How much money is enough? this is the question that comes to our mind especially when we want a peaceful and secure future.
I think of my retirement and always calculate how much side income money I should keep in my bank account and how do I generate a passive income that keeps filling my pocket.
I have seen many people spend a luxurious life and later struggle for money in the 40’s and ’50s. If they would have saved money and invested in the right system then I don’t think so that they would struggle at that age.
Before you gauge the money that you should be having in your pocket for monthly expenses, you should know what are your actual expenses and what are the expenses that you are making for no reason.
Yes, we cannot estimate the expenses that incur unfortunately but we can keep some sort of cash for this.
Table of Contents
- How Much Money Is Enough?
- How Much Money Is Enough To Retire?
- How Much Money Is Enough To Be Happy?
- How Much Money Is Enough For Lifetime?
- How Much Money Do You Need To Have A Comfortable Life?
- How much does it cost to live for a family of 4?
- Can minimum wage support a family?
- Is 50k a year a good salary?
- How Much Money Is Enough To Never Work Again?
- Important Tips On How Much Money Is Enough.
How Much Money Is Enough?
Honestly speaking, every individual in this world has their own need and wants to have a perfect life balance. Some need less money to overcome their poor life and some want enough money to live the rest of their life with their family and go out for a vacation.
This means each individual carries different dreams and wants in their life.
To know how much money is enough to be happy you need to note down what are the unnecessary expenses that you can cut down and how much you can save on a monthly basis.
Then, list down all your expenses that include all necessary things. This will bring you the actual money you actually need to have a peaceful life.
But, is this much money enough for retirement?
Who doesn’t want early retirement? I am also planning for early retirement. But It’s easy if you don’t do it perfectly.
Do you think saving money can get you a happy retirement? My answer is NO. saving money in your entire life cannot bring you a happy retirement.
The money that you save today will not worth the same tomorrow. The value of money decreases every year.
So, what’s the best method?
The best way to get enough money for your future is to start investing. I am not advising you to invest directly on anything and get into a loss.
No, you need to know what are your specialty and find out what business you can start and automatize so that you can start getting passive income.
Do you think 1 Million in your bank account is enough?
May be No, because one million will not stay with you forever. You will use it one day and then what? You end up having no money instead of becoming rich. This is where passive income comes into role.
- Passive Income Ideas to Make Money
- Psychologists say they’ve found the exact amount of money you need to be happy.
- How To Make Money Without A Job
- How much money do I need to make to never work again?
How Much Money Is Enough To Retire?
I don’t know why people ask this question for retirement. Why don’t they ask how much recurring income is enough to retire?
I have seen people gone through this stage. They had enough money in their bank and enjoying retirement. But one day all the money is gone due to some reason and now they are doing a daily job.
Today we have money but tomorrow we don’t. That made me start this blog where I can earn recurring income even if I don’t work for the entire month.
My strategy is to work hard now and build different sources of income rather than keeping the money in the bank.
I don’t like to keep money in the bank. Yes, I do keep but a small amount because I am working hard to build a good business so that money keeps coming to my bank balance.
This is the reason I don’t save money. I prefer to invest in startups so that I get enough money for my retirement.
Right now, I am planning to have at least $30,000 monthly just from a passive income source for my retirement in the next 7 years.
But, at the retirement stage, I will not stop doing business because this is my actual hobby. I love to do what my hobby is.
How Much Money Is Enough To Be Happy?
A normal person having the most common life balance without having loans or credit card debt. For him/her $7,000 per month should be enough to be happy.
If I would ask you the question, will you be happy enough to have $1 million in your bank account? Most probably your answer will be yes.
What if I would ask another question, will you be happy enough by having $1 in your bank account? Your answer will be no.
Who wants only $1 as the bank balance.
If you somehow got 1 million, you are definitely going to use it. If you have no other source of income then you may use all your savings one day.
Your savings will not be the same entire life. You need to have income coming to your pocket from multiple sources.
If you think you gonna save money in your entire life to enjoy your 50’s, 60’s then I would say it’s a good idea.
You are sacrificing your life on saving money to enjoy your old age. This is crap.
You know saving money is not a fun game. No one likes to save money. I am not saying to spend money on partying, clubbing, buying expensive cars, etc. This is complete No.
Make one hour a day from your entire routine and do something that you like and of course bring money to you.
One day you may come up with an idea to start a business. Here, the money comes into the picture.
This is the time when you need to use your money and get enough income to have a happy life.
How Much Money Is Enough For Lifetime?
If you spend $2500 with a 3% increase in spent due to the inflation rate so, for the next 50 years to survive you need a $3,383,906.02 balance amount with you.
You need to ask yourself a question about how much money is enough for you to live monthly and how long you are going to stay on this planet.
