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Here's how much money is 'enough,' according to Jim Cramer

Dec 14, 2015, 21:35 IST

Astrid Stawiarz/GettyJim Cramer.

There's nothing wrong with wanting more.

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In fact, some successful people say what separates the wealthiest people from the masses is their willingness to think big, their relentless ambition, and their refusal to settle.

But how much is enough? When it comes to wealth, specifically, how do you determine how much money you need?

Jim Cramer, cofounder of financial site TheStreet.com and host of CNBC's "Mad Money," answered this in a recent episode of Farnoosh Torabi's "So Money" podcast.

It all boils down to determining what expenses or extravagances are important to you, he says. Go after the income required to spend without guilt on whatever those extravagances may be, and then live frugally in respect to all other aspects of life.

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"I am a big believer in finding something that you really like that's expensive," he explains to Torabi. "You can put your money on that, and then be frugal besides that."

As for Cramer's big expense, it comes around every Sunday afternoon during football season: "I am a Stanley Frugal except for my box at the Philadelphia Eagles games," he says.

Besides his box seats - and one nice vacation a year, he tells Torabi- he hunkers down when it comes to other expenses and still challenges himself to spend less every month, despite his financial success.

"How much you need is totally dependent upon the extravagance," Cramer says. "My wife and I are of the same ilk: We're not crazy about spending, but when we do it, we do it big."

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