Blogs

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If we want to achieve anything important in life, it always starts with what is our ‘why’ and how strong is it? For some of us, that comes naturally, they couldn’t think of anything worse than be having to stay in the workforce until they die. Or having to exit the workforce, but not being able to afford much because the age pension and superannuation will never go very far. So, it’s really understanding what is your why.

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For some people, they never think of investing, and you might need to question yourself to consider, ‘What will your life look like, do you think, if you never invested? Describe to me how your life would be when you’re aged 65 if you don’t invest’. And sometimes that’s what people need to understand their purpose. Once you’ve got a really clear purpose, you can become more naturally driven to make more responsible and more sophisticated financial decisions.

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To break down your purpose, you need to think about what stage you’re at in your life and how this matches up with your ability to rely on their investments as a sustainable financial income, whether that be right now, or in the future. And then think about what sort of activities will you do. And in today’s dollars, what would that cost from an annual income point of view? And from there you can work backwards to see how big an asset base you need to fund that lifestyle.