World 12 · Philosophy of money · Lesson 3 of 13

How much money is enough?

Keynes expected people to stop working so hard once they were rich enough. Why didn’t they?

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The idea

In a 1930 essay, Economic Possibilities for our Grandchildren, the economist John Maynard Keynes predicted that within a century, economic growth would make people in rich countries several times better off, and that they might then work perhaps fifteen hours a week, turning their attention from earning to living well. The first part of his prediction broadly came true; the second did not. Many people in rich countries are far wealthier than their grandparents and still work long hours.

Why? Some explanations: people compare themselves with others, so relative position matters as much as absolute wealth; new wants appear as old ones are met; some people genuinely enjoy their work; and much of the extra income went to the already wealthy. Later writers, including Robert and Edward Skidelsky in How Much Is Enough?, argued that without a shared idea of the good life, there is no natural stopping point.

The writer Morgan Housel, in The Psychology of Money, makes a related, more personal point: one of the most dangerous money habits is never defining enough, because the goalpost moves with every gain, tempting people to risk what they have and need for what they merely want.

Why it matters

Without a sense of enough, more money can never feel like enough. With one, extra money becomes a choice about how to live rather than a race.

A real example

The situation

Tomasz reaches every income target he set in his twenties, yet feels no more secure at forty than he did at twenty-five.

What happened

He notices that each target was replaced by a bigger one the moment it was reached. He writes down what a secure, comfortable life would actually require, finds he is past it, and starts shifting some of his time to things he had postponed.

The takeaway

The feeling of never enough came from a target that kept moving, not from his situation.

How people actually behave

People measure enough relative to those around them and to their own past, so rising incomes raise the bar rather than meeting it.

Common mistakes

• Never asking how much is enough.
• Letting others’ wealth set your target.
• Assuming that defining enough means giving up ambition.

Different perspectives

Reasonable people disagree here. None of these is presented as the answer.

Enough should be defined deliberately

Keynes, the Skidelskys and Housel, in different ways, suggest that without a chosen idea of enough, people keep striving past the point where more money improves their lives.

More can still serve good ends

Others argue that ambition beyond personal sufficiency can fund innovation, employ people, support causes and protect against an uncertain future, so “enough” should not be a ceiling.

Questions to think about

• Did any of your past money targets feel like enough once you reached them?
• What would have to be true for you to feel you have enough?

Try it: Keynes’s question for you

1. Imagine you had enough money for a secure, comfortable life.
2. Write how you would spend your weekly hours.
3. Note one small step toward that week you could take now.