Elementality for Financial Advisors | Elements Financial Vitals System™ cover image

Talking With Your Clients: A New Way to Look at Budgeting

Elementality for Financial Advisors | Elements Financial Vitals System™

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Scaling Up Spending and Net Worth

They discuss the phenomenon of scaling up spending as income increases and how it affects one's net worth and retirement calculations. They share personal experiences of reaching various spending thresholds, such as buying a second car or a bigger house, and how it leads to continuously higher spending. They also introduce a measure called total term, which calculates the point at which one's net worth is sufficient to sustain their current spending.

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