Finish Lines
Setting Finish Lines – Just How Much is Enough?
If you are reading this, you are almost certainly “rich” by historical and world standards. Up until late in the 18th century, the typical life was one of survival, not abundance. Thomas Hobbs’ famous quote about lives in a state of nature being “solitary, poor, nasty, brutish, and short” was written in 1651.
Then something miraculous happened. Global wealth began to skyrocket.
People will point to different underlying causes, and we can debate the ultimate distribution (and redistribution) of that wealth, but we are the direct beneficiaries of that wealth creation. During the past 30-some-odd years, extreme poverty has been cut radically around the globe (both in percentage and absolute terms). That said, there are still 700 million people living at or below the extreme poverty definition.
Having had the luck of being born in the United States and to be alive during the 21st century, we are fortunate beyond measure. According to the UBS Global Wealth Report from 2024, if you have a wealth of more than $100,000, you are in the top 20% of the global population. And if you have more than $1 million in wealth, you are in the top 1.5% of global wealth. Let me restate that: $1 million in wealth puts you in the top 1.5% of global wealth. Ruminate on that for a moment.
In that context, you are almost certainly rich.
With that said, $1 million is also not “a lot.” In many cities, $1 million can be a “starter” home.
So, again, just how much is “enough”?
Have you ever looked at your Social Security income history? If you look back to your first handful of years in the workforce, and compare it with your most recent year of full-time work, there’s a really good chance that you are making 2, 5 or perhaps more than 10 times what you once made. It can be somewhat mindblowing to consider!
Now, I know inflation is real, and it has been eating into some of those increases. That said, it is common to see an increase in real, after-tax take-home pay over the years. As that occurs, what happens with our lifestyle? The tendency is to have lifestyle creep!
As humans, we have an almost insatiable desire for more. The field of psychology often refers to this as the “hedonic treadmill.” As we gain more, we tend to want more. It used to be a subtle desire to “keep up with the Joneses” down the street. Today, it’s more like trying to keep up with the latest “influencers” on Insta-Tik-Book. Worst of all, it doesn’t appear to increase happiness.
Others of you have rejected the YOLO (you only live once) mantra. You’ve adopted the Puritan work ethic and have committed to getting ahead by deferring gratification. Doing this for a lifetime can make it very, very difficult to allow ourselves to enjoy what we’ve worked so hard for.
I’m sure you’ve heard the phrase, “You can’t take it with you.” Sometimes it gets translated to a bumper sticker on an RV, such as “I’m spending my grandkids’ inheritance.” Sure, it’s said tounge-in-cheek, and no one should be demeened for enjoying the fruit of their labor.
So clearly, there is a balancing act to pull off; an eye of a needle to be threaded.
Ever wonder where the you “can’t take it with you” phrase comes from? Perhaps from one of the letters written to Timothy.
Paul writes in 1 Timothy, “But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evil.”
The author of Ecclesiastes writes, “Moreover, when God gives someone wealth and possessions, and the ability to enjoy them, to accept their lot and be happy in their toil—this is a gift of God. They seldom reflect on the days of their life, because God keeps them occupied with gladness of heart.”
Contentment with what we have today; not some vague day in the future. And the ability to enjoy our good fortune.
We each have different lifestories. Some have had the proverbial wind at their back. And some have faced gale-force headwinds. Yet each of us can choose contentment today and enjoy our personal good fortune.
This article is ostensibly about setting finish lines. So, practically, what does that look like?
Is it a number, like those old ING commercials? Is it a monthly cash flow amount? Perhaps it’s becoming debt-free?
When you reach those finish lines, what will you do with the excess? This is the crux of the problem. If we aren’t intentional, the inevitable outcome will be the ratcheting up of the hedonic treadmill! Will we travel the world? Will we help our kids and grandkids get a start on life? Will we begin or increase our giving to causes that we’re passionate about (or better yet, will BECOME passionate about)?
There are two things that have helped me in my own efforts (and I’m far from perfect!):
- Be intentional about unplugging and getting out of the rat race. For my family, that’s a day of Sabbath rest and enjoyment. We slow down, largely avoid expenditures, and put the devices away so that we are present in the moment. In my experience, this practice and rhythm help remind me of what is truly important. At times, I must say “no” to attractive opportunities, but I realize I’m prioritizing the most important.
- Give. Give of your time. Give of your resources. Acts of generosity DO something to US, the giver. We have all heard that it is more blessed to give than to receive. Apparently, it isn’t just a saying! There are many studies showing that giving leads to greater personal satisfaction. Perhaps the act of giving reminds us that we have “enough” and that we are fortunate. We may not be at the very tip-top of the global wealth pyramid, but we are certainly near Mount Everest base camp levels!
As I conclude, I hope that I’ve stirred some thoughts and provoked a conversation or two. For those of you who have intentionally set “finish lines,” I would love to hear your experiences. For those of you who want to dialogue about what this might look like in your life, we are happy to be conversation partners!
Sincerely,
Craig Smith, CFP®, CFA®, CKA®
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
