View Full Version : How much do you have to have, to have 'enough?'
Life_is_Simple
3-7-11, 10:43pm
Is it X months living expenses?
Is it a specific number?
Is it an amount of money which enables you to work part time instead of full-time?
Is it an amount to retire on?
Is it a different amount, depending on your life circumstances?
I keep wondering what I'll think 'enough' is. I must not have 'enough' yet?
What are your thoughts? :idea:
$0, and the right attitude.
Question is to broad. Enough of what?
Enough to cover current monthly living expenses?
Enough of an emergency saving account?
Enough retirement savings?
Etc.
do some brainstorming to figure out where you are, what you are doing, where you want to go, and how you will get there financially. Then you can "try" to figure out enough.
$2 million right now, or probably about $5 million when I'm 65. Some amount less than this is probably what we would NEED, but I'm certain this would provide a more than adequate lifestyle. I suppose it wouldn't be the simplest lifestyle perhaps though we might use some of the yearly income for stuff like volunteer vacations, green home modifications, and the like. Of course, if I didn't have to work our food budget would probably go down but some other stuff might go up such as travel, pets, health care, electricity and water. Of course mortgage would be eliminated.
Enough would be to cover basics, comfort and a little luxury without having to work at all. Preferably without having to scrutinize every dime, though still keeping track of most of the dollars.
loosechickens
3-7-11, 11:48pm
To me, "enough" is far more a state of mind than something that can be assessed by any certain amount of money. Because I know people with millions of dollars in assets who feel they most certainly don't have enough, and others living on small Social Security checks who feel quite comfortable.
I'm a person who's usually, throughout life, felt like we had "enough". No matter WHAT the number was. Yet my sweetie, has just watched the number that represents "enough" to him, be ever adjusted higher, because as he reaches the goal he has set as being "enough", all of a sudden it no longer seems like "enough", and only a larger number will be "enough". I've watched this process in him go from "no debts and several thousand dollars in the bank" to "X number of hundreds of thousands", without ever reaching that feeling of having "enough".
He's finally getting over that, both because we've finally amassed a net worth where any reasonable person would think it "enough", and I can show him in black and white figures where we stand against the averages for U.S. household net worth, so he understands that it "not being enough" surely is in his mind, as opposed to any rational assessment. But in his heart, I'm sure that he thinks that "if we only had about 10% more, I'm sure THAT would be enough", although he won't admit that anymore because he knows I won't listen.
Financial planners will toss around numbers like "at least a million dollars", but the huge majority of people retire in this country with way, way less money than that, sometimes only a small fraction of that amount, and manage quite comfortable retirements. Almost half of Social Security recipents depend almost completely on Social Security for their total income. VERY few families come even close to that million dollar mark, let along several million.
What is 'enough' depends of so many things. Do you own a home (Do you need a home?), and is it paid for. What are your taxes? Where do you live and what are the local costs (food, housing, taxes, transportation, untilities, insurance...)? What are your expectations - base-line living or travel or ? How old are you and what is your health? How frugal are you really? There are so many questions that only you can answer - and then interpret the answers you give yourself.
You many not need a million, but you certainly need something. I was lucky and 'retired' before I reached 40. But then I am second generation 'financially independent' (but not rich) so I knew that it could be done and was familiar with the life-style.
Actually I never made the decision to retire per se, but rather quit my last job and took some time off. I never thought whether I had 'enough' or not. I always figured I'd go back to work at some time doing something, but I never have. Years later, I now never intend to work again since I know I can make it relatively comfortably.
That is always an option - if you think you have 'enough', give it a try, then if it doesn't work out for any reason, go back to work. Of course this would be very different if you currently have a job you like - but if that's the case, you wouldn't want to quit anyway. And if you do quit, it might be difficult to find a good job after taking a few years off. Or you could supplement with part time work.
I don't think it's a specific amount that's needed but rather self confidence that you can make it work with what you have, and that you can handle anything that comes along in an appropriate manner - and that includes returning to work if necessary.
Question is to broad. Enough of what?
I agree with sweetana3, your parameters are too wide for a specific answer. As I look only at my situation then I raise my eyes and look further about me, the answer to your question is that I have way too much of everything.
Interesting how some people think this question is too big and others think it is just right. I lean toward the just right side. To ask too narrow a question would rule out those for whom enough is not related to money, or time, or however they define it.
