Lifestyle

Introduction:

You may feel you would like more money in your pocket, but have you ever asked yourself the philosophical question, “How much money is enough?”

If you ask a billionaire, the response is likely to be that no amount is enough. Let’s face it, they become billionaires because they’re constantly driven to make money.

However, other people might modestly settle for, say, $1 million.

People who are a little more thoughtful might give you a different number, somewhere between the two extremes, possibly.

The cost of chasing money:

We all need money, and we all want a decent standard of living.

However, always remember that there is a cost to chasing money. And that cost, among other things, is the impact it has on your time.

We can get more money, but we can never get more time. We all get 168 hours each week, and that’s it.

So, there comes a point where there might be a better way to spend your time than to chase more money.

And you’ll never know if you’ve reached that point if you don’t define it.

Achieving happiness:

Studies have shown that happiness doesn’t increase beyond an income of around $70-80k per year.

That might seem modest, but it’s probably a comfortable living in most parts of the country.

However, it’s not enough to drive a new Mercedes every three years and vacation in Europe with the family every summer.

It would be tough to send your child to Harvard on a $70,000 salary.

So, ask yourself, How much is enough?

The answer is that it all depends on you and your circumstances.

Factors to consider:

To consider how much you need to live fully, think about the following:

1. Age

How old are you?

How much longer can you reasonably expect to live?

If you’re 90, you probably require less money for the rest of your life than people in their 20s and 30s.

There are actuarial tables that can tell you how much longer you’re expected to live. However, you should plan to live longer than expected!

You will find an example of actuarial tables HERE and you might find this useful.

2. Expenses

How much are your monthly expenses?

What would your expenses be if you were living the life of your dreams?

Let your imagination run wild. What expenses would you have?

A new bowling ball each year or a second house in Vail, Colorado? A housekeeper? A thoroughbred racehorse?

It’s your life. Determine how much it would take to finance what you think is your ideal life.

3. Dependents

Who are you responsible for?

Do you have three children who will attend college in the next 10 years?

Do you have a spouse who doesn’t work?

Do you care for an ageing parent or parents?

For how long do you expect to have responsibility for financially providing for others?

Ultimately, you must consider every potential demand on your wallet or purse.

4. Debt

What is your current debt situation?

Do you have 20 years left on a mortgage hanging over your head?

Significant medical bills?

Credit card debt to repay?

Debt must be financed, and repayments must be made. So, you can’t ignore debt.

5. Retirement

None of us can go on forever. At some point, we must all take life at a slower pace.

So, when would you like to retire, and how much do you need each month to live comfortably?

How would you like to spend your retirement?

Do you want to travel regularly?

Play golf every day?

How much would a typical month in your ideal lifestyle retirement cost?

6. Lifestyle

What toys do you want to own? And by that, I mean serious toys.

A plane? A Porsche? A boat? A holiday home in Aspen or Tuscany? Swimming pool? Motorcycle?

If they give you pleasure, then it’s reasonable to work towards owning them

Then again, maybe you value your free time above all else and would be happy living a simple life with a Labrador retriever and a large vegetable garden, reading books all afternoon.

The choice is yours. Equally, you can go as far as your imagination will take you.

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For everyone, it’s different:

There are no right or wrong answers to the question, “How much money is enough?“

Everything depends on your desires and circumstances.

The number for you might be quite small or very high.

It’s just your number. It’s personal, that’s all.

If you’ve never considered how much money you need, then take the time to think about it.

Money in perspective:

Having money and financial freedom is great for a couple of things, in particular solving problems and providing choices.

However, beyond that, it has limited value.

Certainly, it’s a mistake to use money to establish status. Worrying about impressing your peer group should be left to teenagers.

Needing money for the wrong things is limiting. It requires working longer and harder than necessary.

You could be doing other things with your limited time on Earth.

Conclusion:

Think long and hard about what is most important to you.

Ensure that you develop an income, savings, and net worth to acquire the possessions and freedom that will allow you to live your life the way you desire.

Spend time addressing this important issue, and you might be able to quit working sooner than you think.

However, have money in your head but never in your heart.

And never let your pursuit of money prevent you from spending time with family and friends.

A lonely old age would be a heavy price to pay for wealth creation.

There is little point in being the richest person in the graveyard with no one to mark your passing.

And never, ever forget to spend at least some of your time enjoying yourself. As we say where I come from, you’ll be a long time dead!

