8th share: How much is enough?

Another question from our survey was “How much is enough? How can I rate my financial health myself?” Well a couple of places to start are:

1. www.moneysmart.gov.au has calculators to see how long your super (401K) will last, as well as compound interest and credit card calculators, plus much more. Some are basic calculators but there is also a financial health check.
2. www.yourmoneymistress.com has a “With compliments” page that gives you basic forms to fill out and start you thinking about your goals. The Scenario budget should be filled out twice, one for your present spending (which we aim to improve) and another for your desired situation in retirement.

Everyone has different requirements and thus different amounts for what is “enough”. The best way is to record what you spend now over a 6 month period which will enable you to accurately fill out the Scenario budget (ie do it in pencil then come back and adjust the figures after 6 months of recording). Remember that someone who can live on $500 / week will be able to retire earlier than someone who “needs” $1000 / week. Ultimately it comes down to the lifestyle we lead determining how much money we need, now and into the future.