Category: MARKET

WHERE DO YOU ‘THINK’ YOU SHOULD BE?

Reflecting on our progress is something we all do, but often without knowing it. Whether we’re aware of it or not, several times a day, we measure ourselves against something or someone—be it our past self, others, or some societal ideal. Whether it’s consciously deciding to check in on our progress, or doing so unconsciously, benchmarks are always being set. 

These benchmarks could be internal or external, and they serve as a gauge of how well we’re doing. And while there’s a place for both, it’s important to consider where we are dropping our anchor.

Think of yourself as a boat on the open water. You can’t always stay anchored in one spot, but sometimes it’s important to drop anchor for stability. It’s the same with how we measure our progress. We need to set benchmarks that reflect where we’re at in the present, but also allow space for growth and movement. Just like the tide, our progress should be flexible and responsive, not static.

When it comes to growth—whether in your finances, personal life, or career—it’s often healthier to focus on internal benchmarks. Internal benchmarks are the personal standards you set for yourself based on your own values, goals, and aspirations. It’s not about comparing yourself to others, but recognising how far you’ve come. External benchmarks, such as comparing your progress to others, can be helpful for some light perspective, but they can also leave us feeling frustrated or discouraged if we’re not where we “think” we should be.

Take the world of finance as an example. Let’s say you compare the performance of your portfolio against a stock market index or the success of a financial influencer. These external benchmarks are fine for reference, but if you base your sense of success solely on these metrics, it can lead to disheartenment. For someone like Elon Musk or Jeff Bezos, billions in earnings or the sale of a company might be just another day at the office, but for most people, such achievements would be life-changing. If you measure your progress against others’ success, you’re missing the bigger picture of your own journey and unique goals.

Now, think back to the global disruption of the COVID-19 pandemic. If we had only relied on our internal benchmarks, we might have felt overwhelmed by the sudden shift in our lives, believing we weren’t “performing” as expected. But by considering the external context—the worldwide crisis that affected nearly everyone—we were able to adjust our expectations and take stock of how far we’d come despite the challenges.

And let’s not forget how easy it is to be swayed by the success stories we see around us. Social media, news, and even friends and family can present a curated view of success, leaving out the behind-the-scenes struggles, setbacks, and failures. We tend to see the final achievements, not the daily grind it took to get there, which can distort our own sense of progress. It’s important to remember that behind every success story, there’s usually a lot of hard work and resilience that goes unseen.

So, when it comes to measuring your growth, take a step back and remember that a balanced approach is key. Internal benchmarks—those tied to your own personal goals and values—should be your primary reference point. Use external benchmarks as a lighter guide, but don’t let them define your progress. With this approach, you’ll gain a more grounded and fulfilling perspective on how far you’ve come, and more importantly, how far you’re capable of going.

A will might not seem like the most exciting thing on your pre-vacation checklist, but it’s arguably one of the most important.

Mark Twain once said, “The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time.” It’s a confronting, yet profound reminder that planning for the inevitable is just part of living a well-considered life. And yet, when it comes to writing and signing a will, many of us are guilty of procrastination, perhaps hoping that avoiding the topic will delay its necessity.

But here’s a thought: imagine heading off on a long-awaited holiday without having secured one of the most crucial documents of your life. You’ve packed the sunscreen, booked the rental car, and double-checked your hotel reservations—but have you ensured your financial and personal affairs are in order? 

Holidays are a time of joy, relaxation, and adventure. But let’s face it, travel—whether it’s by car, plane, or camel—comes with risks. While the odds of anything going wrong are incredibly slim, life’s unpredictability is the very reason why having a will is a cornerstone of responsible planning. A will is your way of saying, “I’ve thought about this. I care about the people I love, and I’ve taken steps to make things easier for them.”

Yet, so many people avoid the process entirely. In fact, studies show that more than half of adults globally don’t have a valid will. Why? For some, it’s the discomfort of confronting mortality. For others, it’s the misconception that estate planning is only for the ultra-wealthy. 

But here’s the truth: having a will isn’t about wealth; it’s about clarity, fairness, and ensuring that your wishes are respected, no matter what.

Think of it as a gift

Writing a will isn’t morbid—it’s practical. In many ways, it’s a gift to your loved ones. Without a will, decisions about your estate could be left to courts or legal systems, creating unnecessary stress and potential conflict among your family and friends. Having a will ensures that your assets, responsibilities, and even sentimental belongings are distributed according to your intentions.

But let’s not stop there. A comprehensive will can also outline guardianship for children, instructions for pets, and preferences for medical care or funeral arrangements. It’s a roadmap for your loved ones, giving them peace of mind during what would undoubtedly be a challenging time.

Mark Twain also said, “Plan for the future because that’s where you are going to spend the rest of your life.” Having a will in place isn’t just about being prepared for the unexpected—it’s about lightening the mental load so you can truly enjoy the life you’re living right now, including those well-earned holidays.

So, as you prepare for your next adventure, remember that planning for life’s uncertainties is the ultimate act of responsibility—and love. By ensuring your will is signed before you go, you’re not just protecting your assets; you’re giving yourself and your loved ones the gift of peace of mind.

Now, go enjoy that holiday—knowing you’ve already taken care of one of life’s most important to-dos. Safe travels!

Have you ever noticed how similar financial wellness is to physical health? Just as we visit doctors for regular check-ups, perhaps it’s time for a different kind of examination – one that focuses on your financial health!

Let’s step into this unique doctor’s office together.

Patient History

Do any of these symptoms sound familiar?
– Occasional (or frequent) money anxiety
– A strong desire for financial certainty
– Dreams of a comfortable retirement that seem just out of reach
– A tendency to react emotionally to market headlines
– Late-night worrying about financial decisions

Diagnosis

First, the good news: You’re perfectly normal. These symptoms are common to almost everyone who cares about their financial future. Being concerned about money doesn’t mean something’s wrong – it means you’re human.

But just like physical health, acknowledging these symptoms is the first step toward improving your financial wellness.

Treatment Plan

1. Preventive Care

Think of budgeting and expense tracking as your financial exercise routine. Just as regular physical activity keeps your body healthy, maintaining awareness of your spending habits strengthens your financial fitness. It’s not about restriction – it’s about making intentional choices that align with your values and goals.

2. Digital Detox

Just as we limit our intake of junk food, consider a diet from negative financial news. While staying informed is important, constant exposure to market drama and economic doom-scrolling can be toxic to your financial peace of mind.

3. Stress Management

Market volatility is like weather – it’s going to happen whether we like it or not. Instead of reacting to every market movement, develop resilience through long-term thinking and a well-structured financial plan.

4. Regular Check-ups

Schedule annual financial reviews, just as you would regular health check-ups. Use these moments to reflect on your progress, adjust your strategy, and ensure you’re still moving toward your goals.

Prescription for Long-term Financial Health

Think of this as your daily financial vitamin regime:

Morning Dose:
– Pay yourself first through automatic savings
– Focus on what you can control
– Maintain a long-term perspective

Afternoon Boost:
– Diversify your investments globally
– Keep your investment costs low
– Stay committed to your strategy

Evening Reflection:
– Review your protection against life’s surprises
– Ensure your estate planning is up to date
– Check that your financial decisions align with your values

Side Effects to Watch For:
– FOMO (Fear Of Missing Out) when others brag about investment wins
– Anxiety during market downturns
– Temptation to time the market
– Urge to follow the latest investment fad

Remember: Just as crash diets don’t lead to lasting health, get-rich-quick schemes rarely result in sustainable wealth. The path to financial wellness is a marathon, not a sprint.

Follow-up Care

Regular check-ins with your financial planner are like visiting your doctor – they help catch potential issues before they become problems and keep you on track toward your goals.

The Prognosis

With proper care and attention, your financial health can thrive. Like physical wellness, financial wellness isn’t about perfection – it’s about progress and consistency.

Remember, everyone’s financial health journey is unique. What works for others might not work for you, and that’s okay. The key is finding a sustainable approach that aligns with your values and goals.

Note: This blog post is for educational purposes only and should not be considered specific financial advice. Just as you wouldn’t diagnose a medical condition from a blog post, please consult with qualified financial professionals for advice tailored to your situation.

You may not know this, but there is a joke in the investment world that October is the worst month in which to invest. It’s easy to get swept up in the seasonal chatter about how this month is supposedly more dangerous for the markets than others.

But before diving into these claims, here are some wise and witty words from Mark Twain:

“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”

Twain’s remark, laced with humour, reveals a deeper truth about investing that transcends the quips about October—or any month for that matter. The reality is that speculation in the markets carries inherent risks year-round. The idea that a particular month is uniquely treacherous is more a product of market folklore than financial fact.

Why do these myths persist?

Behavioral finance offers us an interesting perspective. Human nature gravitates toward patterns, even when none truly exist. This tendency, known as “pattern recognition,” has roots in our survival instincts—finding patterns in nature helped our ancestors predict seasonal changes and avoid dangers. But in the world of investing, this can lead us astray. It encourages a mindset that looks for reasons outside of solid financial fundamentals to explain why the market is up or down, creating unnecessary fear or excitement.

October has, admittedly, earned a notorious reputation due to significant historical market events, like the stock market crash of 1929 and Black Monday in 1987. But focusing solely on these moments overlooks the fact that positive gains and notable market recoveries have also taken place in October and every other month. If you find yourself overly focused on the stories surrounding specific months, it may be a sign to revisit your overall financial strategy and ask yourself: Is my approach to investing being influenced by these seasonal fears?

The best way to navigate any month of investing is not by trying to predict or time the market, but by relying on time-tested principles of financial planning. Diversify your portfolio, stick to a disciplined investment strategy, and maintain a long-term perspective. Remember that emotional decision-making often leads to short-term fixes that can harm your long-term financial health.

This is where lifestyle financial planning comes into play. A plan built on your life’s goals rather than market headlines allows you to make decisions that align with your deeper values and aspirations. When your financial strategy is rooted in what truly matters—retirement dreams, family security, or leaving a legacy—it becomes easier to ignore the noise of market myths.

Every time a scary month arrives, consider this month just like any other—a time to review your portfolio, consult your financial planner, and stick to your long-term goals. Because in the end, as Twain subtly suggests, every month comes with its share of risks and opportunities. The key is to approach them not with fear or speculation, but with strategy, understanding, and confidence in the plan that serves your life, not just your portfolio.

When was the last time you worried about being bitten by a shark? Probably not recently, unless you’re an avid surfer. Here’s a fascinating statistic that might make you smile: sharks bite around 70 people annually, while New Yorkers bite approximately 1,600 people each year.

Surprising, isn’t it??

This quirky comparison teaches us something profound about how we perceive risk – especially when it comes to our finances. Often, we’re so focused on the dramatic “sharks” in our financial waters that we miss the real dangers swimming right beneath our feet.

Let’s explore some common financial fears and discover whether we might be looking in the wrong places for danger.

“I’m scared of losing money in the market.”
Many of us view the stock market as a threatening shark-infested water. The media headlines about market crashes and losses certainly don’t help. But here’s the real risk many don’t see: not investing at all.

Think about it. While market volatility might feel scary, inflation silently eats away at your savings every single day. It’s like worrying about sharks while ignoring the rising tide that’s gradually submerging your safety island.

“I want to keep my money somewhere safe.”
This is another fascinating example of misplaced fear. Many people consider their money safest in cash or similar “risk-free” investments. But is playing it too safe actually risky?

Imagine you’re on a boat. You might think staying anchored in the harbour is the safest option.

But if a storm comes (let’s call it inflation), you might actually be safer out at sea where you can ride the waves. Similarly, a well-diversified investment portfolio might feel more turbulent, but it often provides better long-term protection for your wealth.

“I’ll invest when the time is right.”
This is perhaps the most dangerous misconception of all. Waiting for the perfect moment to invest is like waiting for the ocean to be completely calm before learning to surf – that moment never comes, and meanwhile, you’re missing out on valuable experience and opportunity.

