How much is enough?

Posted in Blog
27/05/2018 Mduduzi Luthuli

When planning your finances for your future, have you ever been asked, “How much is enough?”.

In and of itself, this is a near impossible question to answer! Financial advisors will often try and help their clients answer this question by addressing their needs, and then trying to put a figure together of what that ‘enough’ looks like.

But perhaps, there is a better way – and perhaps your financial advisor shouldn’t be the first person to ask you this question. At Luthuli Capital, we try to rather begin by allowing our clients the space to ask themselves this question with their partner or family. We find then that it’s no longer a mathematical estimation; it becomes a conversation of the heart and ethos of your family.

Yes – it’s easy to sit down and help you work out what you need based on your expenses; but we’d rather you had some time to think about what you really want, discussing what’s actually important to you. Saving for your future, having goals and a strategy in place cannot merely be needs-based, because it won’t be sustainable. Sure, your needs will play a role in this conversation, but we find that if we can start to ask questions in the context of what you (and your family) want… your strategy and plan will be considerably more sustainable, because we will be able to design it together.

One of the approaches that we learn from nature, is that ‘enough’ is not really a factor when preparing for the upcoming winter. Remember our squirrel friend from our recent blogs? She doesn’t sit and think about previous winters, or how much she eats in a day – she gathers and grafts hard so that she won’t simply have enough, she will have more than enough! It’s not about the number; it’s about the fulfillment of the journey.

We have the benefit of not being squirrels, and we can apply articulated strategies to our goals and financial planning. But if we start from the natural imperative to make the most of our ability to store up for the future, and keep our family provided for today, our conversations won’t really include the question; How much is enough. Our conversations will be refreshingly intrinsic, our planning will be enthusiastically goal based and our end-game will be a future that we have worked towards together.

So when you begin to sit with your family and ask yourselves ‘How much is enough?’ – be prepared for a conversational journey, not a number – and know that this is okay!