Line 0 - minimum wage /credit card debt population Line 1 - lower middle class Line 2 - upper middle class Line 3 - wealthy Line 4 - traders with risk management The goal is to increase the slope of your equity. Equity equals income - expenses. Most get a biweekly paycheck. Based on your paycheck, you would be at different slopes. How you invest your savings plays a large role, on how our equity curves factor over time. Some people just rely on compounding which is powerful in itself. And some resort to investing/trading. Without risk management you can easily fall into line 0 or 1. The greater the slope the greater the risk being taken. Some would argue you can only afford to lose a months paycheck for the year. That would set you back 1/12. Some dont have the income to take the risk, and just live breaking even. I think on average the upper middle class plays around with 10,000 loss limits. So if they lose 10,000 on trading over the year, most of the time it wouldnt bother them. Some would argue find the price/time curve in different markets that has the slope increasing at the fastest rate over time. Then switch in and out into different curves to obtain line 4 results or better.