Financial Base/Foundation: Financial base, I typically define as the amount of money in the bank. It should be worth 12 months of expenses at the least in the 20s decade of a human being. In the 30s decade, it should be 24 months worth. In the 40s decade, it should be 48 months worth and in the 50s decade, it should be 10 years worth at least. In the 60s decade, as much as is required for the rest of the life, should be held in the bank account in secure investments like Fixed Deposits etc.
Financial Momentum: Financial Momentum is the increase of financial assets (net worth) per unit time. It’s essentially the derivative (the slope of the tangent) of the net worth vs time graph.
Decisions in life have to taken based on Financial Base, Financial Momentum as well as the present age and considering the slippery slope fallacy of how human temptations derail the human’s track of progress.
The best way is to continually be on the track of progress and minimally (very sporadically and selectively) experience in singleton events or phases, the human pleasures that if done in excess may lead to the dopamine drive mechanism being shifted to them instead – leading to the activation of the slippery slope fallacy.
Hence, its best to limit the human pleasures [Refer to “Life is an Act of Balance”, “The Slippery Slope Fallacy”], as they may lead to the derailment of the Net-Worth Vs Time Graph totally.