How Much Money Is Enough?

November 26th, 2010

Can you have too much money?
It’s often said that “money cannot buy you happiness”. But “neither can happiness buy you money”. My friend is accumulating a lot of money at the moment but sees that happiness is going out the window fast. At this point in time, she is willing to sacrifice the money to regain some happiness.

What’s the deal with money and happiness?
We find that half the population pursues happiness without regard for money, while the other half chases money without regard for happiness. Recently I also read an article on an Austrian who is giving away his $5 million fortune because he realizes that money has not made him happy. I have been trying to make sense of this interplay between money and happiness for the better part of my adult life. I cannot claim to have all the answers but here are some of the observations I’ve made working closely with people and their money.

Love of money
Do not fall in love with money. There is a perception that “money is the root of all evil” but I believe that it is rather the “love of money” that is the root of evil. If we believe that evil will drive out happiness, we then need to prevent evil by not falling in love with money.

Take it slowly
Accumulate slowly and do not rush after money. When love of money dominates your life, you will find yourself rushing after it at all cost and cannot get enough of it.
This is well illustrated in a movie in which Danny de Vito plays the role of a guy who ruthlessly goes about mergers and acquisitions to accumulate great riches. When someone asks him why he keeps wanting to have more, he blurts out: “You don’t understand, he who has most, wins.”

How much do you need?
Determine how much you need and start accumulating. If we imagine money and happiness being on the two opposite ends of the balancing pole, we need to define the things that will help create a balance between the two. If you find it hard to be happy without “enough” money, it follows that you have to determine how much “enough” is. Decide how much you need to save and accumulate to maintain your desired lifestyle now and in the future.

Goals and aspirations
Get onto the same page and share goals and aspirations. We see a lot of relationships ending late in life due to people not being on the same page. To get onto the same page requires agreeing and committing to shared goals and aspirations. Throughout the years I have noticed couples seeming to agree on future goals but not displaying enough commitment in achieving these goals. The wife would buy one more dress because “I have nothing to wear” and the man would buy one more tool “because I need it”. When we later entered their closet or garage, we could find evidence of personal indulgences rather than of sacrifices being made. To get onto the same page as your life partner, you need to be truthful, not only to your partner but especially to yourself.

This entry was posted on Friday, November 26th, 2010 at 7:04 am and is filed under Economy, Finance, Money, Personal / Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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