Your wealth is not just what you own today like FD, stocks, Real estate etc but also what you will earn in the future. And when you are young and far from retirement your total wealth is far more than what you own today. Finpin calls this SPEND CAPITAL, your true total wealth. While this is ignored by all advisors, visualizing one’s spend capital is a critical aspect of your life’s money journey. It’s the pitcher that will fill all your glasses of expenses. Finpin will guide you to calculate that amount for you.
Your Spend Capital at any point in time is the sum 4 capital values – Income Capital, Asset Capital, RE capital & Inheritance. Asset Capital, RE and inheritance is simply the value of your existing assets and any inheritance.