About the author:

Roy Sutton is an experienced blogger whose main website has generated more than 350,000 page views per month. Before becoming a blogger, he was a businessman and CEO of a national telecom operator and had a professional background in telecom systems and information technology.

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How to declutter your home? A common question dealing with a subject most of us struggle to deal with effectively.

Do you have a problem with clutter, dear reader?

Would you like some tips on how to declutter your life?

Clutter is perhaps the greatest curse of modern living. You keep buying and acquiring possessions, but rarely do you have a good clear-out, right?

It’s not easy, of course. We all develop an emotional attachment to our possessions. Certainly, I do.

However, gradually, our possessions are taking over our living space and our lives too, right? And our world keeps getting smaller, doesn’t it?

Clutter just adds stress to your life, and managing all your possessions can be a struggle.

It’s a problem, of course, but what’s the answer?

The answer is to develop the habit of ruthless decluttering.

Do this, and your life will be a lot easier. Keep your life as simple as possible, and you’ll find it a whole lot less stressful, I promise you.

Here are 8 tips for eliminating the clutter in your life:

How to declutter:

1. Personal inventory management

We all have possessions, and most of us have far more than we need. So the active management of your possessions is a continuous process.

Have a regular review of your possessions and be ruthless about getting rid of those things you no longer use or don’t need anymore.

It’s hard to get rid of everything all at once, of course, so just do a little decluttering regularly and as often as you can.

2. The ‘one-year’ rule

If an item hasn’t been used for a year, then you probably don’t need it at all. And if you don’t need it, get rid of it.

Perhaps you could sell it on eBay, at a garage sale, or at a boot sale. Alternatively, give it to a charity shop. However, don’t make the desire to sell it the reason why you hold on to an item.

If you can’t get rid of it quickly, get rid of it anyway.

The point is to minimize the clutter in your life and allow someone else to make use of an item if you no longer can.

3. Buy only what you need

It is so easy to buy anything now that all too often we buy things without giving serious thought to whether we will use them or not.

For instance, we are browsing online and we see something that looks like an amazing bargain. So out comes our flexible friend, and we purchase the item.

The item arrives a day or two later and goes into our wardrobe, a drawer, or wherever, and it’s then largely forgotten.

The instant gratification we get from making the purchase has largely subsided by the time the item arrives.

We mean to use it, of course, but all too often it never gets used. And when that happens, it is not a bargain at all; it is simply a waste of money.

So before you buy anything, ask yourself a few questions:

- - - Do I need it?
    - Will I use it?
    - Can I afford it?
    - If I didn’t have it, would it matter?

Unless you can be sure it meets a genuine need, then it’s better not to buy at all.

4. Never impulse buy

All too often, impulse buys are mistakes.

So it’s better not to browse online stores or do any window shopping in real stores.

Decide exactly what you need to buy in advance, and then only go shopping for specific items.

Stick to buying only what you have planned to buy because it meets a genuine need in your life.

5. The one-in, one-out rule

For clothing, especially, rather than having your wardrobe bursting at the seams, each time you purchase a new clothing item, it’s a good idea to see if there’s an old one you can throw out, sell, or give to charity.

Nowadays, you don’t have to throw things away literally. If it’s not too old and still in fair condition, then you might be able to sell it on eBay or at a garage or boot sale.

Alternatively, perhaps you could give it to a charity shop.

Whatever your chosen approach to the disposal of items, you have to be ruthless to avoid holding on to clothing you’ll never wear again.

6. Don’t form an emotional bond with your possessions

If you throw out an item you no longer use, the world will not end.

You’re not tied to your possessions, and you’ll not experience physical pain should you get rid of them. Once you get rid of them, they’ll be quickly forgotten.

Individual items that you possess are simply a small and unimportant part of you. They don’t define you, and they don’t control you.

They were there only to serve a purpose, and if circumstances have changed and they no longer serve that purpose, then it’s time they no longer played any part in your life at all.

Parting with possessions is not a bereavement. You’ll get over it quicker than you might imagine. Probably within minutes.

7. Enjoy the freedom

Unburdened by unnecessary possessions, you can enjoy a stress-free life without all that clutter weighing on your mind.

You’ll be able to find those things you need much quicker because they’ll no longer be buried beneath all that clutter.

8. Enjoy your space clutter-free

Why live in a space dictated by clutter when you can live in a space dictated by you?

You should be the master of your own space. Never be a slave to clutter.

Get the declutter habit and get it now.

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How much money is enough?

Introduction:

The cost of chasing money:

Achieving happiness: