How Much Do You Really Need?
I was working with a client last month who's income has increased dramatically these last few years. Yet it still wasn't enough. Now that she was earning six-figures, she wanted to do more with her money than she had ever done. As a fun exercise, we sat down and filled out these numbers:
1) How much should she be saving monthly to fill up her emergency savings account? 2) How much should she be saving annually so she can retire at age 60 or 65? 3) How much would she like to spend monthly on alternative care (acupuncture) or vitamins that aren't covered under health insurance? 4) How much should she save so she can buy a home within 5 years? 5) How much would it cost her to go on one fantastic vacation a year?
After filling out these numbers, we were able to come up with a number that she needs to earn every year. It was quite empowering! Try it for yourself and see what happens.