The real risk isn’t in the timing of your investment – it’s in the time you’re not invested. Every day you wait is a day your money isn’t working for you, a day you’re not building towards your financial freedom.

“I need to keep working because it’s too risky to retire.”
Here’s where we need to talk about lifestyle risk. Many people stay in jobs they’ve outgrown because they fear they haven’t saved enough for retirement. But what’s the bigger risk – carefully planning a transition to retirement, or spending extra years of your life doing work you no longer find fulfilling?

So, what’s the solution?

Start by reframing how you think about risk. Instead of focusing on short-term market movements (the sharks), consider these questions:

1. What’s the risk of not having enough money to live comfortably in retirement?
2. What’s the risk of missing out on life experiences because of financial fears?
3. What’s the risk of staying in an unfulfilling job too long because you haven’t planned for alternatives?

Remember, just as staying out of the ocean entirely isn’t the answer to avoiding sharks, avoiding all financial risk isn’t the answer to building a secure future. The key is understanding which risks are worth taking and which are truly dangerous.

Take a moment to reflect on your own financial fears. Are you focusing on the sharks while ignoring the New Yorkers? Are your safety measures actually putting you at greater risk in the long run?

True financial wisdom isn’t about avoiding all risks – it’s about understanding which risks are worth taking for the life you want to live. Sometimes, the biggest risk of all is playing it too safe.

Ready to face your financial fears and make sure you’re protecting yourself from the right risks? Let’s have a conversation about aligning your risk management with your life goals.

After all, the water’s fine – once you know what you’re really looking out for.

Imagine standing at the base of a snow-covered mountain, looking up at the debt that’s accumulated over the years. It feels overwhelming, doesn’t it? But here’s the good news: you’ve got two powerful tools at your disposal to tackle that mountain – the Debt Snowball and the Debt Avalanche. 

Let’s explore these methods and see how they can help you reclaim your financial freedom.

The Debt Snowball: Small Victories, Big Momentum

Picture yourself rolling a small snowball down a hill. As it rolls, it picks up more snow, growing larger and faster. That’s the essence of the Debt Snowball method, popularised by financial guru Dave Ramsey.

Here’s how it works:

1. List your debts from smallest to largest, regardless of interest rates.
2. Make minimum payments on all debts except the smallest.
3. Put any extra money towards the smallest debt.
4. Once the smallest debt is paid off, roll that payment into the next smallest debt.

The power of the Snowball lies in the psychological wins. As Ramsey puts it, “Personal finance is 20% head knowledge and 80% behavior.” By quickly eliminating smaller debts, you build confidence and motivation to tackle larger ones.

Research supports this approach. A 2016 study in the Journal of Consumer Research found that consumers who focused on paying down the account with the smallest balance tended to pay down more of their total debt than those who focused on paying down the account with the highest interest rate.

The Debt Avalanche: Maximizing Mathematical Efficiency

Now, imagine an avalanche rushing down a mountain, wiping out everything in its path. That’s the Debt Avalanche method – a mathematically optimised approach to debt repayment.

Here’s the strategy:

1. List your debts from highest interest rate to lowest.
2. Make minimum payments on all debts.
3. Put any extra money towards the debt with the highest interest rate.
4. Once the highest-interest debt is paid off, move to the next highest.

The Avalanche method minimises the total interest you’ll pay, potentially saving you more money in the long run. As financial expert Ramit Sethi notes, “The Debt Avalanche method is the fastest and cheapest way to pay off your debts.”

A study by the National Bureau of Economic Research found that consumers who follow an approach like the Debt Avalanche pay down their debt about 15% faster than those who don’t.

So, Which Method Should You Choose?

The answer depends on you. Are you motivated by quick wins and need to see progress to stay on track? The Snowball might be your best bet. Are you disciplined and focused on minimizing interest payments? The Avalanche could be the way to go.

Remember, the best debt repayment strategy is the one you’ll stick to. As behavioural economist Dan Ariely says, “Money is not just about mathematics. It’s about what we want to achieve for ourselves and our families.”

