It's NEVER going to be enough!
Pick a number: $1 million, $10 million, $50 million.
It’s NEVER going to be enough …
You see, when you get to whatever number you pick in advance as being THE NUMBER you will find that your expenses magically jump up to meet it … or worse, beat it …
Why?
Before you make the number, you are thinking like a [plug in your favorite means to scrape enough money to subsist on: employee, small business owner, plumber/electrician/doctor/lawyer/accountant].
This means that you are dragging in your [plug in your subsistence salary here: $30,000, $50,000, $100,000, $200,000] …
… which just happens to be barely enough to pay your current [plug in your vices here: food, mortgage, car payments, plasma TV payments].
So, getting to [plug in your "I'm really rich' number in here: $1 million, $10 million, $50 million] really would make a difference … in your mind!
You see, your current lifestyle isn’t your ‘dream lifestyle’, as soon as you improve your Net Worth your dreams also go up!
That means that your $120,000 apartment suddenly becomes $350,000 when you have $1,000,000, then it becomes $1,500,000 when you have $5,000,000 and so on …
Your $5,000 chevy at Just Over Broke becomes a $35,000 Cadillac CTS at $1,000,000, and a $120,000 Maserati Gransport Spyder (oh, yeah!) at $5,000,000.
A better way is to work backwards: decide how much you need to earn each year to finance the life of your dreams (more on this in a later post) and multiply by 20 (what most advisers recommend) to 40 (what I think) and that is The Number for you.
The answer will probably scare you into action (it’s the reaction I’m hoping for!) or to death (bummer), but, always keep that Number in mind when deciding what ‘rich’ means to you …
[digg=http://digg.com/business_finance/It_s_NEVER_going_to_be_enough]
.
.
.
22 Responses to “ It's NEVER going to be enough! ”
Leave a Reply
I made $7 million in 7 years™ … but, I started out $30,000 in debt.
Now, find out how you can get rich(er) quick(er) ... no scams, no schemes ... just good old financial advice! 
![Money Hackers Blog Network](http://www.moneyhackers.net/badges/moneyhacker3.jpg")
[...] up equity in (c) – I ignored the ‘value’ of any business until I sold it - I used my ‘divide by 20 – 40 rule’ to decide how much I could spend each [...]
[...] you calculated your Number, was it anything like $30,000 or $40,000 a year? I bet it was MUCH MORE. And, that’s the [...]
[...] problem is, you can’t just save yourself to the retirement of your dreams on the average salary … you have to at least earn more and save most of the [...]
[...] as changing careers, starting a business, etc.) – then you had better have a clear idea of how life changing the outcome will be [...]
[...] three things: 1. A destination When it comes to money, your destination is in two parts (a) HOW MUCH you need, and (b) WHEN you need it. The when is usually in terms of WHEN you stop working, but it [...]
[...] have a place in your journey towards $7million in 7 years (or whatever target you set for yourself) … it’s how I did it [...]
[...] I mentioned in a recent post, this will always be MORE than you think … and, [...]
[...] let that be you … start by working out your Number, and let’s go from there [...]
[...] This stage is all about moving more risky ACTIVE assets (businesses, trading portfolios, etc.) into PASSIVE portfolios (income producing real estate, selected value stocks, inflation-protected bonds, etc.) that generate enough passive income to support your dream retirement lifestyle. [...]
[...] Even when I was starting out, I only ever did one budget … actually, I tracked EVERY SINGLE EXPENSE for just one month … that was enough to tell me where I was and I already knew where I needed to go. [...]
[...] 3. Multiply by 20: that is the amount that you will need to have in passive income-producing investments to support your’ Life’s True Purpose Lifestyle by the date that you expect. This becomes your Magic Number. [...]
[...] here is the financial parallel – one that I tried to articulate in one of my very early posts: The bank balance isn’t really that important. It is a means to an end. In other words, you [...]
[...] retirement Tags: retirement, Saving, The Number In a couple of posts, I have talked about The Number – the amount that you need to have saved (preferably, invested in passive income-producing [...]
[...] Just remember, this blog and my advice isn’t for everyone … it’s only for those who need to become rich … [...]
[...] So, if you have a hobby, think about how you can use your creativity to move you closer to your financial dreams: [...]
[...] $1,000,000 (or even $2 Mill. or maybe even $3 Mill.) will not be enough for MOST people, you simply can’t SAVE your way to [...]
[...] Not, the life that the investment is capable of supporting … not the life that I have … not even the life that I want … but, nothing less than the life that I need. [...]
[...] Not, the life that the investment is capable of supporting … not the life that I have … not even the life that I want … but, nothing less than the life that I need. [...]
[...] have to acknowledge that I caused the confusion in the first place by writing in one of my earliest posts: A better way is to work backwards: decide how much you need to earn each year to finance the life [...]
What a great post and so true! Prior to setting up a solid budget, every time I earned more money, I spent more money. It took quite a bit of discipline to finally bring my expenses inline with my income.
How true… we adjust our lifestyle so easily to fill or overfill our incomes. Instead if we adjusted our incomes to allow our incomes to achieve our dreams… well that’s another ball game.
Good stuff.
Thanks for all the information, it has giving me a new way of looking at things.