An Honest Guide to Navigating Changing Financial Seasons
Vincent Heys
At Wealthstack, we spend a lot of time thinking about financial wellness – not just the numbers, but the values and real-life circumstances behind every family’s decisions. Because life isn’t linear, our “money-life” isn’t either. And most of us will find ourselves moving up and down through different stages over the years. That’s why I’m bringing you this honest guide to navigating changing financial seasons.
As a husband and father, actuary, business owner and someone who has moved across the world from South Africa to Canada, I have lived through each of these levels myself, sometimes more than once! In this video I break down something I am truly passionate about and that I learned from Ron Blue Institute and Kingdom Advisors. I believe this is foundational to long-term financial stability: the five levels of sequential investing.
Whether you’re just starting out, rebuilding, or planning far beyond your own lifetime, understanding these levels helps you make better choices with confidence. And it helps you give yourself a bit of grace along the way.
Let’s walk through each stage.
Level 1: Struggling – When the Basics Feel Heavy
Most people have been here at some point.
In this stage, income is barely enough to break even – and sometimes it’s not enough at all. The danger here is high-interest credit, especially credit cards and lines of credit. Once interest climbs past 20%, it becomes incredibly hard to escape the debt cycle.
If you’re in this stage, know that you’re not alone! Here’s a few tips I believe will help:
- Avoid using credit as far as possible. Easier said than done, but worth the effort. Make every effort to live within your means.
- Focus on stabilizing cash flow – know where your money is going, how much is coming in and where you could save a few extra dollars.
- Keep things simple and survival focused. It’s crucial not to compare yourself to others or grow discontented. Recognize this is a stage and with some time and hard work, you’ll be able to stretch into more if you stay focused.
It’s tough, but it’s temporary – and almost everyone (with a good story) has walked this road.
Level 2: Surviving – Meeting Your Needs, Building Your Buffer
This is where your income finally covers your expenses without relying on debt. The priority now should be establishing an emergency fund with the equivalent of 3–6 months’ income, especially the income of the family’s main earner.
This isn’t about investment returns. It’s about “sleep-at-night money” – the real kind of financial wellness. Don’t run ahead of yourself, remember that life takes twists and turns, and building your immediate savings protects you from sliding back to phase 1.
Here’s a few tips when you’re in the Surviving phase:
- Keep it liquid – don’t choose a long-term investment account when building your emergency fund. Choose an immediate access savings or cheque account.
- Don’t over-engineer it – Just put the money aside, stay consistent and be patient.
- Focus on accessibility rather than growth – while a good interest rate is enticing, at this stage of life, you want to get that cushion safely underneath you. Growth will come.
This buffer protects you from job loss, medical procedures, or any unexpected life event (twists and turns, remember).
Level 3: Stable – Planning Beyond the Month-to-Month
In this phase, life feels a whole lot more comfortable. Your foundation is set, and you can start planning for medium-term goals such as:
- Furniture or home setup
- A vehicle
- A future home
- Other lifestyle upgrades
Coming off the back of level 1 or 2, this can feel like new-found freedom! The chance to expand, show off, and dream big. And it is. This is your chance to start broadening your horizons, maybe even checking out the housing market. Enjoy the joy if it but remember that there’s more ahead of you and true financial wellness is financial freedom. So, here’s a few key principles that matter in this stage:
- Be cautious with debt.
A reliable second-hand vehicle is often healthier for your long-term wealth than a shiny new model with a big repayment attached. - Avoid maxing out your mortgage.
Rather build a strategy that can withstand life’sups and downs – choose the home that is well within your budget, not teetering on the edge of it. If you do this, you’ll have more margin to add $50 or $100 a month to your mortgage repayment, which could reduce your 25-year payment plan to just 15 years. Saving you interest by the bucket load and bringing you closer to your financial goals.
Level 4: Secure – Preparing for Long-Term Goals
This is where most families WANT to be. That idyllic stage where you have enough stability to plan for the future you want, not just the life you’re managing today. Whether that’s education savings, retirement planning or long-term investing… you’re able to see beyond the horizon without causing a wobble in your bank account.
At this stage, the aim is not “financial independence from others” – it’s ensuring you won’t be a burden on anyone later, and that you have the freedom to give back to your community when you choose.
This is also where the Wealthstack Dashboard becomes incredibly valuable. Our goal-based planning tools show you exactly:
- how much you need for your child’s education
- what your retirement numbers (should) look like
- whether you’re on track or need to adjust course in order to reach those dreams your stability has allowed you to dream.
My encouragement in this stage of life is to get sound advice and set up the systems that will see your wealth grow and your financial security strengthen. Although life can throw a curve ball, having the equipment to catch it makes all the difference. A Wealthstack Dashboard allows you to turf the multiple spreadsheets and keep all your accounts (from multiple countries) and goals and key documents in one secure place. Plus, with our service packages you get access to Wealthstack Experts that are independent and fully committed to your financial wellness.
Level 5: Surplus – Thinking Beyond Yourself
Few families reach this stage, but it’s a meaningful one (and one worth striving towards).
Here, you have more than enough for retirement and long-term needs – ideally at least 20% above your required number. With your future secure, your investments now become a way to shape the legacy you want to leave.
This might look like:
- Donor-advised funds
- Supporting causes you care about
- Venture capital or second businesses
- Higher-risk investments
- Hedge funds or alternative assets
It’s important to remember that as wealth grows, complexity grows. This stage often needs thoughtful structures such as holding companies or operating companies to manage tax efficiently and sustainably. Remember those tools you collected in your Secure Phase? They’ll come in handy here.
The Journey Isn’t Linear – And That’s Okay
A final reminder on the levels of investing and financial wellness you might journey through is this…
You may go from Level 2 to Level 3… and back to Level 2 again (humph).
Or you may reach Level 4 (yay) and slide back into Level 3 (stay calm).
Wherever your path takes you and your family always remember that life changes and navigating changing financial seasons is normal. Family obligations shift. Unexpected expenses happen. And through all of it, there’s no value in comparing your stage to someone else’s.
Three simple truths can make the ever-changing landscape of financial wellness easier:
- Don’t compare yourself to others – it doesn’t do your mental or financial health any good.
- Be thankful for what you have – this one has immense mental and financial benefits!
- Stay content in the season you’re in – be patient, hold steady, keep focused.
Lastly, remember these levels aren’t labels. They’re simply a roadmap to help you understand your next best step. And if you feel overwhelmed, don’t do it alone. Get the help you need for whatever stage of life you’re in.
If you’d like help figuring out where you are and how to move forward confidently, our team of Wealthstack Experts are here to guide you.
