What is ‘being rich’ for you? What do you need to live as you want?This question may seem trivial but it is not at all. It is necessary to quantify the amount we want in order to be convinced and motivated to obtain it.
Money Options in the Right Way
Money, you will agree with me, has no value in itself (unless we want to bathe in money like Uncle Scrooge). It is more important to understand what money is for us.What is the ideal of life that we could fulfill by having more money? Here is the right question to ask that will help us understand what wealth is right for us.To understand how much money you need, you need to understand what you specifically want to spend it on. Make a visit to www.vimeo.com/jamesscholes1982 in this case.
Try this exercise:
- Imagine the life you want in detail
- Make a list of the things you will need to pay to support the standard of living you want
- Give each of the things on the list its cost (or the cost you assume it has)
Here’s an example of things that might be on your list:
Food (do you want to dine every evening in luxury restaurants? Do you want to buy high quality organic food from trusted producers? Ask yourself these questions to understand what monthly amount you will need to meet your needs)
Rent / Mortgage
Clothes (how many new clothes do you want to buy per year? and per month? do you want few and high quality or do you prefer to have more choice?)
Automobile (do you want to change it? which model would you like?)
This is just one example of the list of things you may want in your life and money is needed for.Add it to your liking and then make the sum of the money you will need to get it, also understand the taxes and savings and you will have the right wealth for you.
Warning: When planning how to reach that figure, be optimistic but realistic. You can expect to earn twice as much as last year, but (barring unforeseeable situations) it will be difficult for you to go straight to quadruple.
Keep in mind, therefore, that you will be able to reach the right wealth for you in a few years and that time will not be the same for each of us.Let’s start.
Revenues are higher than costs and grow more than expenses
On the basis of the historical yields of the American stock exchange, the 10 thousand saved every year at the end of the 10 years and with this income-expenditure dynamic, have become 102 thousand in the worst hypothesis, 323 thousand in the best. The median stands at 173,000.