Money is an essential part of life that everyone strives to accumulate. The amount of money people make is often a measure of their success and status in society. However, at what point can someone say they have made enough money? The answer is subjective and varies from person to person. In the book “Psychology of Money” by Morgan Housel, the author discusses the concept of enough money and provides indicators to help individuals determine when they have made enough money.
Indicators to know when you are making money:
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You can cover your basic needs comfortably: When you can comfortably afford your basic needs, such as food, housing, healthcare, and transportation, you have enough money. According to a survey by the National Bureau of Economic Research, the income threshold for a comfortable living for an individual in the United States is $60,000 per year.
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You are debt-free: Being debt-free means that you have paid off all your debts and loans, including credit card debts, student loans, and mortgages. According to a report by the Federal Reserve, the average household debt in the United States is $137,063.
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You can pursue your hobbies and interests: When you have enough money, you can pursue your hobbies and interests without worrying about the cost. According to a survey by the Harris Poll, 72% of Americans have given up hobbies and activities they love because they couldn’t afford them.
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You have a comfortable retirement plan: Having a comfortable retirement plan means that you have saved enough money to retire comfortably without worrying about financial constraints. According to a survey by the Employee Benefit Research Institute, 64% of Americans are not confident they will have enough money for a comfortable retirement.
Money is an essential aspect of life, but it should not be the sole measure of success or happiness. Having enough money means different things to different people, but the indicators discussed above can help individuals determine when they have made enough money to stop striving for more. It’s important to remember that having enough money does not guarantee happiness or fulfillment, and there are other factors to consider, such as personal values and relationships
