How much is enough?

How much is enough? That’s a question I get asked quite often. And it’s also one I ask my clients when we first talk about putting in place a LifePlan.

I often a share a book with clients called Enough – How Much Money do You Need for the Rest of Your Life? By Paul Armson. It helps clients think about various aspects of their life so they can start to consider what they want both now and in the future.

When I was thinking about writing this article I asked somebody who understands this pretty well – ‘How much is enough for you?”

Here’s how the conversation went…

She admitted she didn’t really know. When I pushed her on if she had enough already, she said she knew she didn’t. She had been living on her savings for too long, and was not taking sufficient salary from her business. She felt she was running out of money.

So I asked her why she hadn’t asked her financial adviser to prepare a lifetime cashflow for her. She said she knew he could do it, but she hadn’t felt it was necessary.

She talked about her pension, her investment and likely inheritance. She touched on the value of her house, and acknowledged that she could either move somewhere smaller in the future, or set up an equity release scheme to obtain further income.

So, in her mind, her future was safe because these things were in place. But she didn’t know if she was going to be safe. And she wasn’t living the life she wanted right now.

Now, I do have to say, whilst I am a huge advocate of living your best life right now, there are considerations to balance that.

Sometimes, to achieve what you want a few years down the line, you may have to make some immediate sacrifices now – spend less, save more, or work in a different way. But you do that from a position of power and knowledge. You know the end goal is in sight, and you are working towards achieving that.

You do need to know what you want though. You need some ideas of how you wish to spend your time and what a very good life would look like for you. Everyone is different, so it’s important that you know that answer for you – not your loved ones, your family or your friends.

So, to return to my conversation…

The lady I was talking to said she knew what her monthly outgoings were, and she could give me a figure about what she’d like her monthly income to be – with a healthy balance after her expenses. But she wasn’t anywhere near that figure right now.

She also acknowledged that whilst she had a fairly good idea about how she would spend a high proportion of her time once she was no longer working full time, she hadn’t mapped it all out.

Having that conversation with her, has helped her to realise she hasn’t got this stuff nailed right now. She knows she is not going to have all the answers – it can take time to really pinpoint the details of your LifePlan. But equally, she has some questions to answer – including what she is going to do to make up that shortfall right now, so she can live the life she wants.

Now I want you to imagine the impact this could have on you. And if you find this exciting, I think it’s time we booked your “enough” conversation! Please give me a call on 01344 875 310 to arrange a chat.

Start getting a return on your life…

First steps: Take your free Return on Life Index assessment

How much is enough?
Start getting a return on your life…

First steps: Take your free Return on Life Index assessment