How Much Money Makes You Comfortable

[watsoninc]

I was curious on your thoughts on financial comfort? After one is free of at least consumer debt and aggressively building wealth, at what point is he or she financially comfortable? For example, is it at the point of financial solvency? Is at the point of financial independence? Is it based on your net worth/cash flow?

I am also interested in your thoughts on how much money, or what kind of lifestyle, makes one financially wealthy?

[happygirl]

Hmm, I'm not sure what amount of money would make me comfortable. Having been raised in a household where money was sometimes available and sometimes not, I've got huge issues with safety/security and money.

Certainly enough to pay your bills every month and have 6-12 months income saved back is a good start, but I would want additional money saved for kids' college, big item purchases etc, as well as being able to put money into a retirement account every month. Gosh, this is making me feel poor!

I don't see much of a connection between wealth and the quality of one's life beyond what I stated above. I think some of the most miserable people I hear about are celebrities who supposedly have tons of money. I'd rather live a simple modest life with wholesome values any day.

[gamecock43]

There is never a comfortable amount for me. I am only comfortable when I am continually adding to my wealth.

[disneysteve]

Having not yet reached that point, I'm not sure where it will be, or if, like gamecock43, that point will never come.

I'm hoping that the comfort point will be when I've got enough money to retire and live off of our savings. I'll let you know in about 20 years.

[m3racer]

My goal is 1 mill in liquid assets (cash, bonds, stocks, etc). Everything on top of it is just icing on the cake.

[maat55]

Originally Posted by m3racer

My goal is 1 mill in liquid assets (cash, bonds, stocks, etc). Everything on top of it is just icing on the cake.

I second. I'm planning that SS will be part of the icing, but not counting on it.

[watsoninc]

Originally Posted by gamecock43

There is never a comfortable amount for me. I am only comfortable when I am continually adding to my wealth.

I certainly hope there is a point where I would be financially comfortable. I definitely wouldn't stop building wealth at this point, but I hope that I would feel like I am in a position of financial strength.

Originally Posted by disneysteve

Having not yet reached that point, I'm not sure where it will be, or if, like gamecock43, that point will never come.

I'm hoping that the comfort point will be when I've got enough money to retire and live off of our savings. I'll let you know in about 20 years.

Being able to live off of passive income definitely is an appealing benchmark, but I can see where that would not provide sufficient comfort for some (i.e. some of the people who have recently been forced back into the job market were previously in retirement).

Originally Posted by m3racer

My goal is 1 mill in liquid assets (cash, bonds, stocks, etc). Everything on top of it is just icing on the cake.

Although having a 1 million in liquid assets is definitely an accomplishment, at first I was thinking that this isn't enough to be comfortable. However, upon reflection I think having a million in liquid assets would allow me to start feeling more financially comfort.

[disneysteve]

I think the value of $1 million totally depends on the individual. If you earn $50,000/year, it would mean a lot more than if you earn $150,000/year, for example. My goal for retirement is $3 million so while I'll celebrate that first million, I will not feel any particular financial comfort from reaching that milestone.

[Thriftina]

I don't think I will ever be financially comfortable.

[Radiance]

My personal take

I have experienced several situations from not being able to pay the electric bill, to taking 2-3 vacations a year. Aruba, Canada, Spain, ah, so nice.

Right now, I am comfortable as long as I can cover my son's needs. (He is a toddler, so he doesn't NEED school yet)
So, housing, milk, food, clothing and a few toys. Ah, and electricity for the A/C (I live in Florida) I can do cloth diapers if I need to. (I did it for him for three months, his skin was so delicate. )

Next degree, is to be able to pay all my bills without having to do any juggling, 6 months of income in the bank. I am all set! That will be wonderful.

Do I want more? Yes, and I am building abundance in my life, but I refuse to live in a constant state of lacking. I choose to be happy now. Be grateful now.

[reptile411]

Originally Posted by watsoninc

I was curious on your thoughts on financial comfort? After one is free of at least consumer debt and aggressively building wealth, at what point is he or she financially comfortable? For example, is it at the point of financial solvency? Is at the point of financial independence? Is it based on your net worth/cash flow?

I am also interested in your thoughts on how much money, or what kind of lifestyle, makes one financially wealthy?

