How You'll Know When You Finally Have Enough Money

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Jul 10, 2025

Discover the intriguing blend of math and emotion in determining if you've truly achieved financial sufficiency. Explore how strategic investments play a vital role while balancing risk and seeking life satisfaction beyond mere numbers. Delve into common psychological barriers that prevent low-risk investing, fueled by greed and insecurity. The discussion also touches on the paradox of chasing challenges even after reaching financial stability, urging a thoughtful reconsideration of your asset allocation for a more fulfilling life.

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ADVICE

Calculate Enough Money

To determine if you have enough money, multiply your desired annual expenses by 25 to 50.
This should equal your investable assets outside your primary residence to consider yourself financially sufficient.

INSIGHT

Feeling Enough Is Emotional

Having 25 times your expenses doesn't always feel like enough to many people.
Often, 50 times expenses is when they start feeling truly financially independent.

ADVICE

Enough Means Leaving Draining Jobs

You truly have enough money when you refuse to do work you dislike for money.
Leaving a draining job is the clearest sign of financial independence beyond paper calculations.

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Figuring out when you have enough money is a mix of math and emotion. You might have enough on paper, but if you’re not emotionally ready to live life entirely on your terms, then you probably don’t have enough yet.

As one of the pioneers of the modern-day FIRE movement in 2009, I’ve developed a new framework with clear action steps to help determine if you’ve truly reached “enough.” It goes beyond the typical 4% rule or simply having 25 times your annual expenses in investable assets.

A Net Worth Equal To 25X Annual Expenses Is Not Enough To Retire Early

The Best Way To Determine If You Have Enough Money

The Minimum Investment Amount Where Work Becomes Optional

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