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How Much is Enough? Maximising Wealth and Well-being, by Andrew Bradley, Arun Abey and Andrew Ford.
THIS book opens with the fundamental question, possibly the most fundamental question every adult must answer: “How much money is enough to provide me with the financial freedom, happiness and contentment I desire and deserve?”
This question gets to the heart of the existential clarity that few ever achieve, but no one ever dies fulfilled without answering.
Both Andrew Bradley and Arun Abey are very senior wealth managers and, as such, have a predictable slant on the question – you must have enough money for you and your loved ones to live a fulfilled life.
Undoubtedly, they have seen many whose lives were hobbled by not having “enough”, and as wealth managers see many lives that were hobbled by having so much, but not enough happiness and contentment. This has provided them with a perspective that makes their position very credible.
“This book explores the key behaviours that contribute to happiness in life and financial success,” the authors explain. It is not possessing an extraordinary IQ, nor being born into wealth that will ensure your happiness and your feeling of financial accomplishment.
There are no end of wafer-thin TV shows that mislead viewers into thinking that money buys happiness, and that fulfillment comes from an expensive watch and car. Rather, there are key behaviours, ways of deciding and acting, that will lead to this success.
In South Africa, suicide has risen 48% in the last 10 years, and the biggest-selling drugs treat depression, anxiety and stress. These extreme indicators point to a society that is feeling tragically unfulfilled. This is despite living in the most wealthy and technologically-endowed age in human history.
The first half of the book focuses on the “the Bridge of Well-Being” that has little to do with money, and everything to do with what will make you feel fulfilled. This part is dedicated to coming to grips with what is important to you, and provides some useful guidelines to how you might achieve these goals.
They offer a number of steps that are relatively easy to implement, and identify the traps you will definitely recognise.
Three pillars to well-being
There are three pillars to the Bridge of Well-Being according to the authors: defining and understanding your values and goals; applying your resources (of all kinds) to achieve your goals; and developing an investment strategy.
Clearly, having money is central to so many people’s feeling of well-being. If you cannot pay your creditors, feel inferior to wealthier people and are afraid of how you will live when you can no longer earn, you cannot have a feeling of well-being, even with an expensive watch and a car.
“You need to develop a financial plan for yourself – not for your money.” As so much of the book explains – it is for yourself, not for your money or for neighbours.
The centrality of money in our lives is neither bad nor good, it is simply a life necessity that is unavoidable, not unlike air and water. However, money is hardly “a neutral medium of exchange” (the traditional economic definition); rather, it is a highly-charged emotional issue that hits hard at the core of our self-image, sense of social standing, self-worth, and more.
Even if you have come to terms with the role of money in your life, “who is teaching your children about money?" the authors ask. When we realise the role that money plays, it becomes clear that we should feel as uncomfortable about where our children get their money education from, as we do about where they get their sex education from.
The chapter entitled “Kids, Money and Happiness” goes some way to address this issue, as do many keen insights on the topic scattered throughout the book. If you think this is only for parents on a tight budget, consider the paradox of affluence: “It produces kids who are remarkably sophisticated and spoilt, while at the same time they are more dependent, anxious and directionless.”
At the other end of the financial spectrum, the authors have a collection of attitudes to money of some of the wealthiest people in the world. Natie Kirsh, an extraordinarily wealthy South African, explains that “one of the big advantages of being rich is I can help people… It is the only pleasure I have of being rich.”
Raymond Ackerman's attitude to money
Raymond Ackerman explains his philosophy of “doing good is good for business”. Professor Muhammad Yunus’ compassion led to the development of the Grameen Bank, which offers the lifeline of micro-loans to the desperately poor to pursue life-saving micro-businesses.
The second half of the book focuses on the need for a sound plan to ensure the feeling of well-being that comes from having enough financially. Key to their approach is a reliable, knowledgeable, professional guide. In this crucial area of our lives, leaving decisions to our limited experience and understanding is nothing short of dangerous.
I am reminded of the oil well firefighter Red Adair’s remark:“If you think it is expensive to hire a professional to do the job, wait until you hire an amateur!”
This is probably most evident from the common view of property as an investment. The chapter “The Puzzling Properties of Property” points out that because many of us own property we are deluded into thinking we know a great deal about it, and that property is a safe investment.
The authors debunk this view with solid evidence and explain why equities, correctly chosen, have universally outperformed property. Clearly great wealth has been made through property, but once again only by seasoned professionals, and like every other investment, with a particular intent over a particular period of time.
As you read this well-rounded book on securing one’s financial well-being, you will, as I did, learn much, and remind yourself of matters that have faded into the background. You might also, as I did, have an overwhelming desire to share the book with people you care about.
Readability: Light --+-- Serious
Insights: High -+--- Low
Practical: High --+--- Low
*Ian Mann of Gateways consults internationally on leadership and strategy and is the author of Strategy that Works. Views expressed are his own.
