Financial Stage 4: Overflowing

Are you in Financial 4: Overflowing?

You are in Financial Stage 4, Overflowing, once you have paid off all of your debts, you are on track to reach all of your investing goals, you are increasing your net worth regularly, and you are giving generously.  This is the stage where you really make a huge impact to the world around you financially.  In this stage you are being extremely generous and your wealth builds wealth.


During this stage you are going to quickly realize in a whole new way that your time is limited.  You will most likely be seeking ways for your income to grow without your time being what produces the incremental income.  This is when you are really beginning to cultivate the investor mindset, which is when you focus on your wealth building wealth for you.  This will cause you to take a hard look at new investment opportunities such as owning new businesses, especially the types that produce passive income.  Click here to read more on passive income and also on how passive income is imperative if you want to retire.  The compounding effect really makes an impact to your financial world now.

You can also start to explore more complex types of investments because you have the ability to take on more risks, you have more discretionary income, and you are able to buy larger investments with cash.  For example, you may decide you want to now invest in rental real estate, so be sure to read the series of pages detailing how to appropriately invest in rental real estate.


At this stage you likely do not ever use debt.  Once you’re in this stage I’m not going to debate that much with you if you choose otherwise as long as your net worth is notably positive and it stays that way.  Most likely though, you buy things in cash and you do not lease things.  When you buy a big ticket item (e.g., a car, recreational vehicle, second home, vacation, etc.) it is paid for with cash that you have in savings.  Or, you delay buying it until you can pay in cash.  You most likely do not use credit cards because you are annoyed with having one extra thing to track, you realize your time is better spent investing, volunteering, working, spending time with family/friends, etc.  You are looking to simplify your life and cash is simple so that is your preference.


You are most likely choosing to be a generous person in this stage and you give to organizations and people.  You do not expect anything in return except a positive impact from your generosity.  You know that money is not finite and because you give it does not mean you just lost a dollar.  When you see needs, you are motivated to help meet those needs but you will not be manipulated into giving.  You are a cheerful giver and find joy in building generosity into your financial plan.

When do you finish Stage 4?

Stage 4 is never complete.  Your biggest concern should be not moving back into the earlier stages.  This stage is infinite because generosity is infinite, it knows no bounds.  You are comfortable building wealth and realize It often takes wealth to build buildings, cure diseases, explore new technology, start new businesses, and financially impact others around the globe.  You can never become wealthy enough to solve every ailment, concern, or issue in this world.  However, that should be your goal.  So get to this stage as soon as you choose to and enjoy the fruits of your labor while you allow your generosity to truly make a profound impact!

One thought on “Financial Stage 4: Overflowing

  1. Pingback: The Four Financial Stages of Your Life – Mile High Money Guy

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