Do you have “enough” money? A study found that the ideal income for a typical American family to have “emotional well-being” is around $60,000 to $75,000 annually.1Source: Nature Journal of Human Behaviour
In an interview, Warren Buffett said he would be “very happy” with $100,000 a year, despite his billionaire net worth.2Source: CNBC Meanwhile, John Bogle, the pioneer of modern index investing and founder of the Vanguard Index Fund, says “enough” is “one dollar more than you need.” Which I think is also a good definition.
The truth is that “enough” depends on our personal circumstances.
Money is an emotional subject, not a rational one. A multi-six-figure earner can feel they’re overwhelmed with material desires. While someone earning a fraction of that can feel perfectly satisfied with their life.
It’s all about what we think we need.
Here’s a thought experiment for you: Categorize all your needs.
That will help you to improve your relationship with money. There are several ways you can do this. Here’s an example: