Many Americans dream of being rich, but few know how to get there. That’s where the “wealth ladder” comes in — it’s a step-by-step framework for building financial freedom, one rung at a time.

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Here’s exactly how to climb each of the six levels of the wealth ladder.

At the first level, your net worth is under $10,000. At this stage of your financial life, it’s likely that every monetary decision feels consequential.

“The focus here should be on identifying your most essential costs, managing those and looking to remove all nonessential spending,” said Julie Guntrip, head of financial wellness at Jenius Bank. “In addition, you would want to avoid accumulating high-interest debt, given that repayment could be challenging.”

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When you achieve a net worth between $10,000 and $100,000, you’re now at level two. At this level, everyday expenditures like groceries no longer derail your budget.

“The priority is building a values-based budget, paying down high-interest debt and starting an emergency fund with consistent contributions to a high-yield savings account to take advantage of compound interest,” Guntrip said.

As you reach a net worth between $100,000 and $1 million, it’s assumed you can enjoy dining out without financial anxiety.

“This is a good opportunity to start investing wisely, expanding retirement and other long-term savings, and avoiding lifestyle creep by keeping spending aligned with your values and goals,” Guntrip said.

The “travel freedom” level — achieved by those with a net worth between $1 million and $10 million — refers to the idea that, at this net worth, you could travel on your own terms without added stress.

“Climbing this rung involves optimizing income, maximizing tax-advantaged accounts and diversifying investments,” Guntrip said. “It also involves having a ‘splurge fund’ for fun expenses, like travel, that are above your typical spending and saving budget allocations.”

At level five, you have a net worth between $10 million and $100 million.

“Level five may bring the ability to purchase your ideal home without sacrificing other goals,” Guntrip said. “Of course, depending on where you live in the country, the definition and price tag of an ‘ideal’ home may vary.”

Once you have secured your home — and likely other valuable assets — your focus should be on securing generational wealth.

“This includes protecting your interests and your loved ones through smart estate planning,” Guntrip said.

At the final level, you’ve reached an above-$100-million net worth. This can allow you to make a significant impact on others’ lives.

“This level is about aligning wealth with legacy, whether through community projects, scholarships or supporting meaningful causes,” Guntrip said.

As you climb up the wealth ladder, it’s important to stay true to yourself and what’s important to you.

“No matter your rung, the key is to let your core financial values guide you,” Guntrip said. “Climbing the wealth ladder isn’t just about building net worth — it’s about creating stability, confidence and a life that’s in line with what matters most to you.”

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This article originally appeared on GOBankingRates.com: 6 Steps To Climb the Wealth Ladder and Achieve a Rich Life, According to a Bank Expert