How Can I Define “Enough” In My Financial Life?

As a financial planner for over two decades, I’ve noticed one thing that separates happy clients from unhappy ones: the concept of “enough.” Those who are fulfilled have a clear direction and excel at achieving goals. Social media and society often promote excess, influencing us to want more and create a life that’s not ours. While the concept of enough is both subjective and relative, I’m sharing how I help clients quantify what it means for them.

What I’m Telling My Clients

To begin, I recommend three steps to finding meaning beyond money. For decades, scientists have studied the correlation between money and happiness. While the research conclusions vary, the general consensus is that people who find happiness outside of money can use money more effectively as a tool to build a fulfilling life.

1. Create a Life Vision

Before you dig into the numbers and goals, it’s important to ask yourself thought-provoking questions. This process can uncover the why behind your goals and possibly change your money mindset. What drives you? Are you playing a comparison game or staying true to who you are?

2. Put the Vision in Perspective

Once you have decided on a life vision, work with your financial advisor to determine the amount needed to fund it. Gather financial data to assess your current situation and establish benchmarks. From there, you can set attainable goals and develop a plan to make your vision a reality. 

3. Discover the Possibilities

If you have a long, winding road ahead,  consider more immediate pivots to get on track. For example, this could mean paying off high-interest credit card debt before focusing on long-term investing. Base this on your core values from your discovery process. If your path is more straightforward, explore strategies to reach your goals sooner. For example, investing your bonuses instead of spending them.

If you are fortunate enough to have more than enough, separate your assets into two buckets: core and excess. The core bucket can include a generous buffer and/or insurance to cover potential risks, like long-term care. The excess bucket can be used to improve the lives of others, both during your lifetime and at your death. Revise your estate plan if needed. Manage investments in each bucket to align with your goals.

The Bottom Line

Our clients entrust us to guide them toward financial success. By recognizing the concept of enough—and its impact on our decision–making—we can lead our clients to a fulfilled life. Utilizing tools designed for our expertise helps ensure that our clients’ visions are not just words in a written plan, but lived experiences.