I've been recently pondering this as well. I live close to the beach, about a half mile from the ocean, and the people at the end of my street are on deep water, but that's not the end all for me. We live in a modest house(400-500k) and live comfortable. We have a condo up the street that we rent, and that, with our investments, will be our retirement(we are both 30 now). I pay an extra $1,000 a month on my mortgage so that I can have it paid off in 10-12 years, barring any unforseen circumstances. Our cars are paid for and we can live how we want. We recently took a two week trip to Europe, and have standing vacation every winter in St. Maarten. I own a construction company, that in a few years when my wife is hopefully done working, will support us. I thought about getting a bigger house, or a new car, but I thought, why? If I do that, I won't be able to take the trips that we take, or go out to dinner on the weekends. Financially stable, for me is happiness, becasue having a load of debt can really do a number on you. Americans are like that though, if they can afford a 400k house, they get a 600k house, and then wonder why they have no money. You hit the nail on the head Bay, going places, seeing things, and creating memories are much better than having material things that just take up space.