Have you ever asked yourself how much money do you need? Everyday we are working for money, constantly worrying about it and always hoping we can have more. Most of us will think that we will be happy by having more money. Is that so? How much do you need?
If you say we need money to survive, then you would not need that much. Maslow’s hierachy of needs (see figure below) specified that humans need to fulfil the basic physiological needs like food, water, clothing and shelter in order to think about something else. I would say most Singaporeans would be able to afford these basic necessities. The question is how expensive you want to eat, wear and stay. Hawker or restaurant? Functional clothes or branded? 3 room HDB flat or Condominium? If you already have the latter for most of the questions, you have more than fulfilled your physiological needs. In fact, you are choosing a particular lifestyle.
What if you have achieved your desired lifestyle? Do you forsee yourself being fulfilled and happy? Or when you have a condominium, you would want a landed property? If the attention is on upgrading your lifestyle, you will never be able to achieve fulfillment in life. I find this common to many people around me, including myself, which my perspective has begun to change. Life is much more than what money can bring. If we keep thinking that money can make us happy, we will be chasing shadows and be disappointed at the end of the day. You should chase money only when your basic needs cannot be fulfilled. Because you need money to exchange for food, water, clothes and shelter. I would assume you have fulfilled level 1 since you are still alive and reading this post online. In this case, if you are chasing money, you are not talking about needs, but wants. You want a desired lifestyle.
Let us revisit the Maslow’s hierachy again. If you asked me, only the first two levels (physiological and safety) require money. Humans seek certainty and want things to be under control. Once our basic needs are fulfilled, we look at protecting what we have. We do indeed need more money to be safe and secure. But how many of us do proper financial planning, such that we get free from the money trap? The more you earn, the more money you need to protect your lifestyle. Most of us always complain Singapore is so competitive and life is getting harder. This is because our security (or current lifestyle) is threatened. Without a sound mindset and proper financial planning, we will never be able to escape from this level.
To fulfil the level of love/belonging, most of us believe that improving our lifestyle will improve the relationship with our partners and family. The same thinking applies to the levels of esteem and self-actualization. By having a better lifestyle, we assume we will be well respected and successful. Instead of protecting our current lifestyle with proper financial planning, we keep spending to improve our lifestyle. With a better lifestyle, we now have to protect it by having more money. We get trapped in the second level (safety). We find that we can never be satisfied. We always feel we do not have enough money.
Money is not the problem. Mindset is the problem. We need to understand and accept that having a better lifestyle does not equate to having a better life. If we seek a better lifestyle, when will it end? There will always be a better lifestyle to chase after. I am not suggesting you should not have a dream lifestyle. In fact you should. But know when to stop. Work on your relationships. Work on your passion in life. Warren Buffett is always a good example. Despite his wealth, he still stays in the same house that he first bought. Drinks coke and eat McDonalds’. But he has reached the level of self-actualization. Recently, 40 US billionaires pledged half their wealth to charity. Have you ever wondered why the rich earn more money only to give them away? Because they have long detached themselves from money. They no longer chase money. They no longer desire a certain lifestyle. They want to achieve other things in life that cannot be achieved by money.
My point is, fulfillment in life is not about lifestyle or things that money can buy. We have given too much credit to it.
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{ 28 comments… read them below or add one }
asking how much you need is like asking how long you want to live. ofcos the longer and the more is better for both.
growing up to matuerity til death is a natural cause, it should be the same case as money growth.
most people (adults) are still in childhood stage in terms of money management, just like a child whos everyday dream is to becomes an adult.
asking how much you need is like asking how long you want to live. ofcos the longer and the more is better for both.
growing up to matuerity til death is a natural cause, it should be the same case as money growth.
most people (adults) are still in childhood stage in terms of money management, just like a child whos everyday dream is to becomes an adult.
Hi Alvin
Most of us are trapped chasing after money till our last breadth including me
Sharing with you George Kinder’s LIFE PLANNING (not only Financial Planning) & his 3 questions (not sure if you have come across) on on what we really need…
Question 1: Imagine that you have enough money to take care of all your needs, now and in the future. How would you live your life? Would you change anything?
