One of the fascinating things I learned from my Rich Habits research is that there is an optimal amount of money/wealth.
If you have too little money or too much money, your life will be filled with constant stress and worry. Which leads to an unhappy existence.
When you’re poor, you struggle with financial insecurity. You’re main financial worry is paying your mortgage or rent.
When you’re poor, if your car breaks down, you stress and worry about finding the money to fix what is broke.
When you’re poor, if you kids struggle in school, you stress and worry because you lack the financial resources to pay for a tutor to help your kids learn.
When you’re poor, medical issues create stress and worry because you cannot afford the medical treatment or the medications you require.
In short, when you’re poor, you constantly worry about money.
When you’re very wealthy, you stress and worry about minimizing how much of your wealth goes to the government in the form of taxation.
When you’re very wealthy, you constantly stress and worry over preserving and protecting the wealth you created.
When you’re very wealthy, you stress and worry over managing all of the responsibilities that almost always accompany excess wealth. Think company issues, employee issues, constant financial demands in running your businesses, etc.
When you’re wealthy, you stress and worry every time something bad, like a flood or hurricane, damages one your vacation homes, requiring your immediate attention.
When you’re very wealthy you stress and worry about maintaining or fixing all of the toys you own – cars, boats, etc.
When you’re very wealthy, you stress and worry over the family issues that almost always accompany excess wealth – addiction problems, safety issues, legal problems only your wealth can solve, etc.
When you’re wealthy you constantly stress and worry over maintaining relationships with the Influencers who helped you become wealthy and who place constant demands on your time and your money.
In my Rich Habits research, I determined that the optimal amount of wealth that eliminates all financial worry and that does not come with burdensome baggage, stress and worry is between $3 million – $15 million, with about $6 million being the optimal amount of wealth.
That is the sweet spot range
Anything below $3 million means you have to be careful how you spend your wealth. Spend too much and your wealth will eventually become depleted.
Anything above $15 million and life gets significantly more complicated.