As with many other things in life, there is often more to an idea than just a simple yes-or-no decision, a fail-or-succeed situation. The truth is that you aren't just financially independent or not, whether you have it or not. Actually, there are a variety of financial stages that one can pass through.
The eight most frequently recognized stages-from financial dependency to financial independence and well beyond-are listed below.
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1. Financial dependence
Dependence is, of course, where it all begins. Everybody who is born into this world depends entirely on other people, thus having relatives or caregivers who will assist us by paying for our house, food, and clothing is crucial. Whenever we start earning our own money and take on financial responsibility, we begin to gradually move away from this stage, even though it is a gradual change.

2. Financial solvency
When you reach the solvency level, you are able to take care of your own financial obligations and bills. You may now take care of your monthly financial obligations without anybody else's assistance. Yet, you can be in debt due to a mortgage, student loan, or even credit card debt.

3. Financial stability
If you've managed to save some savings and emergency funds that will support you in the event that you encounter unforeseen terrible financial circumstances, you reach the stability stage. If something happens, having that emergency fund will prevent you from slipping backwards on the path to financial freedom. It gives you a cushion that enables you to recover even if life deals you an unanticipated hand.

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