How much money would you need for financial freedom or happiness? According to Binance founder Changpeng Zhao, most are likely to achieve financial freedom with $10 million and money above $100 million no longer matters for happiness.
“For almost everyone on earth, $100 million is enough,” Zhao said in a “Crypto Banter” podcast episode released on May 9. “You can go way below that. That’s a big number, but I think $10 million is enough for financial freedom if you live a normal life.”
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According to the cryptocurrency billionaire with a net worth of over $112 billion, money is unlikely to make one happier beyond $100 million. He added that beyond $50 million, the impact of money on happiness begins to diminish.
Researchers have long tried to answer the question of how much money is needed for financial freedom or happiness. Among the most cited efforts is the so-called Trinity Study, which recommends holding 25 times one’s annual expenses, evenly split between stocks and bonds, with a 4% withdrawal rate for 30 years.
While benchmarks like the 4% rule offer a general framework for retirement planning, determining what “enough” looks like in practice often depends on income stability, spending patterns and long-term tax strategy. Some investors explore matching with a financial adviser to better understand how different withdrawal approaches and portfolio choices could affect long-term financial independence.
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However, when it comes to happiness, the more money you have, the happier you are likely to be and there may be no ceiling, according to a 2024 study by University of Pennsylvania Wharton School senior fellow Matthew Killingsworth. The study found that wealthy people were significantly happier than the middle class.
“I think a big part of what’s happening is that when people have more money, they have more control over their lives,” Killingsworth told CBS News in 2024. “I suspect it’s much more fundamental and psychologically deeper than simply buying more stuff.”
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