How much $ would noticably improve your financial situation?

[nereo]

from what I've seen, the more savings one has, the more additional money it takes to have a sizable change in one's financial situation.
But it's not just about the total number of dollars in savings - expenditures (i.e. 'debt'), salary and lifestyle play a roll too. For example, a thousand bucks might have a big impact on someone who is low income and has little in savings, but that amount might not change a thing for a FIREe in the two-comma club.


Rather focusing on savings rate or % towards FI or similar metrics I'm curious where people stand on the "how much money would it take to move the needle" aspect.

EDIT:  to respond to comments I've changed the larger categories.  Also, the gist of the question is: "what amount would make you feel noticeably better off".  Yes, it's subjective, and that's the point.  Put another way, image you got an unexpected inheritance.  What amount would make you go from "gee, that's nice" to "wow - this changes things!"

[Philociraptor]

I'd say you may need more choices on the high end to more accurately capture everyone. Thinking a majority on this forum are going to pick the highest option already.

[Boll weevil]

I don’t understand what you’re asking.

First off, are you asking about net worth or income over some time range (per year, per month, per week, etc.)

The other thing is what is meant by “sizable change to financial situation”... the point at which you stop stressing about money, or the point at which you consider money no object and you start to spend frivolously?

[EscapedApe]

With a sudden windfall of $25K, I could pay off all of my debts and actually start the countdown to RE.

I don't know that it would really impact my lifestyle at all, but it would definitely make me feel better.

[RWD]

It would probably take roughly half a million to feel like we jumped from our current stage of the financial journey (very comfortable but still have to work) to the next (enough money to stop working whenever). Anything in between, while reducing the few required number of years of work remaining, would not make us feel noticeably different about our financial position.

[FIRE 20/20]

I'm FIREd, so another $100k probably wouldn't change anything.  Another $100k would just change the odds that I'll need to cut my spending or go back to work from some unknowable % (maybe 5%?) down to a slightly smaller unknowable (4%?).  So - even $100k doesn't do anything noticeable for me. 

Now an extra $500k or million or something, that's so much that we'd really have to figure out if there's anything we want in life that we didn't budget for in our FIRE plans.  I suppose we might buy a nicer house without neighbors nearby, or dump a bunch of money into our Donor Advised Fund.  I suspect that distributing more substantial amounts of money to the charities we support might feel pretty good.  But really we FIREd after we passed the point where we thought more money would improve our lives. 

[Davnasty]

I agree the question is too broad.

If I were to answer in the literal sense of "would I notice it if this amount appeared in my accounts?", the answer would be <$1,000. The other way I might look at it is "would I do something different tomorrow if it appeared in my accounts?", then it would basically need be enough to FIRE. Any amount between that and I would run the numbers and adjust my FIRE date.

[Zikoris]

With no debt, low expenses, a solid net worth, and nothing we're saving up for other then retirement, 300-400K would be the only thing that would make a difference, since it would push us over the FIRE line. Anything else would just bolster our investments.

[fattest_foot]

About 2 years out from FIRE now, and $100k represents less than a normal year of gains at this point (unless it's a bad market year).

So really, anything under $100k doesn't really change much. Sure, $25k would mean maybe quitting two months earlier, but it's all kind of a wash at this point (OMY may take hold). A windfall of $300k (before taxes) means we consider pulling the plug as soon as possible after re-running the numbers. Anything else is kind of just gravy.

[dcheesi]

I agree the question is too broad.

If I were to answer in the literal sense of "would I notice it if this amount appeared in my accounts?", the answer would be <$1,000. The other way I might look at it is "would I do something different tomorrow if it appeared in my accounts?", then it would basically need be enough to FIRE. Any amount between that and I would run the numbers and adjust my FIRE date.

Yeah, aside from what you have now, the other big variable is your financial goals. For some people, it might be getting out of debt, or taking more vacations, or a new car. Others might be saving up for a home purchase, etc. But for most people here, it's going to be achieving FI, and that's a rather large number by comparison.

[DadJokes]

As someone starting out, an extra $100k today would nearly double my net worth but would only reduce my future working life by 11.3%, which doesn't seem too dramatic. On the other hand, I'm excited if I find $20.

[Tacopwr]

I chose $5k-$25k.

An extra $25k of income per year would move my FIRE date up 3 years, or would increase my 'stache by almost 70%. That would certainly be noticeable.

Funny enough, my partner makes almost exactly $25k per year more than I do. Maybe this exercise is an example to get her saving more...

[StarBright]

We are in a place where we are close to being able to live off of my DH's income, but it would be REALLY tight when it comes to house maintenance/needing a new car. So we are probably a few years away from me cutting back/quitting.

I chose 25-100k because I think if we came into 50k it would put us in a place where I could downshift. It would be enough money to replace our 14 year old car, replace our furnace, and put in a new fence (All the things that are on our to-be-replaced list for the next few years) with a bit more left over for emergencies.

Similarly,  just under 100k could knock out our mortgage which would then free up that mortgage money to cash flow replacements.

When I first read the question I did think 100k+ would be my answer, but when I thought about it a little longer I realized that less than that would allow us to change our lives if we were brave enough to take the leap.

If this is an annual number as opposed to a one time - 5-25k would do us just fine. If DH made 10-15 k more we'd be set!

[bbates728]

After crossing the $0 mark in April and this week being the last week that I have debt, I would say that $25k-$100k would make me feel more stable in our financial life. At $100k, we would have purchased about three years of expenses if things were to go south. It would also cut down my timeline by a year or two which would help me frame my upcoming job search as finding either my last job or second to last job instead of having to continue building a resume.

So yeah, I think $100k would significantly change our situation positively.

Why do you ask?

[Psychstache]

It would probably take roughly half a million to feel like we jumped from our current stage of the financial journey (very comfortable but still have to work) to the next (enough money to stop working whenever). Anything in between, while reducing the few required number of years of work remaining, would not make us feel noticeably different about our financial position.

+1

[OtherJen]

$53k would pay off our mortgage. We have no other debt. With the mortgage gone, that would free up several hundred dollars per month that could be added to our investment accounts.

[JLee]

None of those amounts would materially change anything -- none of them are enough to render me FI, so it'd just get dumped into VTSAX or used to pay for something.

[Schaefer Light]

If you handed me $300k, I'd quit my job first thing in the morning.  So I'm going with $300k ;).

[Fi(re) on the Farm]

I'm $100,000 short of my goal so if I got anywhere close to that I'd retire. Otherwise it doesn't make too much difference.

[Milizard]

$250k more, I might seriously consider quitting. My DH wants me to quit anyway, because of my attitude since starting this job. I'm afraid I may never find anything else if I do. A little more net worth makes that not matter so much.

[Wrenchturner]

$150k would buy me a part time seasonal work life.  That's actually my goal right now!  I dont really mind working so I'll probably never fully FIRE, I just want to work more on my terms.  I'm sure my goal will change once that's achieved.

[nancyfrank232]

What amount would “noticeably change my financial situation”?

We’re at $5m so to be honest, $50k or even $500k wouldn’t “change” anything

I think $2m would start changing things, although I obviously wouldn’t object to taking any amount of $

However having said that, I’m not sure what you’re getting at OP?

[Cranky]

A million dollars? I’m not sure what we change my life.

I’m already retired, dh will retire in 2 years, we’re debt free - money won’t really change anything.

[honeybbq]

Agreed with everyone else, add a 0 to the last option and we'd be talking.

We inherited around 500k and just stuck in VTSAX and went about our business.

But I'm older and more solidified in my position, so the numbers need to be vastly larger to make a difference.

[MonkeyJenga]

I can't change my vote, but it would be 250k+. I'm already FIRE with a low WR. The one big unknown expense is long-term healthcare, and if things really go bad there, 100k won't be enough.

