, or spend on experiences without thinking twice. Whether it’s a luxury car, a holiday in Europe, or supporting a cause you love—you’re free to do it.

At this stage, money is no longer about affordability—it’s about alignment with your values and desires.

Level 7: Financial Abundance — Wealth Without Limits

This is the rarest stage, achieved by very few. It’s when your wealth goes far beyond your needs, and you start focusing on legacy and impact.

Examples:

• Founders who sold unicorn startups.
• Business tycoons like Ratan Tata or Mukesh Ambani.
• Generational wealth creators who establish charitable trusts and foundations.

At this level, you’re not asking “Can I afford this?” but “What kind of change can I create in society?”

You may own multiple properties across India and abroad, invest in ambitious projects (clean energy, space tech), or create philanthropic institutions. Money becomes the least interesting thing—you’re driven by purpose and legacy.

A Word to Everyone on the Journey

Most people will never reach Level 7, and that’s okay. Even reaching Stability or Security is a huge achievement. Every stage—from Survival to Freedom—has its own lessons and rewards.

The key takeaway is wealth is not just about earning more—it’s about managing better, building steadily, and aligning money with your life goals.

So wherever you are—keep moving forward. Your version of abundance may look different, but that’s what makes it meaningful.

FAQs on The 7 Levels of Wealth

1. What are the 7 levels of wealth?
The 7 levels are: Dependence, Survival, Stability, Financial Security, Financial Independence, Financial Freedom, and Financial Abundance. Each stage reflects how much control you have over your money and lifestyle.

2. How can I know which wealth stage I am in?
Ask yourself: Do you depend on parents? Are you living paycheck-to-paycheck? Do you have an emergency fund? Or are your investments covering your expenses? Your answers will tell you where you stand.

3. What is the 25x Rule in India?
The 25x Rule means your total investments should be at least 25 times your annual expenses. For example, if you spend ₹12 lakh a year, you’ll need a corpus of about ₹3 crore to be financially independent.

4. What is the difference between financial security and financial independence?

• Financial security means you have a buffer—enough savings and investments to manage emergencies and short-term goals.
• Financial independence means you don’t need a salary; your investments generate enough income to cover your lifestyle.

5. Is financial freedom possible in India?
Yes, many Indians have achieved it. It requires smart planning: high savings rate, disciplined investing (mutual funds, equity, real estate), and controlling lifestyle inflation.

6. Do I need to be rich to start moving up the levels?
No. Even small consistent savings can move you from survival to stability. The key is starting early and investing regularly, even if it’s just ₹5,000 a month.

7. How long does it take to reach financial independence?
It depends on your income, savings rate, and investments. For some, it may take 15–20 years; for others, faster if they save aggressively and earn higher returns.

8. Can I reach financial abundance in India?
Very few people reach that stage—it usually applies to ultra-rich entrepreneurs or business families. But reaching stability, security, or independence is achievable for most middle-class Indians.