More Money Won’t Make You Happy - Part Two

"How much money do I need to have enough?" I hear this question at least one time a month. Many years ago, a prospective client told me, "You know, Kendall, you need $8 million to have enough to retire comfortably." I asked for the math behind this number and was told that a "smart and successful" mentor had told him about the number, although there was no further explanation of why it was $8 million.??

I love math and talking numbers as much as anyone - which is part of the reason I chose my profession. I have learned though that the secret to finding enough isn't just a number but includes non-measurable factors.

In Part 1 of this topic, we learned that accumulating more money cannot make us happier. In Part 2, my goal is to help you come up with your definition of "enough."??

I have found there to be three keys to unlocking enough:

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1. Create a financial finish line and commit to it

2. Learn how to be more content right now

3. Leverage the Bible as a resource, as it is a wealth of wisdom

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Start with creating a financial finish line

The biggest barrier to financial freedom is determining how much is enough. A friend told me that his sales leader demoralized the team when this leader would constantly increase the goal during the year if they were on track to meet the prior set goal. The beautiful thing for you in this process is that you get to determine the enough number.?

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Carl Richards, a great thinker and coach of financial advisors, said, "Enough is not a number. It's not a place where you arrive. It's something you have to be. It requires a different work. It's a job money can't do. We give jobs money can't do. Happiness, security, and enoughness are not jobs that can be done."

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I think he is spot on. There is also no one correct answer for how much is enough. I also believe it is impossible to accumulate enough to feel 100% secure since you can't protect against all possible contingencies. But if you can answer the question of "how much is enough," you will free up space to enjoy life and relationships, which matter in the end.

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Here's an exercise you can do to find a enough number. Over the next week, take some time to figure out your burn rate, meaning how much money you need to pay your bills. This includes necessities like housing costs, auto costs, insurance, food, and so on. Don't overthink it – include everything that you find to be essential. For many, gym fees, internet costs, and haircuts, among other things, are essential.?

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Next, review all non-essential expenses and determine which ones bring you joy or make you feel good. This is not an exercise to try to cut down your lifestyle. I encourage you to keep spending on these if they make you happy. This is to help you be intentional about how much is truly enough for you and to be specific about what matters to you. For instance, I pay for a monthly car detail service. That's not essential, but it creates a lot of joy for me to drive around in a clean car.?

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During this exercise, you may also find that some of your spending brings more stress than happiness. Make a note of this and then determine what the next step is to cut this expense out. I have a friend who owned a lake house that his family uses no more than six weekends a year. He told me he would go even less if he didn't feel he needed to rationalize his purchase. This is an example of something that brought him more worry than joy, and he discovered that selling the lake house and putting in a pool created more joy for his family. (although he may find that pool maintenance becomes a pain in the butt, but I digress).

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Your perspective leads to contentment

The second key to finding enough is to realize your perspective matters as much as your enough number. True contentment comes from internal satisfaction, not external validation. Here are some principles that will help you be more content right now:

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• Practice being more content. In Philippians 4:11, it reads, "I have learned to be content in whatever circumstances I have.” It is possible to be more content regardless of your current financial standing, but you have to be intentional with it.
• Learn to avoid comparison and be careful about allowing others to determine your lifestyle. I wrote about this previously: The Comparison Trap. I can't tell you how many things I have bought that I didn't know I "needed" until I saw someone else with them.?
• The only goal that matters is your goal. Here's a famous quote, "We spend money we don't have to buy things we don't want to impress people we don't like." Here's the thing - what other people buy should have nothing to do with you, and what's yours is enough. You get to decide what you want.
• Freely enjoy whatever you spend as long as it's included in your budget. Whatever you do, refuse to feel shame when you splurge on items that are important to you and can afford. I have several successful clients who struggle with money shame, likely due to their childhood memories of money. One of my favorite things I get to do as a financial advisor is to give clients permission to enjoy their money and feel zero shame.?
• Try to live more simply and be content with what you have. Philippians 4:12 tells us - "I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or want." We can all learn to be content with what we have. Our culture makes it difficult to live a simple lifestyle, but evidence suggests the more things we have, the more stress we create. Think about it - if you buy a new sports car, you must worry about insurance and how to keep it from being scratched. Does this provide more contentment or less?
• There is always an opportunity cost with consumption - financial, emotional, and spiritual-wise. So, consider all aspects before purchasing to appreciate all opportunity costs fully.
• Financial contentment tends to flow from spending less than we make, not from how much we make. Whether you make $40,000 or $4 million, you have complete control of whether you spend less than you make. By spending less than you make, you are proving to yourself that you are disciplined, which will help you become more content.

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The Bible provides timeless wisdom

I am a follower of Jesus, impacting how I see the world and choose to live my life. Therefore, I have formed a few key beliefs that affect all my financial decisions:

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1. Eternal perspective helps me be content with all that I have.

2. God owns it all; therefore, I am only a steward of the resources he provides to me.

3. No amount of money can provide ultimate security - that can only come from my relationship with the Lord.

4. The Bible has over 2300 verses concerning money, which offers wisdom and insight into my decision-making. Here are a couple of my favorites:

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Ecclesiastes 5:19 – Moreover, when God gives someone wealth and possessions, and the ability to enjoy them, to accept their lot and be happy in their toil – this is a gift of God.

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Luke 16:11-13 – So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else's property, who will give you your property? No one can serve two masters. Either you will hate and love the other, or you will be devoted to and despise the other. You cannot serve both God and money.

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I believe my financial decisions will impact both on Earth and life after death. Here are three questions I ask myself because of my faith:

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• How do my spiritual views impact my money decisions, and, in particular, how do I determine how much is enough for me?
• Have I prayerfully sought God's direction regarding my lifestyle? Proverbs 3:5- 6 says, “Trust in the Lord with all your heart and lean not on your understanding. In all your ways, submit to Him, and He will make your path straight.”
• Ask God, "How much is enough for me to be content?"

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So how much is enough for you? There is no one correct answer. You are unique and get to decide what that number is for you. Just make sure that on your path to finding enough, you don’t forget to enjoy opportunities with your money now.

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Next month, I’ll wrap this series up in Part 3 by writing about the final key to finding more happiness with your money.

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