When it comes to making money, how much is enough?
Chances are you don't understand the secret language of money and the "money story" it has been trying to tell you since you were born, says David Krueger, author of The Secret Language of Money: How to Make Smarter Financial Decisions and Live a Richer Life.
Answer the following two questions with a single, specific figure ....
1. My current annual income is __________.
2. In order to insure financial contentment, with no more money problems and worries, I would need to make _________.
Krueger claims to have given this quiz to hundreds of people. In almost every instance, their answers indicate that they would need to make about twice their current income to feel happy and free from money worries.
In other words, once those who earn $50,000 achieve their hoped-for $100,000 goal, they quickly revaluate, admitting that it would probably now take about $200,000 to make them happy.
Even when you change the numbers, the story remains the same, he maintains. Just about everyone says: “I need twice as much as I actually have to be happy.”
It doesn’t take a genius to figure out that always raising the bar like this isn’t likely to have a happy ending.
But making peace with our moving target isn’t about learning how to aim better, or creating a fixed target that doesn’t move even after we hit it, he argues.
The key to a successful money story begins with determining not what it is you want to have, but who it is you want to be, he says.
Is he on to something? Do you struggle with this sort of moving target? Are you content with what you have? How do you balance the two?
By Gordon Powers, MSN Money
Posted by: Craig | Nov 10, 2021 5:01:41 PM
He's absolutely right. Feeling 'rich' is about margin, not income. It's how much you have left over after you've met your financial commitments. If you have a surplus, you feel rich. The more income we make, the more financial commitments we take on (bigger house, 2nd car, 2nd property, etc.) so we never truly feel like we have money left over. Simplify your life and you will feel rich (and reduce your stress levels in the process).
Posted by: Jack | Nov 10, 2021 7:03:41 PM
My numbers are:
1. My current annual income is $235,000 (including bonus, but not stock options).
2. In order to insure financial contentment, with no more money problems and worries, I would need to make $120,000.
I certainly don't set my sights higher than I need, even though my income is at the low end of the scale for my profession.
Posted by: War | Nov 11, 2021 11:27:28 AM
I absolutly agree with Craig and Jack. Both have the same thinking as myself. I think people need to stop shopping for things they don't need and focus on building a savings acct, and/or an emergency fund etc. Once those are established one feels a whole lot more secure and content..going to work for my $60,000 a year is not so bad if i have no debts. I get to feel more "rich".
Posted by: James | Nov 12, 2021 9:14:41 AM
I make about $80,000a year and have a saving of approximately $300,000. No morgtgage and no other liabilities. I wonder whether I am on the right track for riterement? I am 43 years old and my wife is 33 years old.
Posted by: Ross | Nov 12, 2021 11:09:16 AM
I just left a $90,000 a year job. I can comfortably live on $60,000 a year and maintain my savings pace. Just have to find that $60,000 a year job. I want to lower the unnecessary stress in my life. No need to live like a King. Been there done that. At least in my mind. It's all relative.
Posted by: bob | Nov 13, 2021 11:12:18 PM
ohhhh boy
Posted by: ashlay | Nov 16, 2021 10:05:55 AM
@James,,,,you'd better up that savings....your relatively young wife is soon going to start looking for a younger guy to "fill" her needs if you know what |I mean. That 300,000 dollars will quickly be cut down to 150,000 .... 'tis the way of the world my friend. Brace for it.
Posted by: Lisa | Nov 16, 2021 11:08:03 AM
I agree with Ashlay. James you're future is in big trouble. You would have been fine had you stayed single.
Posted by: Western Guy | Nov 16, 2021 2:13:18 PM
Wow bitterness abounds in here. James it sounds like you are on a good path so keep at it and don't worry about the bitter singletons raining on your life. It amazes me that when people fail that some of them are so sensative that other's success is an affront to them. James let me wish you the best of luck and happiest of lifes.
