Now that you’ve determined the upper limit of your money set point, it’s time to figure out what your lower limit is. The process for this is different. You could start by using numbers as we did in Day Nine. But this set point is more related to lifestyle than numbers.
To determine your lower limit, you need to look at how you live. What your values are. One way to think about this is to imagine that you are suddenly laid off. Or your business takes an unexpected down turn and your clients are disappearing. What are the absolute basics you refuse to give up even when you have a setback?
Each of us has a different idea of what we consider basics. And even if we do suffer some kind of catastrophic financial setback and lose everything, without even really thinking about it we set about to recover with those basics in mind. We’ve all heard stories of millionaires losing it all and then ending up millionaires again. Those stories are excellent examples of set points in action.
The way you see your set point is to identify those aspects of your lifestyle that you would sacrifice other things to keep in place. Today, take a look around you. At how you live. At what you own. At what you spend your money on.
How much of that do you consider non-negotiable? Absolute basic necessities? That no matter what happens you will not give up? Or, if you do have to give up, will be a top priority when you’re back on your feet? For some it’s home and neighborhood, for others it’s a gym membership and organic food. Or the ability to travel.
Make a list. Pare it down to absolute essentials for you to feel comfortable in your own life and situation. Then do some research to see what you’d need to bring in to live that way. Write that number down. That’s your lower set point.