We’ve probably all heard some variation of this question. If you won the lottery, what changes would you make in your life? Many of us would quit our jobs, but then what? How would you fill your days if money was not an issue? The point to this question is to unearth what is most important to you. Perhaps you would keep your job, if not scale back some. Maybe you’ve wanted to start your own business, or get deeply involved in a charitable organization. The key to making this question work, however, is to unleash your dreams and imagination. Don’t hold back because you think your dreams our unrealistic. I hope they are unrealistic, they are dreams after all.
Question 2: Imagine that your doctor says you have only five to 10 years to live. You won’t feel sick, but you’ll never know when death will come. What will you do? Will you change your life? How?
This question takes the first one a step further, and ads a touch of reality. In question 2, you’re not financially free to do whatever you want. Instead, it causes you to think more deliberately about your life and your future. It makes you see time as the scarce resource that it truly is. It forces you not to take your time on this earth for granted. So what would you do? Would you work more and spend more time at the office? Probably not. You’d probably hug your children and tell them how much you love them every day. You might write that book you’ve always wanted to write, or learn to dance or speak a foreign language. Who won American Idol would probably seem a tad less important.
Question 3: Now imagine that your doctor says you have only one day left to live. Ask yourself: What did I miss? What did I not get to be or do?
Question 3 to me is the most important. It’s about regrets, and most of us have some. What would you regret not doing, or not seeing, or not being? If you spend some time really thinking about this question, you’ll identify what is most important to who you are and who you want to be. For me, it’s writing a novel. That has always been one of my dreams, and the one thing I’d regret not doing if tomorrow were my last day.
Regards
Lost Soul
Hi Alvin
Most of us are trapped chasing after money till our last breadth including me
Sharing with you George Kinder’s LIFE PLANNING (not only Financial Planning) & his 3 questions (not sure if you have come across) on on what we really need…
Question 1: Imagine that you have enough money to take care of all your needs, now and in the future. How would you live your life? Would you change anything?
We’ve probably all heard some variation of this question. If you won the lottery, what changes would you make in your life? Many of us would quit our jobs, but then what? How would you fill your days if money was not an issue? The point to this question is to unearth what is most important to you. Perhaps you would keep your job, if not scale back some. Maybe you’ve wanted to start your own business, or get deeply involved in a charitable organization. The key to making this question work, however, is to unleash your dreams and imagination. Don’t hold back because you think your dreams our unrealistic. I hope they are unrealistic, they are dreams after all.
Question 2: Imagine that your doctor says you have only five to 10 years to live. You won’t feel sick, but you’ll never know when death will come. What will you do? Will you change your life? How?
This question takes the first one a step further, and ads a touch of reality. In question 2, you’re not financially free to do whatever you want. Instead, it causes you to think more deliberately about your life and your future. It makes you see time as the scarce resource that it truly is. It forces you not to take your time on this earth for granted. So what would you do? Would you work more and spend more time at the office? Probably not. You’d probably hug your children and tell them how much you love them every day. You might write that book you’ve always wanted to write, or learn to dance or speak a foreign language. Who won American Idol would probably seem a tad less important.
Question 3: Now imagine that your doctor says you have only one day left to live. Ask yourself: What did I miss? What did I not get to be or do?
Question 3 to me is the most important. It’s about regrets, and most of us have some. What would you regret not doing, or not seeing, or not being? If you spend some time really thinking about this question, you’ll identify what is most important to who you are and who you want to be. For me, it’s writing a novel. That has always been one of my dreams, and the one thing I’d regret not doing if tomorrow were my last day.
Regards
Lost Soul
Thanks Desmond for your sharing. Although Qn 2 and 3 are good questions to surface things that really matter to you, you have to understand you do not need to consider money for survival as your days are not numbered. Qn 1 would be a better question to answer in my opinion.
Thanks Desmond for your sharing. Although Qn 2 and 3 are good questions to surface things that really matter to you, you have to understand you do not need to consider money for survival as your days are not numbered. Qn 1 would be a better question to answer in my opinion.
Track our past expenses diligently and record it down permanently, then with the past data and forseeable future inflation adjusted expenses, we may be able to over-estimate how much is enough and run through it for sanity check.
