Lifespan and Money
Social scientists like the term life cycle. I’ve taught a class in life-cycle economics.
Life cycle helps us define financial needs and provides a measure for financial wants.
Lifespan is the modern term that captures the similar constraint we need when considering money. Lifespan is finite.
For some, too finite. Uncertain, but with bounds.
I like age 100. For my grandchildren, 110 might make sense. Longevity science brings hope.
But, longer lifespans bring financial crunches. Knowing about our money and lifespan will fix the crunch, or at least help us plan for it.
Money’s role?
We are built with the opportunity and ability to earn money. Take your current age, the type of job you might hold, the physical rigor of the job, and your preference for work and time off, and we can predict lifetime human capital. In Western countries, the number is larger than most know.
Throw in the prospects for an inheritance and government benefits, and you can arrive at a set of resources over your lifespan.
Let's set up a call if you want to know your or your household’s number. 📞
We know why people save money.
Great economists have explained why people save in terms of lifespan and uncertainty.
Savings for retirement
Savings for a rainy day
Savings for a major purchase
What does this mean for me?
You have your spending and savings numbers for the balance of 2025. Every individual or household has their number.
Your number defines your achievable money happiness. The number is fairly certain and well understood defines your spending cap for the year.
Even better, in the process of learning your achievable money happiness, you will know your highest sustainable living standard, which considers lifespan.
Every personal finance writer should produce essay after essay discussing lifetime living standards. Few do.
I am taking this further for my subscribers. Come on board and go deeper with your money.
A free initial call to discuss how a baseline financial plan can benefit you and your family.
In this call, I’ll discuss the information you need to gather (not too much) and how you can proceed with different levels of coaching. You choose how involved you want me to be.
You maintain your relationships with your financial advisors. I offer no investment advice and take no “assets under management.”
Substack paid subscribers receive a 25% discount on my Teach:able coaching.