Whichever method you choose, the key is to start rolling. Every debt you pay off is a step towards financial freedom. It might feel daunting now, but with persistence and the right strategy, you’ll soon be standing atop that mountain, debt-free and ready for your next adventure.

Life has a way of throwing curveballs when we least expect them. One day, everything’s running smoothly – you’re hitting your stride at work, the kids are thriving, and you’ve finally started that healthy eating plan. The next day, a single word changes everything: Cancer.

It’s a word that sends shivers down our spines, a diagnosis that none of us ever want to face. But here’s the stark reality – cancer doesn’t discriminate. It doesn’t care about your age, whether you’re 5 or 85. It’s blind to gender, affecting men and women. Your social status? Irrelevant. That gym membership and those kale smoothies? While they’re great for overall health, they’re not an impenetrable shield.

Cancer can touch anyone’s life, at any time. The fitness enthusiast training for a marathon. The busy parent juggling work and family. The retiree enjoying their golden years. The child with a bright future ahead. No one is immune.

But here’s the thing – while we can’t always prevent cancer, we can prepare ourselves to face it head-on if it ever enters our lives or the lives of those we love. It’s not just about having the right medical care (though that’s crucial). It’s about creating a fortress of support around ourselves and our families.

Organisations dedicated to fighting cancer emphasise several key areas we should focus on:

1. Access to treatment: Can we ensure that we or our loved ones get the best possible care if needed?
2. Support systems: Are we ready to rally as a family or community, providing the emotional backbone that might be needed?
3. Early detection: How attuned are we to changes in our health and the health of those around us?
4. Advocacy: Are we raising our voices to give cancer research and support the attention it desperately needs?

These are powerful reminders of what truly matters when facing such a daunting challenge. But there’s another aspect we need to consider – the financial impact.

Imagine for a moment: You’ve just received the diagnosis. Your world is spinning. The last thing you want to worry about is money. But the reality is, cancer treatment can be incredibly expensive. And it’s not just the medical bills. It’s the time off work, the travel expenses for treatments, the additional care needs that might arise.

This is where smart financial planning comes into play. It’s not the most comfortable topic to think about, but having the right financial protection in place can be a lifeline in these situations. Critical illness cover and income protection aren’t just insurance policies – they’re peace of mind. Knowing that if the unthinkable happens, you can focus on what really matters – healing and supporting your loved ones.

So, let’s ask ourselves some tough questions:

– If cancer struck us or someone we love tomorrow, would we be financially prepared?

– Have we considered critical illness cover for ourselves and our families?

– Do we have income protection in place in case we need extended time off work?

These aren’t easy questions, but they’re important ones. Because being prepared isn’t about living in fear – it’s about empowering ourselves to face whatever challenges life might throw our way.

Remember, planning for the worst doesn’t mean expecting it. It means loving ourselves and our families enough to protect them from all angles. It means giving ourselves the gift of readiness, so that if a storm comes, we can weather it together.

So, tonight, as you go about your routine – whether that’s tucking kids into bed, unwinding after a long day at work, or planning your next workout – take a moment to think about your financial armour. Is it strong enough to protect you and your loved ones? If not, maybe it’s time we had a heart-to-heart. Because at the end of the day, there’s no investment more important than our health and the well-being of those we hold dear.

Life is unpredictable, but with the right preparation, we can face even its toughest challenges with resilience and hope.

In the first part of this series, we explored five essential rules for personal finance, inspired by “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated” by Helaine Olen and Harold Pollack. The rules in the blog spoke to things like spending less than we earn, paying off credit card debt, save 10-20% of our income, augmenting contributions to retirement investments, and creating an emergency fund — all laying the groundwork for financial stability and success.

Now, let’s delve into the next five rules that will help you further simplify your financial life and build a solid foundation for the future.

Rule 6: Buy inexpensive, well-diversified mutual funds

Investing is often seen as a complex and intimidating process, but it doesn’t have to be. Olen and Pollack recommend buying inexpensive, well-diversified investment funds (such as mutual funds, unit trusts, or ETFs) as a straightforward approach to growing your wealth. Diversified funds spread your investments across various assets, reducing risk while providing the potential for steady growth. By focusing on low-cost options, such as index funds, you also minimize fees that can erode your returns over time. Remember, the goal isn’t to chase the highest returns but to build a balanced, long-term investment strategy that aligns with your financial goals.