Some forseeable future adjusted expenses e.g house maintenace, household appliances replacement, clothing, entertainment and travels, car replacement kids education expenses, medical expenses, etc
We look at how we spend in the past and more or less we are likely to spend on replacement and add some other new expenses when your kids grow up and when we get older.
The more we are aware of the past , the better we will see what may be needed in the future.
Track our past expenses diligently and record it down permanently, then with the past data and forseeable future inflation adjusted expenses, we may be able to over-estimate how much is enough and run through it for sanity check.
Some forseeable future adjusted expenses e.g house maintenace, household appliances replacement, clothing, entertainment and travels, car replacement kids education expenses, medical expenses, etc
We look at how we spend in the past and more or less we are likely to spend on replacement and add some other new expenses when your kids grow up and when we get older.
The more we are aware of the past , the better we will see what may be needed in the future.
I feel that I will be contented when I have a 3 room condo for my wife and my 2 kids, a 2 litre jap car like camry would do, and 1 million in cash and investments….however I am only one quarter on the way there….very demoralizing especially when my peers are all buying audis and bmws and maseritis…
I feel that I will be contented when I have a 3 room condo for my wife and my 2 kids, a 2 litre jap car like camry would do, and 1 million in cash and investments….however I am only one quarter on the way there….very demoralizing especially when my peers are all buying audis and bmws and maseritis…
The last thing you want to do is to give up your dream, chemistry78. You should give yourself a pat for being 1 quarter there. Look at your glass as 1/4 full and not 3/4 empty. Stay hopeful and passionate. Learn how to grow your money and you will achieve your financial goals!
The last thing you want to do is to give up your dream, chemistry78. You should give yourself a pat for being 1 quarter there. Look at your glass as 1/4 full and not 3/4 empty. Stay hopeful and passionate. Learn how to grow your money and you will achieve your financial goals!
that will depends on what dreams you have. being rich or super rich is not a dream, it is a wishful thinking.
being a professional trader or doctor or writer or any other profession is a dream.
that will depends on what dreams you have. being rich or super rich is not a dream, it is a wishful thinking.
being a professional trader or doctor or writer or any other profession is a dream.
Hi chemistry78.
I’m sure most people and not just you would be contented with the type of financial situtation you wished for. However, if you really want to get closer to your goal the first thing you need to do is to stop thinking od owning a car. This is the worst asset (if it can ever be called an asset in the first place). A car would not only drain you of your money, it does not add value to your assets/ cash holdings at all. Do not envy your friends who own maseratis, bmw, audis, etc. these are just for shows. Come to the end of each month, just ask them how much cash / savings they have left.
Hi chemistry78.
I’m sure most people and not just you would be contented with the type of financial situtation you wished for. However, if you really want to get closer to your goal the first thing you need to do is to stop thinking od owning a car. This is the worst asset (if it can ever be called an asset in the first place). A car would not only drain you of your money, it does not add value to your assets/ cash holdings at all. Do not envy your friends who own maseratis, bmw, audis, etc. these are just for shows. Come to the end of each month, just ask them how much cash / savings they have left.
Hi Alvin,
the highest level according to Maslow is self-transcendence. For me, I no longer work for money, neither do I say or do things to please anyone or bother about others opinion and comments. Everyday, I only let my Conscience guide my words and actions, and nothing else. Be True to Yourself and the feeling is indescribable.
Cheers!
Dennis Ng
Self-transcendence
Maslow also proposed that people who have reached self-actualization will sometimes experience a state he referred to as “transcendence,” or “peak experience,” in which they become aware of not only their own fullest potential, but the fullest potential of human beings at large. Peak experiences are sudden feelings of intense happiness and well-being, the feeling that one is aware of “ultimate truth” and the unity of all things. Accompanying these experiences is a heightened sense of control over the body and emotions, and a wider sense of awareness, as though one was standing upon a mountaintop. The experience fills the individual with wonder and awe. He feels one with the world and is pleased with it; he or she has seen the ultimate truth or the essence of all things.
Maslow described this transcendence and its characteristics in an essay in the posthumously published The Farther Reaches in Human Nature. He noted that this experience is not always transitory and/or momentary, but that certain individuals might have ready access to it and spend more time in this state. Not long before his death in 1970, Maslow defined the term “plateau experience” as a sort of continuing peak experience that is more voluntary, noetic, and cognitive. He made the point that such individuals experience not only ecstatic joy, but also profound “cosmic-sadness” at the ability of humans to foil chances of transcendence in their own lives and in the world at large.