Now that I've chimed in on the quality of the question, I will admit I have no idea. I think I would tend to be like loosechicken's honey! This is something I want to get a handle on . . . what are some criteria that we could reach for me, or DH, to leave paid employment? A dollar amount? Our mortgage paid off? I really want to define this because we are kind of just churning lately. Anyway!! Good luck as you figure it out! I look forward to reading more replies on this one.
Ive always had enough. A roof over my head and plenty of food.
I'm pretty comfortable where I am and could be comfortable on a far lower income, except for two things: the driving need to maintain a rather large emergency fund, and the need to know I have health insurance. Actually, I'd say the need for health insurance comes first. Otherwise, I'd snap up the first fun, part-time job that came my way.
But yes, I have more than enough right now as far as income goes, and a big chunk goes into savings. I have enough stuff too - not too much at all, and I'm very happy with that part of it.
Well, I just retired. I feel I have "enough". What I didn't have before was freedom to do what I wished, when I wished, or how I wished. I now have time.... to me... the greatest gift! Financially, I would think, unless you had a huge amount of money, you would need to have a home paid for and no debt. That is where I stand...no debt of any kind. I figured how much I needed to live and guesstimated how long I'll live, and, hopefully, adjusted for inflation. I do not plan on a bare-bones existence so I factored that in as well. Time will tell. If I outlive my money at least I enjoyed my time while I still had my faculties (physical and mental).
$0, and the right attitude.
What attitude is that? Curious, because I'd like to feel that way rather than the need to put a specific price tag on it. The number could be amended and still be OK but maybe I do feel comfortable having something that's clearly defined? Maybe I've just done too much math....
Enough to go sailing on a 137 foot wooden sailing yacht.
:D
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Best,
Rodger Morris
Unitarian Jihad Name- "Brother Rail Gun of Quiet Reflection"
Mortgage paid off and another $200,000 in retirement would make me happy...I think!
I'll give you my personal experience: I quit work at age 42 for what I though would be a long sabbatical of about 5 years before depleteing alot of my savings and having to go back to work for a few years until my pension kicked in (could get at age 50 but had planned to wait until 55 or older). I had paid off my house, was debt free, and was able to use the VA hospital for free for medical coverage. I figured I'd need approx. $2,000/month to live on - $1,000 to cover my basic expenses like utilities, food, gas for the compact car, insurances and taxes. The other $1,000 was for "play & travel" money or for any other expenses. After less than a year I realized I really only used about $500/month for all my basic expenses and maybe another $500/month or less for my "play" money. Often times I didn't even touch my "play" money so basicly just needed the $500/month. That meant I could actually stay off work many years longer and that, if I sold my house and downsized, I could permanently retire with a paid for home, no debt and a fairly large amount of savings. It also meant that I could start taking my very small govmint pension 5 years early. So that's what I did. Now, almost 12 years later, I find this is still the case for me. I usually spend less than $1,000/month for all my expenses - basic and play - and haven't felt deprived at all. "Enough" for me is more about having the free time to do whatever I want in my life, when ever I want too.
In addition, I don't have any kids to leave my not-so-vast wealth to so have no problem using some of my savings principal when needed. So I don't need millions (or even hundreds of thousands) of dollars sitting in an account somewhere to generate interest-income to live on while trying to preserve the principal. I'm taking it all with me in the end...Brahahahaha!!
edited to add: the reason my expenses where so much lower (and continue to be low) than I thought they would be was that I didn't count on how much I was spending to go to work everyday. Not only the gas, toll roads, and wear and tear on my car, but all those little things like meals out, work clothes, having to hire people to do stuff that I now can do myself, etc... Going to work everyday cost alot! So by not working I ended up needing alot less money each month. Now my car will last 10 years instead of 5. I only need oil changes, tires and maintenance occasionally. I ride my bike everywhere I can so rising fuel costs don't really effect me - the more they rise the less I drive. I eat a bagel and coffee at home and save about $5/day just for that alone. Same with all my other meals. I mow my own lawn . I don't have cable or internet at home (now have time to use the free wi-fi at the library), all my activities are free or low cost. When I travel, I stay in low budget places (camp, hostel, budget motels, off season vacation rentals) and go for longer periods of time since much of the expense of travel is getting there, etc... So depending on your lifestyle, and what is "enough" for you, you can live very cheaply.
Life_is_Simple
3-12-11, 3:46pm
It is also pretty surprising when you start to think about how much it "costs" to go to work. It goes back to the notion of "real hourly wage." I had the same experience when I went from on-site work to self-employment.
