Surplus is quite simply extra money that isn’t already needed to meet one of your foundational financial priorities. And you get to ponder and decide what happens to it without putting yourself in harm’s way.
Another way to think about surplus is that your decisions about whether to do something are not limited by your income. People at this level are typically business owners and invest their money to make it work for them.
At this stage, focus on the following things:
- Duplicate yourself in income sources
- Budget more into investing than in spending
- Fund your investment portfolio
- Pay off your real estate investment debt