Maslow believed that we should study and cultivate peak experiences as a way of providing a route to achieving personal growth, integration, and fulfillment. Individuals most likely to have peak experiences are self-actualized, mature, healthy, and self-fulfilled. However, all individuals are capable of peak experiences. Those who do not have them somehow repress or deny them. Peak experiences render therapeutic value as they foster a sense of being graced, release creative energies, reaffirm the worthiness of life, and change an individual’s view of him or herself. Maslow cautioned against seeking such experiences for their own sake, echoing the advice of the mystics who have pointed out that the sacred exists in the ordinary. Maslow further believed that domestic and public violence, alcoholism, and drug abuse stem from spiritual emptiness, and that even one peak experience might be able to prevent, or at least abate, such problems. Maslow’s ultimate conclusion, that the highest levels of self-actualization are transcendent in their nature, may be one of his most important contributions to the study of human behavior and motivation.
Hi Alvin,
the highest level according to Maslow is self-transcendence. For me, I no longer work for money, neither do I say or do things to please anyone or bother about others opinion and comments. Everyday, I only let my Conscience guide my words and actions, and nothing else. Be True to Yourself and the feeling is indescribable.
Cheers!
Dennis Ng
Self-transcendence
Maslow also proposed that people who have reached self-actualization will sometimes experience a state he referred to as “transcendence,” or “peak experience,” in which they become aware of not only their own fullest potential, but the fullest potential of human beings at large. Peak experiences are sudden feelings of intense happiness and well-being, the feeling that one is aware of “ultimate truth” and the unity of all things. Accompanying these experiences is a heightened sense of control over the body and emotions, and a wider sense of awareness, as though one was standing upon a mountaintop. The experience fills the individual with wonder and awe. He feels one with the world and is pleased with it; he or she has seen the ultimate truth or the essence of all things.
Maslow described this transcendence and its characteristics in an essay in the posthumously published The Farther Reaches in Human Nature. He noted that this experience is not always transitory and/or momentary, but that certain individuals might have ready access to it and spend more time in this state. Not long before his death in 1970, Maslow defined the term “plateau experience” as a sort of continuing peak experience that is more voluntary, noetic, and cognitive. He made the point that such individuals experience not only ecstatic joy, but also profound “cosmic-sadness” at the ability of humans to foil chances of transcendence in their own lives and in the world at large.
Maslow believed that we should study and cultivate peak experiences as a way of providing a route to achieving personal growth, integration, and fulfillment. Individuals most likely to have peak experiences are self-actualized, mature, healthy, and self-fulfilled. However, all individuals are capable of peak experiences. Those who do not have them somehow repress or deny them. Peak experiences render therapeutic value as they foster a sense of being graced, release creative energies, reaffirm the worthiness of life, and change an individual’s view of him or herself. Maslow cautioned against seeking such experiences for their own sake, echoing the advice of the mystics who have pointed out that the sacred exists in the ordinary. Maslow further believed that domestic and public violence, alcoholism, and drug abuse stem from spiritual emptiness, and that even one peak experience might be able to prevent, or at least abate, such problems. Maslow’s ultimate conclusion, that the highest levels of self-actualization are transcendent in their nature, may be one of his most important contributions to the study of human behavior and motivation.
Yes Dennis, I can see you are living your passion and a fulfilled life. I am making my way there
Yes Dennis, I can see you are living your passion and a fulfilled life. I am making my way there
Hi Alvin,
yes, you’ll get there.
ultimately, what do we as human beings really want?
Is it a fancy car or a big house? To me, none of these really moves me nor motivates me. Based on my current financial situation, I can easily buy a nice house and a nice car if I want to, but how does that really make me happy? And it is not really what I want.
At the end of the day, I think what we are ultimately looking for is Happiness and Fulfillment.
Happiness is a state of the mind, we can be happy whether we have S$10,000 or S$1 million. We can also be unhappy as well. The choice is ours to make.
yes, I’m happy and fulfilled. And from now onwards, my priority is not myself nor my family since I have reached financial freedom.