I have yet to acquire an amount that would make me comfy lol. Actually I have had a dream my whole life of being wealthy, It was not until that long ago I started thinking "wait, what is wealth really?" That's when it hit me. I make way more than I spend and my net worth makes large jumps every month. I have a wonderful wife and 2 great kids, 2 businesses that are in the black, a nice home to call home. I already am wealthy.

[GREENBACK]

I feel somewhat comfortable at this point in life. I'm certainly not wealthy but I remember working 2 or 3 jobs at one point to make ends meet and still stressing over bills that were due. That was not comfortable. I now work 1 job and have no unsecured debt and when bills come due(even if higher than expected) I feel "comfortable" about the fact that they'll be paid in full and on time. I know there are other levels of comfort at different points in your life but for where I'm at in this stage of life I feel very comfortable.

[DebbieL]

As far as feeling "comfortable", as long as I have a good cushion of savings (emergency fund) I am comfortable enough. Right now I could probably survive about a year on my savings. This is by no means my whole financial goal in life, but just what is required to feel a bit comfortable, not waiting for the other shoe to drop, etc.

[zetta]

I have been fortunate that I've always felt comfortable financially. To me, that means the following:

* My fixed payments & needs fit easily within my paycheck.
* My wants spending is low enough that my savings tends to grow from month to month rather than shrinking.
* I'm always able to pay next month's bills from this month's income.
* I'm always able to set aside enough money that the semi-annual bills (car insurance and property taxes) are easily taken care of.
* I'm able to put at least 10% (preferrably 15%) of salary to 401k without feeling it.
* I have a sizeable emergency fund built up (3 months total spending, or 6 months needs only), so that if DH gets laid off we can survive until he finds a new job.
* My retirement accounts appear to be on-track for retiring in my 60's.
* I'm aware of my spending but not forced to squeeze every penny. I can afford little luxuries like craft beer, music classes, and highlights for my hair.
* I can afford to spring for large purchases every couple of years -- a great vacation, remodelling the kitchen, buying a more expensive car.

While it would be nice to be able to live off investments only and not have to work, I don't need to reach that level to feel comfortable. Granted, if DH and I were to have an extended period of unemployment, I'd feel distinctly uncomfortable until we found work again.

I would like to be doing more non-retirement investing, and possibly to retire early, but so far haven't chosen to pinch our lifestyle to make that happen.

[money blogger]

I think it is important to first figure out how much you want. My goal is a minimum of $10k a month net PASSIVE income. I am not so much worried about net worth and savings. I know with passive income the two will take care of themselves.

[watsoninc]

I guess it is fair to say and unsurprising that everyone's financial comfort level is different. However, it does sound as if there is consensus that financial solvency is a must for comfort. It also appears that there are plenty of people who probably won't be comfortable financially until they are financially independent and ready to retire or at least getting there (i.e. liquid net worth of $1 million). Lastly, I guess there is a minority who will never be financially comfortable.

[disneysteve]

Having read other responses and thinking more about this, I think from a different perspective, I'm already financially comfortable. I have a good job and a good income. We are able to pay all of our bills, take nice vacations, go out to eat, generally enjoy ourselves and still save well over 20% of our gross income for future needs. I realize that when looked at in that way, we are very lucky to be where we are financially and are certainly comfortable with what we have.

[Runaway Finances]

When a reporter asked Howard Hughes how much is enough money, he answered "One dollar more!" You are financially comfortable when you have enough money to pay your bills and reasonably do the things you want. In other words, you are satisfied with where you are. That doesn't mean you can't strive for more, but you are fine if you don't achieve more. You are content with where you are. Hopefully, we are doing things to help others when we are financially comfortable AND all along the way while we try to get there!

[Goldy1]

If I had a paid off mortgage and a defined pension and health plan, you could consider me a happy cookie. I have none of these things yet. Paid off mortgage is soon, but I face an uncertain financial future due to the lack of jobs out there having worked outside my field for lower pay.

Enough to not have to worry about taking my kid out for icecream or a yearly family trip. Having health insurance, and enough to pay bills and some for the future. I am a simple person. I like money, but I am not in love or obsessed with it. I know people like that. No thank you. I do not want to live like that. Bless them. I know people who seem to live for money. They have more than enough if they had half of what they had and each day is a drawn out pursuit for more. Life is too short.

[Goldy1]

Retirement(which could mean p/t job for me and dh during it for money and sense of worth) at age 50 ish is my goal.

I just had a child, and money is ironically more and less important to me. I need more, but having more free time to be with him rules. I care less about "things" but I never cared a lot anyway.