“Solid” means that you are able to breathe financially. You have enough to pay your bills, take a one-week vacation without taking on debt, put money into your 401(k), and give charitable contributions to your church and any other organizations you support. Basically, you have a good foundation for your longer-term financial goals and can meet most of the short-term ones without too much effort.

Here is the next reality check. There are many people who believe they are solid when under the covers they are just a ‘strong steady’. This happens when you have not factored your long-term financial goals, such as college costs and retirement, into your overall plan. It looks as if you are meeting your monthly budget quite well, but this is an illusion, because you are not saving at a high-enough rate to avoid a panic later on.

At this stage, focus on the following things:

  • Enlist help with managing your sources of income
  • Create more passive income
  • Create a debt elimination schedule
  • Own your home and build a real estate portfolio
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