Now my 2 Priorities are:
1. educate the middle class to help them reach Financial Freedom.
2. educate and help the poor financially to help alleviate them from poverty.
I’m doing it not becos I have to do it, but becos I want to do it, as I think it is something I’m “gifted” to do, and doing these 2 things give me tremendous joy and fulfillment.
Cheers!
Dennis Ng
Hi Alvin,
yes, you’ll get there.
ultimately, what do we as human beings really want?
Is it a fancy car or a big house? To me, none of these really moves me nor motivates me. Based on my current financial situation, I can easily buy a nice house and a nice car if I want to, but how does that really make me happy? And it is not really what I want.
At the end of the day, I think what we are ultimately looking for is Happiness and Fulfillment.
Happiness is a state of the mind, we can be happy whether we have S$10,000 or S$1 million. We can also be unhappy as well. The choice is ours to make.
yes, I’m happy and fulfilled. And from now onwards, my priority is not myself nor my family since I have reached financial freedom.
Now my 2 Priorities are:
1. educate the middle class to help them reach Financial Freedom.
2. educate and help the poor financially to help alleviate them from poverty.
I’m doing it not becos I have to do it, but becos I want to do it, as I think it is something I’m “gifted” to do, and doing these 2 things give me tremendous joy and fulfillment.
Cheers!
Dennis Ng
I was feeling fairly unhappy and read up on “psycanics”…..this is an interest science on the self mastury of yourself…you can google it…it may help you to feel in a different light… and thanks all for the encouragement….yes I am still working towards my goals….and I believe tenacity and determination is important as well as time…1 year ago I was really at a low point…almost sacked from my job…..and my portfolio was down and weak….now things are looking up….with a bit of luck I made about 100k from property and unit trusts in the past year…in my early years I do not invest as I was earning quite alot…but I realise that unless I am really earning alot…I won’t be able to reach financial freedom in time…so you have to invest your hard earned money….but prudently….although I been lambasted for being obsessed with money…I am not obsessed with it per se….but for the security it gives me….once I hit my 1 million…I also hope to share and help others like what Dennis is doing…
I was feeling fairly unhappy and read up on “psycanics”…..this is an interest science on the self mastury of yourself…you can google it…it may help you to feel in a different light… and thanks all for the encouragement….yes I am still working towards my goals….and I believe tenacity and determination is important as well as time…1 year ago I was really at a low point…almost sacked from my job…..and my portfolio was down and weak….now things are looking up….with a bit of luck I made about 100k from property and unit trusts in the past year…in my early years I do not invest as I was earning quite alot…but I realise that unless I am really earning alot…I won’t be able to reach financial freedom in time…so you have to invest your hard earned money….but prudently….although I been lambasted for being obsessed with money…I am not obsessed with it per se….but for the security it gives me….once I hit my 1 million…I also hope to share and help others like what Dennis is doing…
Hi chemistry78
Don’t get demoralised when you see what your peers are buying. This is the classic “keeping up with your neighbours” game that is fairly common when we are still building up our careers. This game is one that nobody except that sellers of conspicuous consumption items wins. If you need a car for convenience and to ferry children and family around, cool.. but if keeping up with what your peers buys is what makes you happy then it’s more a “keeping up with your neighbours” game and you won’t be happy so long as your neighbour has the bigger, better, newer, shinier TOY of the month than you!
Be well and prosper.
Hi chemistry78
Don’t get demoralised when you see what your peers are buying. This is the classic “keeping up with your neighbours” game that is fairly common when we are still building up our careers. This game is one that nobody except that sellers of conspicuous consumption items wins. If you need a car for convenience and to ferry children and family around, cool.. but if keeping up with what your peers buys is what makes you happy then it’s more a “keeping up with your neighbours” game and you won’t be happy so long as your neighbour has the bigger, better, newer, shinier TOY of the month than you!
Be well and prosper.
just to share with you guys that there is an “updated version” of the pyramid that now includes the concept of “beauty” & “truth” after self-actualization.
just to share with you guys that there is an “updated version” of the pyramid that now includes the concept of “beauty” & “truth” after self-actualization.
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