We all know that the answer for this question depends on many factors and everybody have a different answer for this. Some of the people think that there is no limit for money. Of course there isn’t. However, it’s all about risks. If you want so much money, you have to take more risk and if you want less money, then you will have less risk. So it’s very important to understand how much you really need and want and not be greedy.
Some of us want to travel the world in a private jet, some of us want to live debt-free. It all will be depending on determining your approach to investments.
According to a study made in the Center for Health and Well-Being at Princeton University, after earning $75,000 a year, your day-to-day life experience doesn’t really change much. What changes is life satisfaction. This is when you feel that you have accomplished.
What you really need to do if you want to happy financially is below:
Eliminate your debts
Debt is the biggest weight on the shoulders. If you eliminate them, you won’t go bankrupt.
Have diversified investments
You need to build a portfolio with high quality investments which will provide you the life you want in the long run.
Have an insurance coverage
This is very important if you don’t want to lose everything if something goes wrong.
Have multiple income sources
Relying on one income source will put you at risk if you lose it. You need to have diversified income sources and your multiple sources will cover the others in case of emergency.