One of the biggest questions we are asked on a daily basis is, “How much wealth do I need to keep me financially independent?” What is the “core wealth” necessary for me to maintain the lifestyle I wish to live, now and in the future? The methodology we use is the Wealth Building Formula®. You’ll recall the three funnels  I talked about previously. Many times people just hope there will be money left over after the third funnel, and, too often, those who ask this question aren’t confident there will be. The Wealth Building Formula® provides individuals with benchmarks on how much wealth is needed and the way to make the 100 percent correct financial decision to grow and retain that wealth.

Benchmarks are common practice with well-run companies: Apple and other successful companies all have financial benchmarks or key performance indicators that allow them to assess things like: Are we doing better than our peers or worse than our peers? Are we hitting our targets? Among these benchmarks might be earnings per share, return on equity, or other metrics. But as singular people, we don’t live our financial lives based on earning per share. In fact, most people don’t even know how much is necessary for them to save. Long-term investment-return objectives aren’t part of their financial vocabulary. Too often, they just hope things will work out. What individuals need is a target and plan, and from that target they’ll be able to determine the benchmarks necessary for informed and correct financial decisions.

That’s where the Wealth Building Formula® comes into play. Using our specialized formula, we determine the goals of our clients in exact numbers and create a clear process to reach those goals, along with check-in points along the way.

For more information on your own personal Wealth Building Formula®, visit tswealth.com.