Breathing Room Level in Financial Freedom

[Suba]

Breathing room is the third level of financial freedom, where someone is able to set aside a portion of their income (not measured by income) for savings, emergency fund investments, and even retirement planning. At this stage, someone who has reached breathing room rarely gets into personal debt because their income will always exceed their expenses, so at this stage, someone has begun to prepare for their future.

There are many obstacles at the breathing room level, such as the desire to appear more dignified or achieve greater prestige, which, if uncontrolled, can lead to increased spending.

 

[gwolf666]

El margen de maniobra en la libertad financiera es cuando una persona puede ahorrar e invertir parte de sus ingresos porque estos superan sus gastos, evitando al mismo tiempo endeudarse. Sin embargo, el deseo de aparentar mayor estatus puede dificultar mantener un buen control del gasto en esta etapa.

 

[Augusta]

Yes people always want to feel more acceptable and dignified and this used to lead to more spending

 

[Fire&Rain]

I’d say the breathing room level is where financial habits matter most. You’ve got enough income to save and invest, but also enough to make mistakes if you’re not careful. If someone keeps their focus on building stability, like retirement funds and an emergency account, this stage can push them toward long-term independence instead of slipping back into debt.