Getting your Trinity Audio player ready... |
I recently met with a business owner who is ready to retire – and I always enjoy the first meeting with folks. He let me know that he was proud of what he and his wife built – it’s a nest egg that is super impressive.
But what stuck with me is this represents a life of earning, saving, risking, and sacrificing. He was proud of his balance, but even more proud of the two daughters (and their newest grandchild), who he couldn’t help but get choked up talking about.
But the question that he was more centered on than anything was one that I think is on the mind of many pre-retirees and retirees. And it’s one that may keep you awake at night: How much is enough – and how will I know when I’ve achieved it?
The Problem We Seem to Face
Our entire economy is built around convincing you that you never have enough. Social media amplifies this problem exponentially, flooding our feeds with glamorous displays of wealth that make our own financial situations feel inadequate. We’re constantly comparing ourselves to others, running a race that has no finish line.
But I’d argue the following: if your expectations grow faster than your income, you’ll never be satisfied, no matter how much you accumulate.
The relentless pursuit of wealth often comes at the expense of what really matters—and it reminds me of the old quote: “A rich man is not one who has the most, but one who needs the least.” So it’s worth asking (and I find myself as guilty as anyone here), but do we have way more than necessary? And is it really making us more fulfilled?
The Two Pillars of “Enough”
1. Values: Know What Matters
Determining “enough” starts with honest self-reflection. What do you truly value? What kind of life do you want to live in retirement?
Your financial decisions should align with your core values—whether that’s family, freedom, security, travel, legacy, or charitable giving. A healthy relationship with money involves balancing the pursuit of wealth with the pursuit of inner growth and purpose.
Warren Buffett captured this perfectly: “Don’t risk what you have to get something you don’t need.”
2. Mindset: Flow vs. Stock
Most people view money as a stock—a static pile that they’re desperately trying to make bigger. But what if you shifted to viewing money as a flow—something that moves to and through you?
This mindset builds inner confidence that the flow of money will always be sufficient for your needs. It reduces anxiety about the overall level of accumulation and frees up mental energy to focus on what you can do with what you already have.
Paradoxically, when you stop obsessing over getting more of what you don’t truly need, you often end up with a greater sense of abundance.
What Money Can (and Can’t) Buy
Money can buy one truly invaluable thing: freedom—the ability to control your own life and have autonomy over how you spend your time.
But the most priceless aspects of life cannot be purchased:
- Time – your most finite resource
- Autonomy – the ability to live life on your own terms
- Relationships – family and friends who provide connection and support
- Reputation – built over a lifetime, easily lost in pursuit of more
- Happiness – derived from experiences, relationships, and fulfillment, not material goods
The concept of “enough” helps you protect these invaluable assets while still maintaining financial security.
Applying “Enough” to Your Retirement
Now, let’s get practical. While “enough” is a psychological measure, retirees still need concrete calculations.
Calculate Your Actual Needs
Forecast your future budget. What will you actually spend in retirement? Consider both necessary expenses and discretionary spending. Many retirees live comfortably on less than 80% of their pre-retirement income – but it doesn’t mean you need to.
Shift your focus from savings to income. The real challenge isn’t “Do I have enough saved?” but rather “Can I generate the reliable income I need for as long as I live?”
A common guideline suggests saving 25 times your desired annual expenses for financial independence. But remember—this is a starting point, not a finish line.
Plan for the Unknowns
Knowing your baseline budget is a start, but you also need to plan for worst-case scenarios:
- Inflation eroding purchasing power
- Stock market corrections
- Major health crises
- Living longer than expected
The goal should be to create a resilient plan that provides genuine security.
Finding Your “Enough”
The individual I met with did tell me he wants to take his wife to Italy. He also wants to help his daughter who is struggling to find a home in this crazy market. And he wants to make sure he and his wife spend some time building memories by traveling – after years and years of delaying the joy they could share together.
This takes planning, funding, and a strategy to make sure they can do this efficiently and safely. But after that’s accounted for and taken care of – then what?
It’s important to shift the mindset from saver to enjoyer – but it’s by no means easy.
For retirees, “enough” serves as a framework to secure a comfortable life without jeopardizing what truly brings fulfillment.
It means having the resources to cover your needs and reasonable wants, plus a cushion for uncertainties—while maintaining the freedom to spend your time aligned with your values.
It means retiring on your own terms, rather than out of necessity.
Most importantly, it means recognizing that the years you’ve gained in retirement are meant to be lived, not spent in constant anxiety about whether you have “enough.”