First Step in Financial Planning: Calculate Your "Enough Number" (2024 Latest Guide)
In this article, you'll learn:
Knowing How Much Is Enough Matters More Than How Much You Have
If you knew you needed NT$40 million in your lifetime, would you still want to earn NT$80 million?
Most people would answer: Yes.
Next question: Is it realistic? Are you confident? Do you have a plan?
Most people would also answer: No.
So, of course, dreaming is wonderful and hope keeps us going — but does wishful thinking follow, or an actual plan?
Assuming you retire at 65 and start working at 25 — that’s 40 consecutive years of working. With an average annual income of NT$1 million, your total lifetime income could reach NT$40 million.
Could NT$40 Million Be Your Lifetime Income?
If we’re talking about salaried work — without extra income sources — NT$40 million might be most people’s entire lifetime earnings.
Before discussing “needs,” let’s first think about whether it’s “enough.”
If that NT$40 million is enough for you to buy a home, live comfortably, enjoy leisure activities, and retire — do you really need to pursue even more money?
If your answer is: Yes.
Then what’s the action plan? How much mental energy and time will it cost? Can you accept that?
If your answer is: No.
Then what would your lifestyle look like? If you can accept it, what kind of life would that be?
Many People Live Without Financial Goals
People who just want “more, more, more” actually lack a sense of financial purpose — because they’ve never understood the concept of “enough.”
The ultimate satisfaction is, of course, “being comfortable right now.”
But being comfortable now doesn’t guarantee comfort later. That doesn’t mean you have to live in hardship right now — but it shows a lack of planning in how you allocate your money. Without a plan, money management usually becomes a mess:
When there’s money, you spend it. When there’s no money, you earn it. When you’re short on cash, you borrow it. And then it’s hard to get back to having money again.
Knowing How Much Is Enough Matters More Than Having More Money
If you knew you needed NT$40 million in your lifetime, would you still want to earn NT$80 million?
Most people would answer: Yes.
Next question: Is it realistic? Are you confident? Do you have a plan?
Most people would respond: No.
So, of course, dreaming is wonderful and hope keeps us going — but does wishful thinking follow, or an actual plan?
Assuming you retire at 65 and start working at 25 — working continuously for 40 years with an average annual income of NT$1 million — your total lifetime income could reach NT$40 million.
Could NT$40 Million Be Your Total Lifetime Income?
If we’re talking about salaried work — without additional income sources — NT$40 million could be most people’s lifetime earnings.
Before discussing “needs,” let’s first think about whether it’s “enough.”
If this NT$40 million is enough for you to buy a home, live comfortably, enjoy leisure activities, and retire — do you really need to pursue even more money?
If your answer is: Yes.
Then what’s the action plan? How much mental energy and time will it cost? Can you accept that?
If your answer is: No.
Then what would your lifestyle look like? If you can accept it, what kind of life would that be?
Many People Live Without Financial Direction
People who just want more and more actually lack a sense of financial purpose — because they’ve never understood the concept of “enough.” The ultimate satisfaction is, of course, “being comfortable right now.” But being comfortable now doesn’t guarantee comfort later. While that doesn’t mean you must live in hardship right now, it reveals that there’s no allocation plan for how you use your money. Without a plan, money management usually becomes chaotic: when there’s money, you spend it; when there’s none, you earn it; when you’re short, you borrow it — and then it becomes very hard to get back to having money.
Financial Planning Is Like a Complete Health Checkup
Financial planning is like a comprehensive full-body health checkup. Just as a health checkup examines various parts of your body to ensure there are no underlying health issues, financial planning requires a thorough review of your financial situation. This includes understanding your income, expenses, savings, and investment plans — and setting clear financial goals. Through this kind of financial checkup, we can identify financial risks and opportunities, and develop effective strategies to achieve our goals — ensuring overall financial health and stability.
Further Reading
Lazy Da’s Conclusion
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