One of the things no one likes to talk about when discussing their path toward financial freedom is that it is never linear.
Most people would like to think that once they have moved from underwater to self sufficiency or financial independence to abundant wealth that they will never find themselves back in one of the categories they have left. But those same people generally find that their progress looks more like the stock market chart- up, down, up, down. Some moves may be little, some may be bigger, but they are there.
There are a few things to keep in mind as this is happening:
1. Watch for the little holes in your financial boat.
Whether you have a kayak or a super yacht, if you can fix the little holes as they occur, you will not find yourself in a place where all of your energy is being spent keeping your boat afloat. Little holes can look like your credit card balance going up or not being able to pay your entire credit card bill each month. It could also look like you cutting back on how much you put towards savings or investing because you are spending more in one of your other accounts (usually “play” is the culprit).
2. Keep learning.
What got you from A to B will not get you to C or D. You have to keep learning and growing so you know what to do when you reach that next level. A lack of education and a lower level mindset are the two biggest reasons why people who find themselves in a better financial situation quickly find themselves back where they started (or even worse off). This learning also pertains to your heirs. If you do not teach them how to manage their finances- and to teach their heirs- they will quickly undo all that you have done. This is why generational wealth tends to be fleeting. Most of the wealthiest families find themselves nothing more than a footnote in history within four generations.
3. Hold yourself accountable, but do not be too hard on yourself.
Your financial journey will be filled with success and learning experiences. When you make a mistake recognize it, learn from it, and then do better. As long as you do not give up you are not a failure. Keep in mind you may make the same mistake a few times before you learn the lesson. Be kind to yourself while you are figuring out. Most of us were never taught how to get to where we want to go financially, let alone what it will be like once we get there.