You Have “Enough” Money When You Can Afford 2 Needs

Something is more important than money

Do you have “enough” money? A study found that the ideal income for a typical American family to have “emotional well-being” is between $60,000 to $75,000 annually.

In an interview, Warren Buffett said he would be “very happy” with $100,000 a year, despite his billionaire net worth. 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:

• Security — Having an emergency fund, a nest egg, and being financially free.
• Loved ones — After establishing one’s own financial…