Obviously you shouldn’t be having an answer. No one can estimate how much money is enough for a lifetime, but If you are making enough money to satisfy your life then you should be thinking how you can keep this amount of money coming to you continuously for the rest of your life.
How Much Money Do You Need To Have A Comfortable Life?
It differs from country to country. The expenses at one location are not the same as another.
In Tier 1 countries, you need to have at least $2500 to have a comfortable life. This excludes rent and debts.
In Tier 2 countries, you need to have at least $1000 to live a comfortable life. Again this excludes room rent and debts.
At this stage, you must have a normal life balance with a good income to support your expenses.
Having a comfortable life is good but you should not go to your comfort zone if you want to make enough money.
You need to understand what you can do in your life that can bring your life stable and comfortable.
I am not advising you to do any kind of unethical practice. You need to work on your dream and strive for success to make it come true.
Yes, it’s not easy but doing the job and working under someone else is also not easy. Why don’t you be your own boss and do something in your life?
I was also at the same stage as working under my boss and stick to the clock. This is not what I wanted to do. Then, I started working on the side at home for myself while doing my full-time job.
It’s been difficult at the start, but if you put in hard work then you will surely achieve success one day.
How much does it cost to live for a family of 4?
The cost of living depends upon country to country. If you are living in the U.S in the city like Texas or Louisiana then your cost of living with a 4 member is around $60,000 a year.
There are cities like California, NewYork or San Francisco where the cost of living is high. Having a 4 member family in these cities may cost you around $150,000 a year.
It also depends on you and your family expenses. So, it is better to note down your monthly expenses and some expenses that occur rarely in a year and create your yearly cost expense plan.
The calculation that I have shown, is for the one who is having normal and life balance. If you are passionate about buying expensive cars then you need to have your own budget calculation.
Can minimum wage support a family?
A single working person alone cannot support a family. With having a 4 member in the family at least two members should work to support a family.
Even a single person cannot survive easily with having a minimum wage and working 8-9 hours a day.
There are various expenses occur when you live with a family. Expenses are house rent, water bill, energy bill, car or bus cost, food expenses and many more.
To manage these expenses minimum wage may not be enough. One member must need a helping hand of another member in the family so that they could easily survive with the least expenses.
Is 50k a year a good salary?
It depends upon which cities or countries you are living in. If you are living in a city like Texas or Louisiana in the U.S, then it’s a pretty good salary. You can have a good life balance without any hustle. This applies to a person who is living an independent life.
But, locations such as Washington, NewYork, or California, the cost of living is high. The salary of $50k may not be enough. There are people who find a cheaper way to survive on a small budget like sharing a room, buying food for less price and getting a walkable distance job. Otherwise, you need to have at least $70,000 per year to have a good life in these cities.
There are countries where the cost of living is super cheap. There, a single person can even survive on $10,000/year amount. This huge gap is because of cheaper food, clothes and house rent. These countries comes under underdeveloped or developing lists.
How Much Money Is Enough To Never Work Again?
To never work again you must have consistent income coming to your bank balance. If you are thinking that I would say some exact amount should you have in your bank balance then any answer will be wrong.
Your entire money can go away in any situation. I would pray this situation must not come to anybody’s life but still, we should prepare for a better future.
The whole idea that I am trying to explain in this entire article is that you should have a side recurring income. It can be a passive income or income from the business being a passive partner. Whatever.
Who wants to work? Everyone in their life wants to enjoy life go out on a vacation and so on.
The reason why I am emphasizing in side income is that you can have a good life balance today as well as in the future.
Though it’s not easy, you have to work today if you never want to work again in the future. So work hard, spend some time learning new things and start doing something on the side.
Go for startups and invest a little money for an experiment. If you find success consequently, then you are ready to set up a new source of income that will not only make you stronger but your loved ones too.
Important Tips On How Much Money Is Enough.
I want to make it clear that, no money is enough for any single individual. People have feelings and multiple desires in their life. And to match it they get into multiple expenses.
The correct question is how much recurring income is enough? If you are having a normal life balance then you should be having at least $4,000 or more with a good amount of increment a year.
If you are not doing a job but still you want to have enough money then you must work on generation multiple sources of income.
This is difficult but isn’t impossible. There are people I have seen who become a millionaire. One time they don’t even have money to afford a car and now they are a millionaire. This is because of their hard work and commitment to themselves.
If you commit yourself that you have to achieve something at a particular time then it’s best to divide a small task on a per-day basis so that you reach your goal on time.
This is how I work. I complete the task that I have assigned to myself no matter what. I don’t go to bed if I don’t complete my task. This is the secret to my success. The only thing that matters is commitment.
Founder of twomillionways.com
MBA – London
I am here to share my ideas and experience on how to make real money.