How Much Is ‘Enough’? How This New Personal Finance Mindset Can Reduce Stress
Chasing more money for the sake of more money is a trap. It leads to stress, lifestyle creep, and constantly moving goalposts. At some point ask yourself, how much is enough?
“How much do you need to have a life that feels full, not just financially, but in time, purpose and freedom? That’s why I’m a big believer in defining a personal sufficiency number, (PSN). What does enough look like for you?” asks Andrew Latham, a certified financial planner and content director at SuperMoney.com.
Knowing the answer to how much is enough can mean the difference between turmoil and peace. The experts weighed in on what a personal sufficiency number is and how it can change your finances and your life.
What is a personal sufficiency number?
“In reality, most people never stop to ask what “enough” looks like. They chase growth, upgrade every five years and treat their bank balance like a scoreboard,” says Eric Croak, a certified financial planner and president of Croak Capital.
He says a sufficiency number flips that script. It says: “This is how much I need each month to live comfortably, sleep well, and do what matters.”
For some, it is $7,000 a month post-tax income. For others, it is $2.5 million invested across assets that produce $120,000 per year. "Either way, the math only matters if it’s tied to what you care about,” says Croak.
How do you calculate your number?
Calculating your sufficiency number is a reflective exercise in clarity and intention. Before doing this exercise, Eleanor Victorioso, a CPA and money coach at Rhythm of Money, offers a step-by-step strategy:
- Identify your core needs: Start by listing your fixed expenses: mortgage or rent payments, utilities, groceries, insurance, car payment, childcare, pet care, etc.
- Factor in values-based spending: Next, add expenses that align with your values that aren’t necessarily basic needs—this might include donations or savings for education, for example.
- Allow for flexibility: Add some breathing room for unexpected expenses or any desires. You want to create a number that feels abundant and sustainable, not restrictive.
- Reflect on your goals: Think about your long-term goals, like retirement, a sabbatical, having kids, travel, or starting a business. How do these goals factor into your personal sufficiency number?
- Regularly reassess: Your sufficiency number is fluid. It will evolve as your life and goals change. Reassess it annually or when big life changes happen.
Here’s why this is worth doing
As a therapist who's worked with countless clients struggling with money anxiety and values alignment, Brooke Brandeberry, a licensed counselor with Ebb & Flow Counseling has seen how powerful having a personal sufficiency number can be for mental health.
“The clients who define their ‘enough’ experience 40-50% less financial anxiety because they're no longer chasing an endless moving target. The psychological benefit is profound. You're operating from sufficiency rather than scarcity,” she says.
Erinn Everhart, a licensed marriage family therapist with Every Heart Dreams Counseling, further explains that the psychological benefit comes from moving from external validation to internal purpose.
“When you have a clear number based on your authentic values, spending decisions become easier because they're filtered through ‘Does this align with who I truly am?’ rather than ‘What will others think?’”
How do you keep your spending/desires in check with the PSN concept?
“A personal sufficiency number works best when supported by a clear structure for spending,” says Chris Powell, head of Deposits and Customer Engagement at Citizens Bank. He believes one of the most effective methods is the 50/30/20 rule, which helps you stay aligned with your values and goals while still enjoying life.
He explains that this approach divides your after-tax income into three simple categories: 50% for needs like housing, groceries, and transportation; 30% for wants such as dining out, entertainment, or hobbies and 20% for savings, whether that is for an emergency fund, a big goal, or retirement.
“This method helps you balance responsibility with enjoyment. By giving yourself dedicated space for non-essential spending, you avoid guilt and reduce the risk of impulse purchases,” says Powell.
Stephanie Crouch, a licensed clinic social worker with Bay Area Therapy for Wellness, adds, “You can say ‘no’ to spending without guilt because you’re protecting something bigger than the moment.”
The takeaway
Victorioso, sums it up, “Incorporating a personal sufficiency number into your life can help create a healthy relationship with money—one that’s not about scarcity or abundance, but about balance. It allows you to live in alignment with your financial reality, giving you the freedom to enjoy life without being driven by external pressures or unattainable goals. It’s a tool that can bring peace to your financial life and increase your overall life satisfaction and enjoyment.”