How much is enough?

How much is enough?

I was with a client last week and we were discussing goals. Having enough money to enjoy the lifestyle you want is important and allows you to achieve financial freedom – not worrying about money.

To get this freedom you don’t need to be loaded, you don’t need to earn a fortune. You just need enough.

So how much is enough?

When I was younger and employed, I was constantly after more money – promotions, new jobs – all to secure a pay rise.

I thought an extra £2,000, £3,000 or even £10,000 would mean I’d be comfortable, and it would make me ‘happy’.

I was already what could be considered ‘well paid’ but I didn’t see this.

The reality was, any extra money would be spent – pay off the overdraft, new clothes, more nights out. There would be no discernible change in my lifestyle. I was living as Robert Kiyosaki’s poor Dad. Never had any spare money.

I was living at and often beyond my means.

The mistaken idea that if I earned more money it would be ‘enough’ and I’d be happy.

Now the focus is very different, and I apply the same thoughts I have now and had back then to discussions and conversations I have with clients.

I ask clients if they earned extra money would it really change and improve their lifestyles?

Now if you have a low income, then an extra £5,000 a year would have a dramatic impact. It could be the difference between eating enough food, being able to pay the bills or going without and running into debt.

If you earn £150,000 a year would an extra £20,000 change much?

The answer in real terms is no.

Bigger house, more expensive car, clothes and holiday, but not really all that different.

So, if that extra income you ‘think’ you need requires you to work an extra 5, 10 or 15 hours a week. Or work away from home and the family during the week…

…is it worth it?

Wouldn’t you rather be spending time with your family and doing the things you enjoy with the people you care about?

So, if you’re considering working more and harder, make sure you have a clear reason why.

It should be to help you achieve freedom. Real freedom the kind that comes from having enough money and time to enjoy the lifestyle you want with the people you care about.

Don’t just go chasing more money because you think it will make you happier.

So back to the discussion with my client, the same as the one I’ve had with plenty of other clients. Did he really need to earn more money?

When I put this to him, bearing in mind he already has a high level of income and an enjoyable lifestyle (his words) it did make him stop and think about why he was doing what he does. Or rather what he already had compared to what he was thinking about trying to achieve and what he needed to do to get there.

The goals he now has set reflect the fact that he does want to spend less time at work and enjoy his free time more. This would make a real difference to him.

The extra £xxxxx wouldn’t.

So if you’re planning on working harder to achieve more just ask yourself why and is it what you really want?

 

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