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How much is enough?
With the boomers retiring and the property market and sharemarket heading down of recent times, I got to thinking - how much is enough?
We all try to build our wealth, without really knowing how much we need to be able to stop and enjoy it!
I was chatting to Lisa about this and Bandwidth noticed and wrote this:
"Noticed your comment, on Lisa's page, about how many properties is enough the general feeling is 7 properties.
It all depends on the $ if you want to live on 80K a year you need 1M at 8% return puls 500K to ensure the nest egg grows or at 6% you need 1.35 plus 600k for growth.
Property tends to double every 10 to 12 years so if you have a 1.5 M portfolio and 12 years to wait then you are in the ball park. At the end of the 12 years you will own 1.5 and the bank 1.5 :-) "
What do others think? How much is enough and what defines financial freedom for you?
KBot
We all try to build our wealth, without really knowing how much we need to be able to stop and enjoy it!
I was chatting to Lisa about this and Bandwidth noticed and wrote this:
"Noticed your comment, on Lisa's page, about how many properties is enough the general feeling is 7 properties.
It all depends on the $ if you want to live on 80K a year you need 1M at 8% return puls 500K to ensure the nest egg grows or at 6% you need 1.35 plus 600k for growth.
Property tends to double every 10 to 12 years so if you have a 1.5 M portfolio and 12 years to wait then you are in the ball park. At the end of the 12 years you will own 1.5 and the bank 1.5 :-) "
What do others think? How much is enough and what defines financial freedom for you?
KBot
Tags: investing, money, retirement
Views: 1
Replies to This Discussion
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Permalink Reply by Bandwidth on -
Thanks for the compliment of using my comments Kbot.
A book worth reading on this subject is Strategies for Fiancial Freedom by Van K Thrap
My view is work the numbers backwards eg
When do I want to be finacially free
How much does that mean per year
How much of a buffer do I need
How much extra do I need to ensure my nest egg grows
What is the expected return on my investment
So what $ amount does that work out to be
Then you can make the statement " I will have a net worth of $???????? by the time I am ?? years old"
A definite goal with a time frame :-)
Aim high because even if you fall short you will still be closer to the goal. If someone says you will never achieve that say "do you want to bet" :-)
The $ amount then becomes a measure of success as opposed to a pure financial number
A major trap is, I want to have financial freedom in 10 years. The 10 years will keep moving forward so in 5 years the statement will still be true eg "I want to have financial freedom in 10 years" and still not sure what financial freedom means.
BTW I have made and exceeded such a goal 3 times :-) so it works.
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Permalink Reply by Tony Aloisi on -
Nothing like a goal or a list to get you going places.
But I think what Kbot is getting at is "can we ever have enough?"
I think not. I think it's inherent in us to keep striving for more. We're greedy little critters, us humans :)
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Permalink Reply by Tony Aloisi on
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Maybe insatiable is a better word than greedy!
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Permalink Reply by Bandwidth on
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Insatiable is fine and I love the challenge
Those who don't have complain those that do strive
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Permalink Reply by Matthew Reader on -
Kinda like those who can, do, while those who can't, teach.
[apologies to any teachers out there :)]
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Permalink Reply by Bandwidth on
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A different way of looking at the same question :-)
One is outcome focused the other a philisophical debate. Both are good
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Permalink Reply by Bytta on -
i heard about some successful people whose lives winded down once they achieved their ultimate goals. They became less motivated and some even moved to depression.
"can we ever have enough?" doesnt only apply to money, but other aspects of life.
Bill Gates will not make more $$ than before now that he's a full-time world saver.
All those billions probably dont make his life richer and he feels the need to relinquish some of the money to make him "richer"
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Permalink Reply by Bandwidth on
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I feel it is best described by Maslow's heirarchy of needs. Until we reach one level we have trouble even seeing the next
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Permalink Reply by Tony Aloisi on
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You mean this?
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Permalink Reply by Bandwidth on
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Yes that is the model. I can be taken further once self actualisation is achieved
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