Technology has undoubtedly transformed our lives at an unfathomable pace, much faster than previous generations probably would have imagined. And yet, it can still be difficult to conceptualize the boom in technological advancements that most of us have experienced in our time in terms of exponential growth. Even if we forgot the power of compound returns that we learned in school though, The COVID-19 pandemic is a stark reminder of how rapidly an infectious disease can spread as well. 
Flattening the curve will forever be ingrained in our brains.
Going back to our rudimentary math days isn’t only beneficial during a health crisis. The concept of exponential growth is something we can apply towards our long-term wealth strategy as well. Once you start to build momentum, your net worth has the potential to grow rapidly as well if you methodically manage your capital. The roadblock to this snowball effect though is oftentimes our present circumstances. We see raises or bonuses as a means of increasing our cost of living. We defer savings and investments because we think we have time to make up for it later. Or, as Ray Kurzweil pointed out, perhaps we look at the potential growth of our assets as more linear. When the rewards for patience don’t feel as high, spending the money now can be more tempting than saving it for tomorrow. Now that we’re up close and personal with the “S-curve” though due to the COVID-19 pandemic, we can harness this knowledge to our advantage and reset our long-term financial plan. While we’re flattening the curve at home, let’s be sure we’re not flattening the curve on our net worth generation as well. Using the S-Curve as Your Financial Roadmap
Have you ever considered why retirement plans are invested in the market versus a savings account? It’s because the opportunities for higher growth are through long-term market investments. A typical target date fund will focus on higher risk, higher growth investments early on in your plan and will then rebalance towards lower risk, lower return assets as you age.
We can apply this approach not only to our retirement plan but throughout our adult life as well. Since we know that happiness plateaus after a certain income level, building long-term wealth is not necessarily to get super-rich, but rather to build a sustainable support system that serves you both in the good and bad times. The “S-curve” is a great way to conceptualize one type of roadmap towards financial sustainability over your lifetime, as shown below. I’ve broken this progression down into three key phases - the startup phase, the opportunity zone, and the capital preservation phase. 
Startup Phase
During the startup phase, you are running on thin (or possibly negative) margins. Most graduates entering their professional career begin in the startup phase, living on an entry-level salary with minimal funds leftover for savings. Many people never leave this state though because their cost of living increases at the same rate as their salary or because of unfortunate setbacks.
This “cash-in, cash-out” approach is the most vulnerable phase and one you want to move on from as soon as possible. During economic downturns or unforeseen events, there are minimal safety nets if you lose your cash flow. Your goals during this time should be to:
Opportunity Zone
The opportunity zone is where you want to focus on growing your assets and build momentum through exponential returns. By this time, you’ve built up an emergency fund, set aside or used some savings for shorter-term milestones (such as a wedding or house) and can comfortably cover your cost of living and debt obligations. Once you’ve got your bases covered, it’s time to use your extra capital for high-growth opportunities. Even if they come with more risk, you have time to recover from any short term blows.
This is a great time to invest in growth stocks and alternative investments, take that promotion, or even join that start-up promising sky-high valuations. Your goals during this time should be to:
Capital Preservation
At some point in time you will have built a nest egg large enough to accommodate the majority of, if not all, your needs through passive income from conservative investment returns. You’ve worked hard to build your capital and you no longer want to risk losing what you have.
For most people, this time frame is retirement, though many savvy investors have found ways to build passive income streams much earlier. Once you've reached this stage, you can sit back and relax. You've made it! You are now no longer dependent on a paycheck to survive. Enjoy this time and focus on the things that give you true meaning and purpose. Your goals during this time should be to:
Is this realistic?
OK, let’s talk real life now. Chances are your net worth and cost of living are not going to follow a nice smooth curve over time. Recessions can quickly set back individuals living paycheck to paycheck. A mortgage can result in a negative net worth figure for a period of time, even if you can comfortably cover the monthly bill. Unfortunate or unexpected events may mean you have to rebuild your capital again. The key is to find ways to get back on track if you’re deviating from your intended path.
The truth is that financial sustainability looks a little bit different for everyone and is difficult to measure or compare. There is no magic number, formula, or life path that gets you to ultimate freedom. What you want to consider is how you are getting the cash flow to live the lifestyle you want and if the means of getting that cash flow is serving you. Many people earn great paychecks but are disengaged in their careers. Others may face low job security due to the nature of their industry. Some may want to take career breaks or retire early. If you find yourself in these situations, building a nest egg to provide supplemental or passive income through the strategies above is one way to bridge the gaps. Focus on the Big Picture
I hope this visual gives you one way of creating a financial strategy towards building long-term sustainability. Some may take it more slow and steady while others will take more drastic measures to jump start their path to financial freedom. Whatever approach you decide to take, your road to financial sustainability is already looking little brighter.
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