Money is either consumed or saved. How much you consume equals your standard of living today. How much you save determines your ability to maintain that standard in the future.
The Green Line
The green line represents what your current standard of living (consumption) will cost over time, adjusted for inflation. Due to inflation, we need more money in the future just to maintain our current standard of living.
The Red Line
The red line represents how far into the future you can maintain your current standard of living. This calculation factors for current cashflow, ratio of savings, retirement age and rates of return.
When the red line covers the green line, you have achieved financial balance. However, this means your financial model can only support your current lifestyle and doesn't account for unexpected future life events. In fact, 98% of financial models are out of balance.
We're Here To Help You
Whether you're in balance or not, when you work with BetterWealth you will gain Clarity, Optimize Cashflow and have Accountability for future outcomes.