[Xlar]

I can't change my vote, but it would be 250k+. I'm already FIRE with a low WR. The one big unknown expense is long-term healthcare, and if things really go bad there, 100k won't be enough.

Can you update the poll to allow us to change our votes? Adding a category that is 250+ means that a lot of votes that were 100+ are now 100-249...

[Villanelle]

I think it would need to be at least $500,000, and perhaps even more than that.  I recognize that as an obnoxiously large number.  But I'm not working and DH will likely work at least another 4 years for reasons outside money.  By the time he gets to that point, we will be FIRE.  An extra $100k, for example, means $4000 a year.  I don't see that really affecting our lifestyle in a way that would feel significantly different.  Probably an extra or longer vacation each year and increased charitable donations.  At half a million and an additional $20,000 a year, things would change in a way that wasn't just a few more fun, but appreciated, things.  Like taking a group of people we love on vacation every year, finding part of college for friends' kids, considering building a dream home from scratch, etc. 

[tipster350]

$100-$250k would bring me to my FIRE number.

[nereo]

I can't change my vote, but it would be 250k+. I'm already FIRE with a low WR. The one big unknown expense is long-term healthcare, and if things really go bad there, 100k won't be enough.

Can you update the poll to allow us to change our votes? Adding a category that is 250+ means that a lot of votes that were 100+ are now 100-249...

Apparently not.  It seems all-or-nothing (delete and restart or let it run as is).  Too bad...

[use2betrix]

Noticeably is a pretty broad term.. We just crossed $500k last weekend and have been socking away $10k-$15k a month, so it would take a large amount to feel like it has an impact.

If I was given $500k tomorrow, nothing in my life would change. If I was given $1MM tomorrow, I still don’t think anything in my life would change (I’d probably replace our 20 year old Camry with either of those). My income is too high based on the work that I do that my savings is still growing so much faster than my investments would.

To quit my job tomorrow, I would need around $1.5MM to $2MM.

If my income was significantly lower, my answer would be very different.

[mountain mustache]

I took this as an amount of money yearly, as in a salary increase situation. I put $5-$25k because I am really happy for the most part with my current income, but that amount of money extra a year would increase my savings rate substantially since I make a pretty low ($38k/year) income right now.

[dodojojo]

100K, I would set a quit date within a couple of months and start looking for a job immediately.

500K, I would quit, take a break, travel a bit and look for a job.

1M, I would quit and FIRE as this amount would bring me almost exactly to my FI number.  I would consider some part time/contractual work down the road for a bigger buffer.

Ha, all scenarios revolve around quitting my job...

[Villanelle]

I took this as an amount of money yearly, as in a salary increase situation. I put $5-$25k because I am really happy for the most part with my current income, but that amount of money extra a year would increase my savings rate substantially since I make a pretty low ($38k/year) income right now.

There is no mention of "annually" or "per year".   I interpreted it to be a one-time lump sum.

[nereo]

I took this as an amount of money yearly, as in a salary increase situation. I put $5-$25k because I am really happy for the most part with my current income, but that amount of money extra a year would increase my savings rate substantially since I make a pretty low ($38k/year) income right now.

There is no mention of "annually" or "per year".   I interpreted it to be a one-time lump sum.

that was the intent, as referenced by the 'unexpected inheritance' example.  It would be a much different question if it were "annually" (at which point I'd be a bit shocked that so many people responded >$250k).

[APowers]

What a great question!

For me, having just-barely-maybe-not-quite lean-FIRE...

$5k would be a nice windfall, but wouldn't really make a huge difference.
$25k would be over a year's living expenses. I wouldn't change my lifestyle over it, though.
I voted for: $100k because it would instantly put me into completely FIRE territory, and I would start actively rearranging my life to have fewer employment-type commitments.
$250k would prompt me to start making a lot more travel plans, plus actively look for ways to use excess passive income for charity.