Personally I make enough that I know I will eventually get to financial security with no money worries, the main ingrediant for me will be time. That doesn't mean I'm not ambitious about increasing my earnings to reduce the time it takes but I understand it is all going to work out.
P.S. I am also very happily married to a wonderful girl.
Posted by: Jeff | Nov 16, 2021 2:45:44 PM
Oblviously Ashley and Lisa are those type of women? Anyway to speak to the article yes, I would love to make twice my annual income (net that is) to feel more content. Unlike the others that answered my income is significantly lower than many and I have a mortgage and family to support. If I were to have no debt then I would have to bring home about another $800 per month to keep the type of lifestyle I would enjoy (and no, that is not with any type of fancy holidays or expensive gadgets, I am still old school and enjoy reading a book over many of the more fancy activities).
Posted by: Lisa | Nov 16, 2021 4:04:54 PM
To answer your question Jeff, I"m happily married. However, I have seen way too many divorces around me. (Aren't we somewhere near a 50% divorce rate in this country?? I could be wrong. I hope I"m wrong.) Anyway, in every case, I've seen the woman take the guy for the money. You see, everyone needs money and in most cases that I've seen, the guy makes alot more money than the woman in the relationship. So, when she leaves, she gets vindictive and the court systems have fun. The guy ends up with little to nothing, when all is said and done. Maybe James will get lucky. However, I won't be surprised when he's on a blog saying he's been had.
Posted by: Lisa | Nov 16, 2021 6:55:30 PM
By the way "Western Guy"...NOONE's successes are an "affront" to me. I am always happy when others succeed...even egotical males like yourself. What I don't want is to see others fail because I know the hurt of failure, and I know I could have been warned, years ago, but I wasn't. I simply don't want others getting into the same problems. I"m hoping you can understand this...and good luck to you.
Posted by: Western Guy | Nov 17, 2021 2:11:31 AM
Lisa
1. There isn't a word called noone. It is no one. Also no such word as egotical. I think you were after egotistical. Lol.
2. To quote you "James you're future is in big trouble. You would have been fine had you stayed single". You call that a warning? All the guy said was he was married to a younger woman and out of debt. You must admit you couldn't even possibily begin to understand his situation and that your comments above are obviously bitter and completely uncalled for.
3. I might also add that your treatment of James and calling me an egotistical MALE shows that you have a tendancy to insult the other gender. I have simply said that I consider my wage sufficient and that I value education. Where does that indicate a huge ego?
4. Lisa you have said in other topics that you struggle financially and it seems apparant from your gender issues that you likely have rather large issues with relationships. I feel I have struck a good balance with both and therefore all I am here to do is to promote people to live successful and happy lives the best way that they can by sharing and giving advice. If that offends you then maybe it isn't the advice that is the issue.....
Posted by: Dani_in_BC | Nov 17, 2021 7:16:36 PM
I make about $16,000 a year (total income) working my butt off to support my 2 children and myself. I would love to make enough money to put a descent meal on the table every night.
You people who make anything above the poverty line and complain that you need more make me sick. Go hang out at food bank or homeless shelter and then tell me you "need" more money.
Posted by: Lisa | Nov 18, 2021 8:12:51 AM
Sorry Western Guy that my typing isn't perfect all the time. (I'm sure YOU ARE perfect all the time. lmao) Oh, by the way, I just forgot to put quotation marks around the term Western Guy. Just letting you know before you take me apart again.
Yes, YOUR life seems to be perfect. YOU are God. Congratulations! For the rest of us "smucks" down here, I'm saying, here's some advice on what NOT to do. I believe there's MORE than a 50% chance that James and YOU and possibly me (oh, wait a minute, I'm female, so I get to take MY husband to the cleaners...lol), so not me, will be had, and I don't want that to happen (to James).
As far as males go, "Western Guy," I actually have a greater respect for that gender. Hard for YOU to believe, isn't it?
By the way, I agree with "Dani." Western Guy. try to make some time out of your perfect life to see how the other side lives. You might actually get a GREATER appreciation for your life.