Our current education system unfortunately does not teach us how to use money that we earn and every one that comes out of school or college has to learn this art on his own. Some learn fast and get good at it while others struggle their entire life working out how much is needed. I had some great learning on this apse ct as part of some very good education I received through my business experience.
I thought I should share these guidelines for those who are still not sure on how much one needs in terms of money:
- It really comes down to the lifestyle one prefers. So if I need a swanky car and a sprawling mansion I will need much much more than someone who does not bother much about an affluent lifestyle.
- There are others who have traveling as hair passion and may not be particularly interested in homes and cars. However the amount of money required may still be high since international travel and accommodation do not come cheap.
- Once the lifestyle is decided for the amount of time it lasts, we can estimate the amount of money we need to sustain the required lifestyle for that duration. For e.g. If I wish to travel to many countries over the next 10 years I need to have enough money to get through my travels for that time.
- Wealth is therefore the amount of money needed to lead the desired lifestyle over the period of time it matters. So wealth is not a measure of the money alone. It is the time for which you can sustain the desired lifestyle. So if I have enough money to travel for the next 5 years, I am wealthy for 5 years.
- Using these guidelines, one can estimate the amount of money required and then plan how to put their money, jobs or business to create that wealth.
- So think of a reason however crazy it may sound and work towards achieving that. The more intense the purpose, the more non negotiable will be our work ethics to achieve the goals we have set for ourselves. The purpose could be personal, social or a combination of both.
So list out the dreams and go about planning the assets needed to fulfill those dreams!!!!
We will know our true potential only when we have non realistic dreams!!!!