Enough is the point where you’re not worried about money. It’s the point where you can cover emergencies. Where you live comfortably, preferably debt-free. You have a high standard of living and enjoy life.
You may have heard that $75,000 is enough money. Kahneman and Deaton found that life satisfaction and emotional well-being went up as income increased. However, beyond $75,000 a year, life satisfaction and emotional well-being didn’t continue to rise significantly.
It’s a tricky question, and I’m here to tell you that only you have the answer for you. Most people can make six figures work and work well. But they still need to budget. Because you’ll always want or need more.
It could be a little too much if you live in fear that people want to take it, or you define yourself by an amount of money. Jack Bogle pointed out in his book Enough that Bernie Madoff earned more than $100 million a year but still didn’t have enough. He wanted more, and it ultimately led to his demise.