At the recent passing of a very wealthy client I spent time reflectingon of what money was all about. He had a very sizeable estate which was left to his two children as he had just lost his wife to a terrible disease shortly before he died. All he had at the end of his life was a lot of money.
He hadn’t found the time or real reasons to enjoy the benefits whilst he was alive.
Money is a means to and end
Money on its own is just money. So if you focus on money all your life all you will have at the end of your life is just money. Money should translate in to an objective to be meaningful, otherwise, “What’s the point?”
Understandably, money is needed to maintain our lifestyles but as you move through your life cycle is your money providing enjoyable outcomes along the way?
Peace of mind is the ultimate
When you really think about it we all just want peace of mind at the end of the day. We take comfort in the knowledge that we have enough provisions to maintain our lifestyles no matter what happens along the way. It doesn’t mean that we have to provide for an excessive lifestyle either. Contentment can be found in maintaining a very ordinary lifestyle not worrying about your financial future, Still being in a position to take those holidays, send your children to school, buy the car etc.. all without worrying about how you are going to pay for it.
Aim for something realistic
So, it becomes more important to clearly define what your lifestyle objectives are and then start to save towards them. It takes a hard and realistic conversation with yourself to discover what you really want
and then why you want them. The higher you aim the more you will have to provide for over time. So, the answers will be found in compromising on the size of the house and car eventhe type of school for the kids. Things you can comfortablyafford within your means which lead to enjoying yourself and sleeping well at night.
Enough versus Excess
Catering for a moderate lifestyle is more realistic and easier to cope with as it is probably far less stressful and demanding than providing for than an elevated one. It boils down to providing ENOUGH to enjoy your life along the way rather than giving up so much more to enjoy EXCESS somewhere in the future.
Read more from Paul Roelofse at www.investforlife.co.za