For each of us, there is a financial position I like to call our ‘sweet spot’. I firmly believe that finding your financial ‘sweet spot’ is fundamental to achieving the lifestyle you truly desire.
This is the financial position that enables you to live life comfortably and on your own terms. It is different for everyone, so it is important to work out what yours looks like.
Let me share my example to explain this a little further. I am a naturally frugal person. This is not because I constantly deprive myself of the things I long to have. I just simply don’t really need that much in terms of materials things to be happy. I absolutely do not judge anyone for wanting expensive cars or designer clothes – I am just not motivated by those things and never really have been.
I am much more motivated by living a simple life, enjoying experiences rather than things. I enjoy being able to take my dogs out over the fields during the daytime when I choose to. I enjoy having lunch with friends or colleagues without having to watch the clock, or taking day trips to interesting places. I love to travel and, yes, this does cost a bit to do, but that is my choice of where I direct my money.
I could work longer hours, but I don’t choose to – I’d rather retain a lower level of spending and enjoy my time-freedom. That is my choice for my lifestyle. I don’t need £millions to be happy and have no wish to work myself into an early grave just to fund a more lavish lifestyle. I could spend money on expensive things, but I choose not to.
Whilst I don’t need a lavish lifestyle, I equally have no desire to let my income deplete to below a comfortable level because that would cut across my sense of well-being and enjoyment of life.
So, my financial ‘sweet spot’ is:
❖ having a good income that funds a very comfortable, yet modest, lifestyle and that is considerably more than my expenditure so that I always have a cushion and can invest surplus, and
❖ having a financial fortress of assets for additional peace of mind.
My overriding driver is ‘financial serenity’ – a place of financial peace and safety that enables me to live a life of ‘simple abundance’.
I know what amount I require to achieve this, both in terms of income and capital investments. I know my numbers well. I have worked hard to create a plan to achieve it and that determines my decisions, both in terms of how much work I do and what investment decisions I make. I am also very disciplined with my money plan. With every increase in income, I keep my spending figure static, thereby enabling me to invest surplus. I have been implementing this plan for well over a decade.
Does it take work to establish this? Yes of course, but I can assure you that it’s worth it to achieve the ‘sweet spot’ you desire. Now your ‘sweet spot’ may be much higher than mine. I don’t hide behind the fact that I spend very little because much of what I enjoy costs nothing, eg enjoying a cup of tea in the garden with my mum or being out with my dogs. I buy cheap jeans for everyday use because they often get covered in mud anyway lol!
I can afford designer jeans – I just don’t need them!
As I said earlier, each person’s financial ‘sweet spot’ is different. You may have different responsibilities and more dependants than I do. You may have greater outgoings that can’t realistically be reduced (although I would challenge pretty much everyone to be able to make at least one reduction in outgoings that they won’t miss!).. but whatever you need you still need a plan! Or at least most of us do because unless you marry into wealth or win the lottery, for most of us we must create our own wealth!
Now don’t get me wrong – although I truly enjoy the time-freedom to go out in the middle of the day with my dogs or to enjoy a long lunch with friends, I certainly don’t sit around the rest of the time. I still work hard, but on my terms and doing work I truly enjoy!
However, by knowing my ‘sweet spot’, I can guard against becoming a ‘workaholic’ – becoming ‘frazzled’ and exhausted making more and more money just for the sake of it without any real sense of purpose behind it.
When you discover your financial ‘sweet spot’, you will know exactly how many hours you need to work or how many clients you need to serve. You will know when enough is enough!
I have helped many people to discover their financial ‘sweet spot’ – the financial level that enables them to live a lifestyle that will bring them true joy, peace, and freedom. It doesn’t matter whether you begin this in your 20’s or your 50’s (I was well into my 40’s when I began to make a plan) – but the sooner you begin the sooner you can enjoy living in your own ‘sweet spot’ and reaping the rewards of your carefully and strategically executed income & wealth plan.
If you would like help with this in a confidential 1-2-1 setting, please email me at jackie@lawyertolifestyle.com.