How much is enough?

Date Published:13/12/2012

You may never have asked this question for fear of the answer, or possibly because you didn’t think that it was possible to find the answer.

Together we can easily work out just how much money you need to achieve your objectives. In practical terms, this means that it is possible to work out how long you need to stay on the hamster wheel of life – and how fast you need to run – before you can jump off.

How much is enough? is determined by a number of factors including:

  • today’s cost and the future cost of your objectives
  • the length of time from now until the money is needed for your objective
  • your starting point on the path to achieving your objective
  • the intended strategy to get you to your objective, which may include saving or investing money
  • the likely net investment returns that will be achieved considering your investment risk tolerance for each objective

At this point the roadmap to achieving each of your objectives becomes totally quantifiable.

Hence, you now know what you have to do to meet your objective, which may, for example, be something like to stop working at age 55 and continue living in your home town, but spending four months every winter in The Bahamas, as you dislike UK winters. This will cost £20,000 every year in today’s money on top of your normal annual living expenses of £40,000 in today’s money.

One of the most important things you can do is to understand about your money, your lifestyle and objectives and how you can take control of them. In this way you can stop the fear, and uncertainties surrounding money, from controlling you.

Together, having established your life planning objectives, we will ensure that your finances are correctly ordered to meet your objectives. You will have joined the small crowd of people who really are in control of where they are going along with how and when you will arrive.

balanced stones