Money, a means to an end or an end in itself?

Its important to maximise our physical, personal and financial resources,
to make them work for us, if we are going to achieve your goals.

This week I talk about your financial resources.

Money is a means to an end

by Jeremy Deedes | Living Money

Summary

Need to max resources, make them work for you, if you are going to achieve your goals.

Three types:

  • Physical
  • Personal – MBS
  • Financial

Talk about financial this week

Financial

So, your money is the fuel that drives your life

Money a means to an end, not an end in itself

An individual who sees money as an end in itself will measure portfolio performance by how much it has beaten a benchmark or an index. The individual who sees money as simply a means to live a fulfilled life will measure portfolio success by the degree to which it helps her to achieve her life goals.

Personal financial management is all about balancing two objectives and two risks:

Short term goals

Long term financial security

Short term stock market volatility

Long term inflation

Structuring you finances to achieve this is art the heart of your financial life plan, and involves well thought out allocation of your income into spending and savings and your capital into low risk and higher risk assets.

How you allocate should depend on your short, medium and longer-term life goals and the implications of those for your expenditure plans now and in the future. Thats why, if you get it right, the result is nothing less than freedom.