My #1 blog post as a small thread:
Read the full post here:
The Non-Linear Approach To Income: A Better Way To View Your Net Worth
Or follow the thread below
https://wlth.ca/blog/non-linear-approach-to-income/
Read the full post here:
The Non-Linear Approach To Income: A Better Way To View Your Net Worth
Or follow the thread below

2/ the traditional model shows a compounding effect of investing, income growth and a heavy sell off in retirement.
Key points:
- never any set backs
- income growth extremely consistent
- impact of investments simple compounding
- not at all close to reality
Key points:
- never any set backs
- income growth extremely consistent
- impact of investments simple compounding
- not at all close to reality
3/ So I developed a more accurate model
Key points:
- early career has low income and assumed debt (struggle)
- mid career has debt and lifestyle inflation and moderate income (settle)
- late stage career has highest accumulation (growth)
- retirement phase (sell) is slower
Key points:
- early career has low income and assumed debt (struggle)
- mid career has debt and lifestyle inflation and moderate income (settle)
- late stage career has highest accumulation (growth)
- retirement phase (sell) is slower
4/ Then I realised this isn't the entrepreneurs journey, nor do people stay in 1 career for a lifetime anymore.
So I developed this final model.
Key points:
- multiple struggle, settle, growth, sell stages
- dips in net worth major changes occur
- reduction in wealth from fees
So I developed this final model.
Key points:
- multiple struggle, settle, growth, sell stages
- dips in net worth major changes occur
- reduction in wealth from fees
5/ and taxes in the sell phase
- growth can occur prior to late career stage
- people change minds, careers and business paths
- structural changes force new cycles
And most importantly...
- growth can occur prior to late career stage
- people change minds, careers and business paths
- structural changes force new cycles
And most importantly...
6/ It allows for change without guilt.
One of the things I hate most about the normal lifecycle chart is that any path that reduces your net worth is bad.
You are allowed to change career paths.
You are allowed to start new businesses.
You are allowed to pay fees during a sale.
One of the things I hate most about the normal lifecycle chart is that any path that reduces your net worth is bad.
You are allowed to change career paths.
You are allowed to start new businesses.
You are allowed to pay fees during a sale.
7/ Does this help your vision?
How do you feel about a model that allows change?
If you find any value in these charts or this thread please retweet and share!
I am open to answering any questions. Please ask below!
How do you feel about a model that allows change?
If you find any value in these charts or this thread please retweet and share!

I am open to answering any questions. Please ask below!