Rule 7: Choose a Financial Adviser who commits to a fiduciary standard

When seeking professional financial advice, it’s crucial to work with someone who prioritizes your best interests. A fiduciary is legally obligated to act in their clients’ best interest, which contrasts with advisers who may recommend products or strategies based on commissions or incentives. By choosing a fiduciary advisor, you ensure that the guidance you receive is tailored to your financial well-being, not someone else’s profits. Don’t hesitate to ask what standards we adhere to, it’s a crucial step in protecting your financial future.

Rule 8: Protect yourself with adequate risk cover

Insurance is a critical component of financial planning, serving as a safety net against life’s unexpected events. Whether it’s health insurance, life insurance, or disability coverage, having the right policies in place can prevent financial disaster. Olen and Pollack discuss the importance of ensuring you have adequate coverage to protect yourself and your loved ones. This doesn’t mean over-insuring or buying every policy available, but rather thoughtfully considering your risks and securing appropriate protection.

Rule 9: Advocate for strong social safety nets

Social safety nets, including programs like pensions, unemployment benefits, healthcare, and other forms of social insurance, are crucial for ensuring financial stability and security across all stages of life. While the specific programs may vary from country to country—ranging from Social Security in the U.S. to state pensions in the UK, or unemployment insurance in countries like South Africa, Germany and Australia—the underlying principle is the same: these systems provide a critical foundation for economic stability and support during times of need.

Olen and Pollack emphasize the importance of understanding and supporting these social safety nets within your own country. This can be done through informed voting, civic engagement, and staying informed about the policies that affect these programs. Although it might feel like these systems are beyond your immediate influence, they play a crucial role in the broader economic health that benefits everyone. By advocating for strong, well-funded social safety nets, you contribute to a more stable and equitable society, which in turn, supports your own financial well-being and that of future generations.

Rule 10: Remember the importance of community

Finally, personal finance is not just about individual success but also about contributing to and benefiting from a healthy community. Engaging with your community—whether by supporting local businesses, volunteering, or simply being an active participant—can lead to a richer, more meaningful life.

Financial security is important, but so is the well-being of the society in which we live. By balancing personal financial goals with a commitment to the common good, you create a legacy of both prosperity and positive impact.

Remember, mastering personal finance doesn’t require complex strategies or advanced knowledge—it’s about sticking to the basics, making informed decisions, and aligning your financial behavior with your long-term goals. By incorporating these ten rules into your financial planning, you can simplify your approach, reduce stress, and ultimately achieve the financial independence and security you deserve.

Whilst it’s easy to get lost in a sea of jargon, investment options, and conflicting advice, financial success doesn’t require a degree in economics or hours spent poring over market trends. In fact, according to Helaine Olen and Harold Pollack in their book The Index Card: Why Personal Finance Doesn’t Have to Be Complicated, everything you need to know about managing your money can fit on a single index card. 

Yes, you read that right—just ten simple rules are all you need to master your financial life.

In this first blog, of a two-part series, we’ll explore five rules will help most people cut through the noise and provide a clear, straightforward path to financial stability and success.

Rule 1: Spend less than you earn

At the heart of financial security lies this golden rule: spend less than you earn. It’s simple in theory but challenging in practice, especially in a world where consumer culture encourages constant spending (AKA: lifestyle creep!). By living within your means, you create the financial flexibility to save, invest, and plan for the future without the looming threat of debt.

Rule 2: Try to pay off your credit card balance in full every month

Credit card debt is one of the most common financial pitfalls. The interest rates are notoriously high, and carrying a balance from month to month can quickly spiral out of control. Olen and Pollack stress the importance of paying off your credit card balance in full each month. This not only saves you from paying unnecessary interest but also instils discipline in your spending habits.

