Money is not required for happiness, but with the lack of defined-benefit pensions and the doubtful state of social security, money actually IS required for long term stress-free existence.

You don't need much money for cars, vacations, fun activities, food, etc.

You do need money for these things:

Housing: When you have kids that ghetto crashpad just won't cut it anymore. You will need $200-600K in most urban locations.

Kid's college: $100K/kid is safe number I guess. You could just plan on sending them to state school, but depending on their desired career a name-brand school might be better. Some kids can work and do school or get scholarships (probably everybody on this forum), but others may not have that drive.

Retirement: Assume you'll retire at 65 and live until age 95.

-Bad news: your retirement is no longer funded by your employer, it comes directly out of your paycheck and YOU have to plan for it and have the discipline to save.

-Good news: You, not the management con artists, have control of your retirement money.

- At age 65 you will be active, let's assume you (and the spouse) will need $80K/year to do fun stuff and buy presents for the grandkids. That's $40K/year for each of you. As you age you will need less money for activities, but more for medical expenses...lets assume that by age 95 you need $120K/year for a nursing home...average the two and you need $80K/year (in 2007 dollars) during retirement. 30 years x $80K = $2.4 Million !!!

-Let's be optimistic and factor in $20K/year social security...now you each need 60K/year or $1.8 Million each.

You can probably get to $2-3 Million if you max your 401K and Roth IRA starting at age 22...assuming the stock market suffers no permanent catastrophe (nuclear war, global warming, running out of petroleum, etc). If you start later, you'd better plan on being a wide-body captain or starting a side business or something...