Here’s Why Getting $1 Million in the Bank Didn’t Change Ramit Sethi’s Life

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Ramit Sethi says money is about meaning, not a number. Here’s why having $1 million saved didn’t change his life. 

If you don’t have $1 million in your bank account, you may assume that amassing so much money would be life-changing. But that’s not necessarily the case for everyone.

In fact, finance expert Ramit Sethi explained on Twitter why having a seven-figure bank balance did not change his life and, by contrast, why meeting certain other milestones did.

Here’s what Sethi had to say, along with some advice on how you can achieve life-changing money milestones of your own.

Hitting the $1 million milestone didn’t change Sethi’s life

According to Sethi, amassing a $1 million bank balance did not change his life because his idea of financial success isn’t focused just on numbers alone.

“Do not build a life where you think that ‘some day’ with a magical number, suddenly you will start living your Rich Life,” Sethi said. Instead of experiencing a mindset shift when he became a millionaire, Sethi believes you can live a “rich life” every day through the smart financial decisions you make over time that give your life meaning.

To demonstrate this, Sethi gave some examples of things that did change his life, including being able to pay a personal trainer, buy expensive food, and have a sufficient amount of money not to have to think about paying for unexpected expenses, appetizers, or groceries.

These milestones changed his life more than becoming a millionaire did because they affected his ability to live as he wanted on a day-to-day basis. By contrast, simply hitting the $1 million mark didn’t make as much of an impact because “money is about meaning, not a number.”

What money milestones would change your life?

For far too many people, hitting a certain financial target becomes the focus of their money goals. It’s not necessarily wrong to feel like you want $1 million — or some other target number — in your brokerage account.

But if you get too caught up in thinking about how much you’re trying to save for your future, it is far too easy to lose sight of what would actually make you — personally — feel happier and more secure financially given your past experiences with money and your future goals.

Sadly, if your focus is just on numbers alone, then you may find when you hit that target number (if you do), that you still don’t get to really enjoy your money because you haven’t created a philosophy focused on how you’ll use your cash as a tool to improve your life.

Rather than just setting a numerical financial goal, take the time to think about what milestones would make a meaningful impact on your happiness both now and later. This will be different for everyone. If you love cars, for example, being financially secure enough to buy a fancy sports car may be the money goal that would get you excited, and there’s nothing wrong with that.

By defining what you want your money to do for you, you’re more likely to be financially successful because it will be easier to stay motivated with your financial goals. And you can also enjoy your life more because you’ll be using your hard-earned cash in a way that provides the most value over time.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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