How much money do you need in a lifetime?

How much money do you need in a lifetime? Or rather how much money would be enough for one to lead a reasonable life? There is a simple answer, and a difficult one. I calculated the simple one, based on average spending per month, multiplied by, say, 50 yrs, depending on how you spend, it can be anywhere between S$1mn to US$20bn. For me, it is roughly S$3mn (S$5k (monthly expense, including mortgage) x 12 (mths in a yr) x 50 (years) = S$3mn). That's easy, because it is based on my assumptions of what is enough to lead a reasonable life today, undoubtedly, these will change for people in different phase of their lives. So the difficult question is, what constitutes "enough to lead a reasonable life" for everyone. There is no answer, because everyone has different assumptions and the assumptions change over time. For an average Singaporean, with a monthly pay of S$2k, which they spend most of it, that number is close to S$1mn. For Bill Gates, that may be US$20bn.



But is it important to know how much you need in a lifetime? Yes. Knowing one's own spending capacity is probably the most important aspect in personal wealth management. It is both the basis and goal for investment and wealth management. It allows you to understand your financial needs and how you should go about fulfilling those needs.