First, we have to break down what enough means. Are we talking enough money to pay your bills? Enough money to go on vacation? Enough to retire? Enough annual income? Enough wealth? What is enough for your household?
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.
Is there such a thing as too much money? Maybe. It depends on your mindset. If you’re looking for money to make you happy, you might be disappointed if you have “too much.”
It’s not really about an amount of money. It’s more about cash flow and how much money you keep, which leads to enough satisfaction. Moreover, today, it’s really about the financial independence that money can bring.