How Much Money is Enough Money? (2024)

Money. We all want it, we all need it, but does it actually make us happy? As someone who can’t imagine a life where I do not need to worry about it, I decided to do some digging. This is what I found.

First off, let’s dispel a common myth: more money makes you happier.

This is only true to a certain point. Research shows that people who earn more than $75,000 per year are generally happier than those who earn less. But once you reach that threshold, more money doesn’t really make a difference. You won’t be any happier if you make $250,000 than if you make $100,000.

So, how much is enough money? Well, that depends on your lifestyle. If you’re a minimalist like me who’s happy living in a tiny house and eating ramen noodles, you can get by on a lot less than someone who wants a big house and fancy cars. Generally, $100,000 per year is a good goal for most people. It’s enough to live comfortably, take vacations, and not stress out about paying the bills.

Of course, this is just a rule of thumb. If you live in a high-cost-of-living area like California or New York, you might need to make more than $100,000 to be comfortable. A lot more! And if you have a lot of debt, you’ll need to make more to pay it off. But the point is, once you have enough money to live comfortably, more money won’t really make you any happier.

Now, you might be thinking, “But I want to be a millionaire! I want to buy a Lamborghini and a ton of Bitcoin and…” Hold up. Do you really want those things, or do you just think you want them because society has taught you that they’re symbols of success? Remember, the key to happiness is not more money, but rich and meaningful experiences. Traveling, trying new foods, meeting new people, and doing things that you love — these are the things that will bring you true happiness, not a bigger bank account.

Most people just want to be comfotable. We want to wake up and not have to worry about our tuition or rent or other bills. Once you realize that, depending on your lifestyle, this goal can be achieved by less than 6 figures, your perspective on money will change. You will start to focus less on making more money, and more on making just enough money to suit your needs.

And if you’re still not convinced, just remember the wise words of rapper Notorious B.I.G.:

“Mo’ money, mo’ problems.”