How much money would it take to change your life?
Posted
Jun 27 2008, 11:48 PM
by
Karen Datko
Rating:
Most of us have lottery dreams. If we won the big one, we'd quit our job(s), pay off the house, live abroad. But consider this: The amount of money it would take to change your life might actually be much more modest -- and a lot more attainable.
"Paidtwice" at I've Paid For This Twice Already calls that amount your "life-changing money." She used to think it was hundreds of thousands of dollars. "But then I realized -- at this point, life-changing money for me really means simply getting out of debt and establishing an adequate emergency fund," she wrote. With $40,000, she wouldn't have to think so much about money with every decision she makes. Many of her readers said they feel the same way.
Some said it would be enough money to pay off student loans or mortgages. Reader Shevy said it's $175,000 to put a large down payment on retirement property, and agreed that the number is "a lot less than the $600,000 to $700,000 figure that I carry around in my head."
Marci, 54, said paid health insurance would allow her to retire early. "Vh" at Funny about Money wrote that her life-changing money came from a job switch that now results in an extra $20,000 a year. "Just having enough to make ends meet reliably -- even when the plumbing breaks or the car has to be repaired -- makes a huge difference in my peace of mind," she said.
But, wait a second. Are these people fooling themselves? Would the life-changing effects linger? That seems to be the $20,000 or $175,000 question.
In fact, reader "J" wrote: "Wow. Very modest amounts. For me, 'life-changing' would be enough money to allow me to replace my current and future income. In other words, retire right now." His magic number, including money to put three children through college, is no less than $5 million.
It need not be a one-time event, paidtwice replied. Once she hits her goal, "the ante goes up as to what might be life-changing again."
(It appears that paidtwice's debt-payment progress has already given her some peace of mind. In a separate post, she described the desperation she used to feel, and said, "I live now in a place of, in a word, choice.")
