When will you have "enough" money

Based on the most insightful WSO discussions, the concept of "enough" money is deeply personal and varies widely depending on individual goals, lifestyle preferences, and values. Here are some key takeaways from WSO threads on this topic:

1. Defining "Enough":

   • Many users emphasize that "enough" isn't just a number but a reflection of the lifestyle you want to sustain. For example, some aim for financial independence to cover mandatory expenses and enjoy a modest lifestyle, while others set higher targets to afford luxuries like first-class travel, private schools, or high-end living.
   • A common approach is to calculate your "number" by dividing your desired annual expenses by a safe withdrawal rate (e.g., 3-4%). For instance, if you need $20k/month to live comfortably, your "number" might be around $6-8 million.

2. Lifestyle and Family Considerations:

   • Many contributors highlight the importance of aligning financial goals with family aspirations. For example, providing children with opportunities (education, extracurriculars) or maintaining a certain standard of living often influences the "enough" threshold.
   • Some users note that their views on money evolve with age, family responsibilities, and changing priorities. What feels "enough" at 25 might not suffice at 40 with a family.

3. Avoiding the "Never Enough" Trap:

   • A recurring theme is the danger of constantly moving the goalposts. Some users caution against chasing arbitrary net worth targets (e.g., $30M, $50M) without a clear purpose, as it can lead to dissatisfaction and burnout.
   • Instead, they suggest focusing on what truly matters—time, freedom, and the ability to pursue meaningful activities.

4. Golden Handcuffs and Career Transitions:

   • The "golden handcuffs" dilemma is real for many in high-paying finance roles. While some plan to step back after hitting their "number," others find it hard to leave due to lifestyle inflation or the allure of continued earnings.
   • For those considering a transition, WSO threads often recommend identifying a "chill" job or passion project that aligns with your values and provides fulfillment beyond financial gain.

Your goal of a $25M net worth with a $5M home aligns with many WSO users' aspirations of balancing financial security, family priorities, and a comfortable lifestyle. However, as some users point out, the key is to remain flexible and reassess your goals as life circumstances evolve.

Sources: Money - What is your goal?, Money - What is your goal?, Financial freedom - what next?, $1,000,000,000 Before 40, Financial freedom - what next?