Do you dream of being richer, but struggle with being able to answer the question “How much money is enough?”. If so, you are not alone. The fact is that most women want to be richer, but have no clear idea of how much money they need to consider themselves rich, wealthy or to simply feel like they have enough.
When it comes to achieving success everyone has a different vision and I urge you to define success for yourself. If you don’t define success for your success it is easy to end us chasing someone else’s vision, achieving that vision of success and then still not being happy.
For most people money is a key component in their vision of success and I always encourage women when they are setting their goals to include a financial goal. If you don’t think you need a financial goal then read Why you need a money goal.
Hopefully, you have decided that setting a financial goal is important but the question is “How much money is enough?”.
To answer this question I would urge you to look at The Fulfilment Curve. I first came across the idea of The Fulfilment Curve in Your Money or Your Life by Vicki Robin and Joe Dominguez. The idea behind The Fulfilment Curve is to examine the relationship between money and fulfilment.
There have been numerous surveys that show that more money only brings you more happiness and fulfilment to a certain point. Therefore, it is important that you don’t get caught up thinking more is always better because after a while it usually isn’t.
According to The Fulfilment Curve, there are three stages that money provides for:
- Survival
- Comforts
- Luxuries
SURVIVAL
In the beginning, money is primarily used to ensure our survival. It will be addressing your most basic, and essentials, needs. Money will enable you to have shelter, eat and be warm (via clothing and heating).
COMFORTS
After your basics have been covered you will start using your money to making your life more comfortable and enjoyable. This can include things to make your life more convenient (a bicycle) or to bring joy (toys).
LUXURY
Then you can start to use your money to buy real luxuries. Additional properties, cars that aren’t bought for practical reasons, designer items of clothing. At this stage, you are likely to be buying purely because you want the item rather than it answering an actual need in your life.
When you are in the survival and comforts stage more money is likely to bring your more fulfilment. You are addressing real needs and this brings you happiness. However, once you are into the luxury stage you need to keep a close eye. You need to work out for you if all of those luxuries are still bringing you happiness and that happiness outweighs what you have to do in order to make the money to buy the luxuries.
HOW DO YOU KNOW “HOW MUCH IS ENOUGH?”
Now hopefully the three stages make sense, but you still might be thinking “But I still don’t know how much is enough?”. The fact is there isn’t a science to calculate the figure. The key is to ensuring that once you get into the luxury territory it is able being conscious around your purchases and ensure you aren’t buying more just for the sake of it.
I hope you have found this blog post useful. I would love to know what stage you currently feel you are at.
And if you liked this blog post, but would like to dig deeper into working out what rich actually looks like in terms of numbers then you should read “How much money do you need to be rich or wealthy?”
