Considering having enough Money, what do you think of?
Never worry about money again? Freedom to change careers? take a well-deserved vacationDo you want to move to a scenic spot? Finally, do you adjust your lifestyle so that work doesn’t have to come first?
All of these sound like dream scenarios, but how do we turn these hypotheses into reality?
The trick is to define “enough” as it fits your money and lifestyle goals. So how can we determine how many are enough to give us the freedom to live the lives we want now and in the future?
Clear your head, stop dreaming and start doing.
yes your “enough” exists
Many people have the wrong idea of ”enough”— so to speak, constantly tracking the elusive metrics that keep them in their hamster wheels. But if you reverse the two, you might be surprised at how easy it is to define and create a plan for achieving your “enough.”
Remember, not everyone looks the same enough. Your parents, best friends, and others all have their own metrics. If you are married or in a relationship, align your ideas and vision with your partner. Intertwining both perspectives enriches the experience.
Finding good enough for yourself is not a mysterious, unattainable pipe dream. And the first step is to find a “good enough” lifestyle. Understanding what you want your life to look like opens up strategies and opportunities to fund that dream.
live more than enough
Once you know what is most important to you and how you want to live your life, you have the tools to determine how much money you need to make that vision a reality.
Start by thinking about a few questions.
- What are your core values? How are you spending them now?
- What aspects of your life would you like to enjoy and maintain?
- where would you like to change?
- How do you see yourself growing personally and professionally over the next 5, 10, or even 20 years? What do you want to achieve?
- What activities make you lose track of time?
- Where do you feel most accomplished right now? Are there areas you feel unfulfilled or uninspired?
These deep questions require conscious thought and effort, but they can help identify if you’re living your ideal lifestyle, and if not, uncover the steps to get there. It’s helpful.
Let’s look at an example.
Let’s say you and your spouse welcomed a child into your family. Travel and culture are important values for both of you, and you feel it is important to raise your child bilingually. Well, you may want to travel and watch your children grow up in different countries to expand your worldview and connect as a family.
How much is “enough” for this family? It depends on whether they have careers that allow them to work from anywhere, where they plan to live (cost of living, alien tax, travel back to state, etc.), and their current depends on your savings and investments.
Look at foreigner blogs in the area where you want to live abroad and find out about living expenses and school fees. Alternatively, you may need to research the costs of bilingual schools in your area and find ways to keep these costs within your budget.
more is not always better
When you think about your ideal lifestyle, it’s easy to fall into the trap of wanting more. becauseHowever, more is not always better. In fact, more can add additional (and unnecessary) complexity to your life.
For example, you might initially want to buy a vacation home in your favorite sunny location. But have you ever thought about the practicalities of that choice: ongoing maintenance, property taxes, extended vacancies, transportation costs, insurance?
Additionally, if you are an avid traveler, a vacation home may limit your wanderlust as you may feel obliged to travel to that destination rather than exploring a new place.
Spend money intentionally in line with your values
Remember, in life and money, more is not always the answer. Instead of thinking about your life and money in terms of “more,” change your mood “intentionally.”
In doing so, you may find that you can direct your cash flow resources to areas that provide more value to you and your family. And maybe that’s enough, or maybe you want to seek additional coverage to make your lifestyle fruitful.
Simplicity gives you the space to spend your time and money purposefully without worrying about “more.”
By becoming more intentional, you become a richer mindset and have the tools to connect with your values.When your money supports what matters most to you, You’re more likely to find fulfillment, joy, and yes, “enough.”
Turning “must do” into “want to do”
There is an endless amount of financial literature that tries to teach you what you “should” do with money. However, that rhetoric is generalized and not specific to your goals, values, or desired lifestyle.
Now let’s change it. Instead of thinking about money in terms of “I have to do it”, think of it as “I want to do it”.
for example, You may feel obligated to pay for your child’s college expenses in fullBut if doing so means giving up savings for an annual family vacation that really matters to you, that may not be the best bet. We recommend paying 50% of your child’s college tuition. If you are in a position to help them pay off their student loans in the future, you can always choose to help them, but the important thing is to set yourself up for options and flexibility.
Also, if you are in a position to help them later (wedding, business finance, student loan assistance, graduate school, home down payment, etc.), you can save extra money in a brokerage account so you can. You have that flexibility.
Money is personal, and customizing how you spend it is essential so that it works for you and your family today and in the future.
Tips for saving “enough” for your ideal lifestyle
Now that was the fun part. Now it’s time to introduce some numbers into the formula. Once you know how you want to live, add up the approximate cost of that vision. Consider the following points:
- how much income you currently earn
- salary, unearned income, freelancing, investment, etc.
- desired career path
- Why don’t you work part-time slowly? Job change? Open your own business? Your career ambitions influence how much you have to work.
- Expected monthly and annual expenses (housing, travel, entertainment, etc.)
- This number is based on the ideal lifestyle we created above. If you want to move, research home prices, property taxes, state taxes, cost of living, and more.
- What insurance do you have? Do you need to add, adjust or cancel a policy?
- What is your current tax amount? How do you anticipate that change in your “good enough” scenario?
- outstanding debt
- Do you have a mortgage, car loan, student loan, personal, business or credit card debt? What are your monthly payments? Are you close to paying off? Once you do, how can you channel that dollar toward other goals?
- emergency savings
- What is the status of the emergency fund? Need a bigger cushion if you’re moving away from 9-5, expanding your family, or making another important life change?
- continuous investment
- Are you running out of a 401k or other retirement plan at work? Are you saving outside of retirement, like a brokerage account or HSA? Can you keep up the pace once you start working part-time?
- charitable donation
- How much are you currently giving to charity? Do you want to maintain that pattern or increase it?
This list may seem overwhelming, but remember that this is only a starting point.you may find it Help Seek Advice from a Financial Advisor Someone who can help you define your “enough” and develop a clear savings and investment plan to achieve it.
If you want to do this yourself, Tim Ferriss calls the process Dreamlining. You can calculate your number using this calculator!
Double Duty; How Your Money Helps Your Life Now and in the Future
When you think about it, you ask for your money a lot. We want to help you live a great life today and set you up for success in the future.
- But how do you strike the right balance?
- Are you saving and investing enough money to achieve both goals?
- How do you really define “enough” and how does it shape your life into something special?
These are incredible questions and our team wants to help you answer them. Remember one thing.
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