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Tony Robbins’ Levels of Financial Freedom


In Tony Robbins’ book, Money: Master the Game, he spoke of five levels of financial freedom that anyone can reach.  The goal is to identify what level you want to reach and then make a definite plan to get there.  But what are the levels and how are they different?  The 5and2Guy has you covered.

Do You Remember Passive Income???

We have talked about passive income before, but you have to know what it is in order to reach Tony’s levels of financial freedom.  Passive income is the cash flow received by a person for work requiring minimal or no effort from them.  They pretty much have a good stream of money coming in each month for doing just about nothing.  Examples of passive income include money from rental properties, royalties, stock market, profits from a business, or other investments that pay you money.  In order to meet any of the levels of financial freedom shown here, you have to have some kind of passive income coming in.  The point is you should never have to work again…unless you want to!!!

Financial Security

Financial security is reached when all your basic living costs are covered by passive income.   Once you reach financial security, you can afford to pay for your house payment, utilities, car, and basic insurance.  If your basic living costs are high, your passive income has to be high.  If your costs are lower, your passive income can be lower.  Do you have to be a millionaire to reach financial security?  NOPE!!!  If your living costs are only $2000 a month and your passive income is $2500 a month, you are financially secure!!!

Financial Vitality

Financial vitality is reached when your passive income covers all your basic living costs, half of your clothing costs, half of your dining and entertainment needs, and half of one luxury item a month.  Imagine that without having to work, all your needs are paid for and half of your luxuries are covered to.  Now we are getting somewhere!!!

Financial Independence

Financial independence is reached when you are totally independent from work.  You simply need your passive income to equal your annual.  You are independent of work now.  If you spend $75,000 a year to live your life, then to be financially independent, your passive income must be at least $75,000 a year.

Financial Freedom

When your investments and passive income provide you with enough money to live the life you desire without ever having to work again, you are considered financially free.  This frees up your time so you can spend your time how you like.  Financial freedom also affords you two or three significant luxuries like a vacation home, mini yacht, or that really expensive car.

Absolute Financial Freedom

Absolute financial freedom is reached when your passive income allows you to do whatever you want, whenever you want, wherever you want, and with whomever you want without ever having to work again.  The only limit is your imagination.  This is the highest level for obvious reasons.  

Final Thoughts

The only thing left to do is figure out where you are and then get started.  If you are not financially secure yet, start there.  Once you attain each level of financial freedom you can start working on the next one.  Tony offers a great phone app called Tony Robbins Money.  This app will help you identify and do the math on all the numbers you need to reach each level.  If you want to start climbing the financial mountain, I suggest you download his phone app and put your numbers in.  You have to have a target if you ever want a chance of hitting it!!!

Money: Master the Game was a great book and really easy to read.  Tony really puts things in simple terms that pretty much anyone can understand.  If you are interested in reading his book, pick it up here:

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