Hello everyone, i believe we've been having great time as the week gradually come to an end.
I'm delighted to be here again after my device broke down for some weeks now.
I'm privilege to participate in this week Hive-Reachout Weekly Prompt 38>>"How Much Do You Need?" I want to thank the community for this week prompt and i hope my entry is worth reading to you all. Thank you.
Here is my response to the weekly prompt.
How Much Do You Need: Rethinking Our Relationship with Money
In a world where financial stability is often tied to happiness and security, it's easy to get caught up in the idea that more money equals more happiness. But is this really the case?
As i came across this theme "How Much Do You Need?", i started examining my relationship with money and consider whether my pursuit of financial wealth is truly fulfilling.
The Money Trap
We've all been there - stuck in the cycle of earning, spending, and earning some more. We convince ourselves that just a little more money will bring us the freedom, security, and happiness we desire.
However, research has shown that once our basic needs are met, additional wealth does not necessarily lead to greater happiness. This is known as the "Easterlin paradox."
In fact, studies have shown that: 80% of Americans believe that money can buy happiness, but only 10% report being happy. The wealthiest 1% of Americans report being no happier than the average American. People who prioritize material wealth over relationships and personal growth tend to be less happy.
So, how much money do we really need?
The Enough Point
The concept of "enough" is subjective and varies greatly from person to person. It's the point at which we feel financially secure and able to meet our needs.
Calculating our enough point requires us to reassess our priorities, values, and relationship with money. It involves asking ourselves:
What are my non-negotiables?
What brings me joy and fulfillment?
How much money do I need to live a comfortable, yet simple life?
To calculate your enough point, consider the following steps: Track your expenses: For one month, write down every single transaction you make. Categorize your expenses: Divide your expenses into needs (housing, food, utilities) and wants (entertainment, hobbies).
Set financial goals: Determine what you want to achieve with your money (saving for a down payment, paying off debt). Calculate your enough point Based on your expenses, goals, and values, determine how much money you need to feel financially secure.
The Benefits of Knowing Your Enough Point
Understanding our enough point can have a profound impact on our financial and emotional well-being:
Reduced financial stress: Knowing how much we need can help us avoid overspending and reduce debt.
Increased savings: By understanding our enough point, we can save more effectively and make progress towards our long-term goals.
Greater fulfillment: Pursuing our passions and values, rather than just accumulating wealth, can lead to a more meaningful and fulfilling life.
As i reflect on the theme "How Much Do You Need?", i remember and reminded myself that true wealth goes beyond financial riches. It's time to redefine our relationship with money and focus on what truly adds value to our lives. I believe this help someone out there.
Thank you for reading through.
Regards.
Liman Ayaka Agbu.