How to Understand the Marginal Utility of Money

“Marginal utility of money is the amount of value (happiness) gained from an increase amount of money available to you. This value changes depending on how much you already have stache’d away.”

We tend to focus so much on getting money that we overlook the reality that the more money we have, the less valuable it becomes.

The Mr. Money Mustache blog breaks down how to understand the marginal utility of money including tips about how to define your personal value of an additional dollar and recognize the diminishing return in earning more money.

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