[BussoV6]

250K would get me over the line.

[jlcnuke]

Came in to select the closest option to $500k. Was really surprised at how low the options were. Now, if you were asking how much of annual salary increase would noticeably improve things, then I'd think the current choices were reasonable options...

[Linea_Norway]

I chose $25,000 to $100,000. We are currently trying to sell our house and need a certain minimum amount to be able to FIRE. But we hope that the house will sell for the named sum more than our minimum FIRE sum. That would mean that buying our home wasn't a super bad financial disaster and it would give us some more margin in our FIRE budget.

[kanga1622]

I'm too early in the game for a smaller amount to really make a noticeable change. Drop a million on me and we'd be able to adjust our work schedules and dial back on our current savings rate. If we were closer to retirement, a much smaller amount would push us into making significant changes.

[Xlar]

I can't change my vote, but it would be 250k+. I'm already FIRE with a low WR. The one big unknown expense is long-term healthcare, and if things really go bad there, 100k won't be enough.

Can you update the poll to allow us to change our votes? Adding a category that is 250+ means that a lot of votes that were 100+ are now 100-249...

Apparently not.  It seems all-or-nothing (delete and restart or let it run as is).  Too bad...

Oh, that's a silly design!

[blackd1]

I guess 5000$ per month is ok for me :D

[Stachetastic]

If I suddenly came into 100k, we would buy more rental properties and one of us could quit work to manage them full time. It wouldn't be "retire to Bali" money, but it would be enough to rearrange our professional lives. One of us would still need to work for the healthcare benefits.

[okits]

$250k (about $325k Cdn) and I'd be aggressively pushing my DH to downshift immediately.  I'm downshifted already.

[Hirondelle]

I wouldn't vote for an amount that pushes me over my FIRE number as I think much less would already 'noticably improve' my finances.

Current NW is slightly north of €50k so I voted €25-100k as another €50k would change things psychologically and be about 2y worth of savings (and 4 years of expenses).

[2sk22]

I'm too early in the game for a smaller amount to really make a noticeable change. Drop a million on me and we'd be able to adjust our work schedules and dial back on our current savings rate. If we were closer to retirement, a much smaller amount would push us into making significant changes.

Similarly, for those well past FI, even $250k would not be enough to make much difference.

[2Birds1Stone]

I'm lean FI, so an extra $250k+ would definitely change things for me quite drastically, in terms of available monthly funds to spend. I don't think it would change my lifestyle much/at all. Could opt for slightly nicer housing, and a bit more travel throughout the year.

[bigchrisb]

I'm past FIRE, and still working part time for interest.  My wife still works full time.  I  don't think any of these categories would really change what we do much - since I quit working full time in 2017, my net worth has  actually risen about $700k.  I stress less about spending on things we enjoy, but we haven't made wholesale changes because of the money.

[slappy]

With a sudden windfall of $25K, I could pay off all of my debts and actually start the countdown to RE.

I don't know that it would really impact my lifestyle at all, but it would definitely make me feel better.

Same here.

[jinga nation]

USD 250k and we'd be in the 2 comma club in just stock/bond investments (brokerage and retirement accounts), not counting home equity and residential real estate holdings.
One parent might become SAHP or part-time consulting gigs, and spend more time on fitness activities.

[Raenia]

An unexpected windfall of 10-25k would make a big difference in short-term quality of life, as we would have the cash-on-hand to make some home improvements that we are currently delaying.  It would not make a significant difference long term.

100k or more would make a significant difference to our savings, and would actually accelerate FI (not sure how much, I'd have to calculate it out).

To actually change our lifestyle significantly - I'm thinking allowing a SAHP when we have children - we'd need to be much closer to our FIRE number.  Maybe 500k would get us to the point of being comfortable going to one income.

I selected 100k-250k on the poll, as that would be enough to make a long-term improvement in our situation.