It is so cool that you turned out OVERestimating how much things would cost. And you thought the money wouldn't last, but it did :+1: It almost makes me think that someone out there benefits from us thinking we have to work and work and work.
$2,637,189.67 , give or take a little. That's in today's money. You would have to add some for inflation if your not there yet.
ApatheticNoMore
3-12-11, 11:45pm
There are times I think I'd need 1.5 million to have enough. But I never will have that so :D
Wow! So many big numbers have been offered. I am in my 6th decade - still not totally retired, but working part-time which I love. However, many years ago I realized I would never amass a million plus dollars as the financial planners always say you will need. But I never worried about that because I have always felt I could take care of myself. The idea of "enough" is a mindset for people like me. In other words, I do plan and save, but I will fit myself into whatever monies I have. Part of my own mindset is knowing that $$$ does not make me happy. If I have a home or apartment and can afford a simple lifestyle, with a little vacation thrown in now and then - I'm a happy girl.
Some want enough money to feel secure and that can vary from person to person. Others have desires for a more affluent lifestyle. But, I think one of the great benefits of simple living is learning to live with less, and wanting what you have. If that is true, then having "enough" should be less, not more.
What attitude is that? Curious, because I'd like to feel that way rather than the need to put a specific price tag on it. The number could be amended and still be OK but maybe I do feel comfortable having something that's clearly defined? Maybe I've just done too much math....
I think the issue is on trying to "put a price tag" on "enough", YMOYL-style. Focusing on money/assets/stuff, rather than on social connections, skills, circumstances, and location.
I live in a spot with a serious amount of "poverty", and very high "cost-of-living", if measured traditionally. Yet, the climate is quite temperate, there's plenty of food freely gatherable from the sea and forest, it is easy to grow food here, and there's a great supportive network of people who wish to live simply and outside the traditional economy. I have plenty of friends who live well below the poverty line, but who have happy, fulfilled lives, and who don't express much of a desire for "enough" measured in money or stuff.
I waited to retire until I had "enough", YMOYL-style. I could have easily "retired" a decade or more sooner, if I'd thought things through more.
Ive always had enough. A roof over my head and plenty of food.
That's what I say.
It is also pretty surprising when you start to think about how much it "costs" to go to work. It goes back to the notion of "real hourly wage." I had the same experience when I went from on-site work to self-employment.
It is so cool that you turned out OVERestimating how much things would cost. And you thought the money wouldn't last, but it did :+1: It almost makes me think that someone out there benefits from us thinking we have to work and work and work.
Once I discovered YMOYL (after I quit work) and the idea of a "real hourly wage" my eyes were really opened. I still use the concept even in retirement. Keeps me on the right path - the one that means I don't have to schlep off to a job each day :-)! I will say that I am suprised that many people seem to need so much money (millions) and wonder why. Even choosing to live off the interest on a couple of million seems like a pretty high lifestyle. But then I guess medical insurance for a family can get very expensive. I'm curious what people actually spend their money on - especially those with high incomes - so spill people. Enquirering (i.e. nosey) minds want to know :-)!
I'm curious what people actually spend their money on - especially those with high incomes - so spill people. Enquirering (i.e. nosey) minds want to know :-)!
Roughly:
$Xk/year charity
$30k/year property taxes
$30k/year ammunition and firearms training expenses
$12k/year food and household supplies
$12k/year educational expenses
$12k/year insurance for property, autos, boats, liability
$10k/year medical insurance
$8k/year boat moorage, maintenance, fuel
$5k/year home repair/maintenance
$3k/year out-of-pocket medical expenses
$??? clothing, misc, travel
------
Too much
Roughly:
$Xk/year charity
$30k/year property taxes
$30k/year ammunition and firearms training expenses
$12k/year food and household supplies
$12k/year educational expenses
$12k/year insurance for property, autos, boats, liability
$10k/year medical insurance
$8k/year boat moorage, maintenance, fuel
$5k/year home repair/maintenance
$3k/year out-of-pocket medical expenses
$??? clothing, misc, travel
------
Too much
Thanks! I always like to see what people spend their money on beyond the basics. I can see why you'd need millions to fund your lifestyle though. Of course most of yours seems to go for property taxes (YIKES!!) and that little gun hobby :-)! Oherwise it seems like a fairly normal amount of $$'s Probably more than most (way more than cheapskape moi) but less than others.
enough to be happy? zero dollars
enough to have a roof over my head, food in my tummy, healthcare coverage, and some so called "fun" money for life.......i'd say... 300,000 dollars.
if you got people that love you, then you are pretty well set.
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