How much money do you need to be truly happy? Some people may give you a number, but most people will all tell you the same thing – a little more. When they get there, the goalpost moves and the amount is greater, yet surprisingly still the same – a little more.

And it’s always going to be a little more if you don’t understand what it means to be truly wealthy, and if you’re never happy with what you already have. There are millionaires and billionaires, people who couldn’t spend their wealth in many lifetimes, people who have every physical need taken care of, people that live lifestyles most people couldn’t fathom, that aren’t satisfied with the number of dollars in their accounts. They too want a little more.

It’s understandable; it’s human nature to strive for more and to improve your life. But to be happy and truly wealthy, it’s important to be grateful for what you do have and to understand what ‘enough’ is.

True wealth isn’t about having a lot of stuff or a lot of money. It’s about having freedom. Many people aspire to a lifestyle they think the rich live – fancy cars, jewelry, and designer clothes. What they don’t realize is that those things are precisely what are keeping them from attaining true wealth, because the money spent on the displays of wealth could be put to work creating that wealth they so desire to emulate.

True wealth doesn’t mean having expensive things, but rather having few wants.  It means being free from envy about other people’s stuff.  It means being free from debt and not stressing over missing a payment on something. It means not being a slave to a bank or a boss and being able to spend time how you see fit.

If you’re always chasing that next high, no amount of money will ever be enough. There’s always something bigger and better.

True wealth is living a life free from comparison.  There will always be someone with more money or more stuff than you.  But if you are happy with a modest life, true wealth is attainable.

Let’s say you get a brand new car, like a fancy one. A luxury sedan, I think the car ads call them. It’s amazing, It’s fast, it’s sexy, it’s shiny. Everybody either wants to be you or be with you, and people would give an arm and a leg to just sit in the passenger seat…

…except they don’t.

When was the last time you stared enviously at a mid-level BMW? One just like (*gestures expansively*) aaaaalll the other ones on the road, 60% of which were likely purchased in a fit of middle age crisis? Anyway, the thrill of new shiny fades, the car loses value, and you crave the next shiny high. You get envious of your neighbor who just got an even luxurier sedan, so you decide to trade it in and get a fancier one to one-up your neighbor.

This is called ‘Keeping up with the Joneses’ and it is a surefire way to keep you broke.

Look at rappers who wear half their net worth in gold around their necks, and the other half in that Lamborghini they will be unpleasantly surprised to find out costs more than they can afford to have the oil changed.  Are they wealthy?  No, they’re insecure and have a strong need to show how rich they are.  Look at billionaires like Warren Buffett, Bill Gates, and the current richest man in the world, Elon Musk.  They look like they shop at Goodwill, and that’s because they have no need to prove how wealthy they are.  They know the money others use to show how much money they have is better spent in making them more money. 

Many of the aforementioned rappers have discovered this principle as well.  Jay-Z and Dr Dre used to deck themselves out in expensive finery early in their careers, but you’ll rarely see more than one modest chain around their necks now that they are billionaires

Just to be clear, I don’t begrudge people buying good quality things, or even fancy or expensive things if they like them and can afford them. What I am trying to do is discourage conspicuous consumption by people that aren’t at a point in life that they can truly afford it.

True wealth is quiet, not flashy, and works in silence until the results speak for themselves. Having time to do things we enjoy is more valuable than stuff, and the benefits last longer. Being able to do what you want tends to be more worthwhile than living in a big house or driving a fancy car while you’re drowning in debt.

Plus, you can calculate how much money you need to be able to live off passive income forever without having to worry about working for a living.  It’s 25-30 times your annual expenses, by the way.  That should give you an actual number to shoot for.