A question that I often get from my colleagues is “Is there a such thing as enough money?” Unfortunately, this question stems from a mindset of scarcity instead of a mindset of abundance. It comes from a feeling of worry about lack of money instead of a feeling of assurance in factual calculations and a healthy financial state. My friends, this is a prime example of the teflon effect vs the velcro effect, and I have come to witness this across all income levels.
Due to scarcity beliefs about money, there are people making six-figure salaries and yet, they feel broke and they are not sure where their money goes. This is referred to as the teflon effect (the money does not stick).
On the other hand, there are people who make far less but they uphold an abundant mindset and as a result, they make appropriate financial calculations to make sure enough money is flowing. Unlike those with a scarcity mindset, they believe that there is a such thing as enough money and that it’s attainable! They feel comfortable with their financial situations and they even have bank accounts that reflect their money staying in their accounts, which is the velcro effect (it sticks).
Our mindset should be of financial abundance, so the question we should really be asking ourselves is: “how much money is enough for me to live comfortably?” Unlike the question asked earlier in this post, there is a calculation that can be done to produce a solid answer. When an answer is calculated for the individual, he/she can work toward financial freedom.
Making financial calculations and having the right numbers to stand on are imperative because they make for better planning and financial stability, and they create a positive belief about money. Below, I have shared a formula for calculating how much money will be enough for comfortable living I learned from Clayton Morris.
Calculate your monthly budget, including the following:
- Home/Car/Renter’s insurance
- Entertainment/Fun (movies, eating out, Netflix subscription, etc)
- Car Payment
For demonstrative purposes, let’s set your monthly budget to $5,000. That’s your survival number (the minimum amount needed to live currently). However, a higher amount is needed for your comfortable dream life. The dream life amount is 10% in addition to the survival number. In this case it will be: $5000 x 0.1= $500. This would make the dream life number $5,500.
In this example, if your monthly income is $5,500 or more, you are all set. No need to fret (that was an accidental rhyme). If you should need more, you can work overtime or pick up extra shifts. Otherwise, you can relax as long as you’re making your dream number [or more!].
In my case, I decided that working in real estate is the best way to get passive income outside of my day-to-day job. If you’re interested in real estate, stay tuned for my next blog as I will be sharing how to find out the number of properties needed to gain financial freedom.
Now, it’s time to get you in a mindset of financial abundance and find your freedom number! How much will it take for you to live comfortably? I encourage you to put what you have learned from this blog post to the test. Self-experimentation is the key to opening up new possibilities in your life. Give it a try and you might be pleasantly surprised!
Do you struggle with work-life balance? Do you want happiness and fulfillment in your medical career, family life, and finances? I can help! I have free breakthrough coaching consultations available for this month. Click this link to book.
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