When I was younger I used to love Birds Angel Delight. So much so that I would buy a packet and a pint of milk, make up the mixture (butterscotch flavour was my favourite) and eat it all at once.

But I noticed that something happened as I was eating it:

First spoonful: Best thing in the world, ever!

Spoons 2-10: Really good.

Spoons 11-15: Good

Spoons 16-20: OK

Spoons 21+: I am starting to feel sick

I learned this the first time I ate a whole packet by myself.

And yet, for some reason, I still occasionally repeat the experience!

Of course, this phenomenon doesn’t only occur with food. This is a well-documented economic principle called Marginal Utility, and (you guessed it) it applies to money, too.

Just like any food, beyond a certain point, having more money will not lead to more security, freedom, and happiness.


The academic literature on this is clear.

So why do we devote so much of our time, energy, and attention to having more?

I think there are 2 reasons: fear and greed.

I can’t do much about greed – in my experience, you just can’t reason with greedy people!

But I can help people who are frightened because they don’t know whether they have enough.

A simple lifetime cashflow forecast will show people whether they have enough money to live their desired lifestyle and a good financial plan will help them if they are falling short.

Do call Magenta for a friendly chat if you are not sure if you have enough.