Rule 3: Save 10-20% of Your Income

Saving regularly is key to building wealth over time. The authors suggest setting aside 20% of your income for savings. This may seem ambitious, but starting with any amount and gradually increasing your savings rate can make a significant difference in your financial future. The earlier you start, the more you benefit from the power of compound interest, allowing your savings to grow exponentially over time.

Rule 4: Maximise contributions to retirement accounts

Retirement may seem far away, but it’s crucial to start planning for it as early as possible. Olen and Pollack recommend using the full allowance for contributions to retirement accounts. These accounts often come with tax advantages, and the sooner you contribute, the more time your investments have to grow. It’s about ensuring that your future self has the financial resources to enjoy life after work.

Rule 5: Create an emergency fund

Life is full of unexpected surprises, and not all of them are pleasant. That’s why having an emergency fund is essential. Aim to save three to six months’ worth of living expenses in a readily accessible account. This fund serves as a financial safety net, protecting you from the need to rely on high-interest debt when unexpected expenses arise.

By following these first five rules from, you’re already well on your way to mastering the basics of personal finance. The beauty of these guidelines lies in their simplicity—they are straightforward, actionable, and effective. In our next blog, we’ll explore five more rules, which will further solidify your financial foundation. 

Remember, financial success doesn’t have to be complicated. By focusing on the essentials, you can achieve your goals with confidence and ease.

Stay tuned for Part 2, where we’ll dive into the final five rules and continue our journey toward financial mastery.

Here’s one of the hardest (or least asked…) questions when it comes to financial planning:  “How much is enough?”

It’s a simple question, but one that most people never stop to consider. We’re so caught up in the race for ‘more’ that we forget to ask ourselves why we’re running in the first place. It’s a vital question that we need to ask, so much so that Paul Armson wrote a book about it –  “Enough? How much money do you need for the rest of your life?”.

It challenges us to rethink the very essence of financial planning. It’s not about amassing the biggest fortune; it’s about funding a life that brings you joy and fulfillment.

Imagine for a moment that money wasn’t a concern. How would you spend your days? What experiences would you seek? What impact would you want to make? These are the questions that lie at the heart of Lifestyle Financial Planning.

Traditional financial planning often feels like a never-ending pursuit of more. More savings, more returns, more assets. However, Armson argues that this approach misses the point entirely. After all, what good is a hefty bank balance if it doesn’t translate into a life well-lived?

Lifestyle Financial Planning flips the script. Instead of starting with products and strategies, it begins with you – your dreams, your values, your ideal lifestyle. It asks, “What does your best life look like?” and then builds a financial strategy to support that vision.

This approach suggests that true wealth isn’t just about money in the bank. It’s about having the freedom to live life on your terms. It’s about achieving ‘financial independence’ – that magical point where work becomes a choice, not a necessity.

But how do we determine what ‘enough’ looks like? It’s a deeply personal question, and the answer will be different for everyone. For some, it might mean having the resources to travel the world. For others, it could be the ability to start a passion project or spend more time with family.

The key is to dig deep and get clear about what truly matters to you. What experiences bring you joy? What achievements would give you a sense of meaning and value? What legacy do you want to leave? Once you have a clear picture of your ideal lifestyle, you can work backwards to figure out the financial resources needed to support it.

This shift in focus from accumulation to lifestyle has profound implications. It frees us from the endless treadmill of always needing more. It allows us to make more intentional choices about how we earn, spend, and invest our money. And perhaps most importantly, it aligns our financial decisions with our personal values and life goals.

Adopting a Lifestyle Financial Planning approach doesn’t mean abandoning sound financial principles. It still involves budgeting, saving, investing, and managing risk. But these tools become means to an end, rather than ends in themselves. They’re employed in service of funding your ideal lifestyle, not just growing a bigger pile of money.

Lifestyle Financial Planning offers a more holistic and fulfilling approach to managing money. It encourages us to think deeply about what we truly want from life and to align our financial decisions with those aspirations. It replaces the anxiety of “never enough” with the confidence of knowing exactly what “enough” looks like for us.

It’s a tool to help you live the life you desire. So, what does “enough” look like? That’s perhaps where the true financial journey begins.