Financially, When is Enough, Enough?
Ever wonder how much money it would take for you to feel totally safe and free from financial stress? Take a moment and think about it – what’s your number? Got it?
In a number of big studies, researchers asked people the exact same question. The results were stunning, if not saddening. Regardless of the participants’ level of wealth, the answer was almost always more than they had. That’s right, even the very wealthy don’t find contentment. Even their answer was almost always, “More than I have now.”
Shocked? Probably not.
It turns out, our brains are wired to feel uneasy about the future. That little voice in your head saying, “What if something goes wrong?” isn’t just being dramatic – it’s trying to keep you safe. But when uncertainty is always looming, the need for “just a little bit more” can become an endless hamster wheel. So how do we jump off?
The answer is to spend the time and effort necessary to develop your EIEN, your “Enough Is Enough Number.” What’s that? It’s the amount of money you need in safe money investments that will provide you the lifestyle that is enough for you.
This is so painfully simple to understand that it almost sounds ludicrous. Yet so few have developed their number. Finding that elusive number is a combination of determining lifestyle costs and adding the cost of the unknowns that may wage war on your comfy lifestyle. Things like long term health care expenses, rampant inflation, and a new roof on the house are at the very heart of the fear of running out of money.
Would you believe that you can actually plan for these and turn unknowns into manageable knowns? In fact, that’s what we spend most of our time doing with and for clients. We walk them through every facet of retirement planning to discover and bring into the light the very fears that cause us to never truly arrive at our respective EIENs. They’re manageable.
The confidence that comes from the EIEN cannot be underestimated and it allows all sorts of magic to happen: becoming less prone to worry, more apt to become charitable with time and possibly money, and better able to live fully…free from the worry of money. Sounds good to me.
So then, what’s your EIEN? The process starts with:
- Build a Budget: By accounting for every dollar that flows through your hands throughout the year, you’ll begin to gain confidence and also determine if changes would allow you to reach your goals sooner.
- Plan for Retirement Life: Considering how your lifestyle and spending habits may change during retirement is a challenging, yet doable task.
- Factor in Risks: Then we consider all of the risks that may threaten your lifestyle and cost money to address.
- Run the Numbers: We apply some projections on likely rates of return from your investments, inflation rates, and taxes.
- Find the Right Tools: Go out into the financial marketplace to determine the most appropriate strategies, products, and investments available to provide you the best outcomes.
The result of all of this preparation is a renewed sense of confidence and conviction about the best next steps to take. It’s a really transformative experience when you can see, feel, and understand your EIEN.
While some people are content to ‘wing it’ during retirement, if you’re not that person, we can help. Find your EIEN and free yourself to focus on life’s bigger opportunities. It’s within your grasp.
