a new 'how much money to be happy' study

[Mdlerth]

Our ambitions are a strong function of our current horizon

I'm not quite sure what to make of the results of this study. Since the salary level for "broad life satisfaction" in the U.S. (for a single, not a family) was found to be $105K, and something like 90% of all individuals make less than $100K/year, does this mean that (generally speaking) the vast majority of people in the U.S. are not broadly satisfied with their lives? Perhaps, but I'm a bit skeptical.

Excellent point. Since the article presents some conclusions based on the study, but not the study itself, I would not use it as a guide for decision-making. Above all, I would not let it tell me whether I have enough money to be happy.

It reminds me of an analogous study reported in the WSJ some 35 years ago. People in different income ranges were asked a question something like "How much more income would it take for you to be 'all set'?"

I can't remember the exact criteria for 'all set', but it meant some improvement in living standard that respondents could identify with and which they expected would obviate perceptions of being in financial straits.

The answer was a surprisingly uniform increase of ~30-40% over what they already earned. So folks making 10k (in 1983 dollars) typically wanted 14k, and folks making 100k wanted 140k. There weren't a lot of responses saying "I need billions to be happy."

Similarly, the respondents in the OP's study seem to believe that financial "happiness" lies somewhere north of their means but within plausible striking distance.

 

[aaronc879]

When my wage income peaked in 2000 at about $74k, I was at my peak in misery. After I switched to working part-time in 2001 and saw my salary nearly halve, I became happier. When I reduced my salary by another 40% in 2007, I became happier. And when I ERed and reduced my income by 100% of what little was left, I became even more happy!

This would be the result for me as well. I could make $200K/yr and I would still be unhappy working full time. I would be much happier not working and living off $30K/yr than working and living off any amount.

 

[RetiredAt55.5]

No - it's highly individualistic.

There is just some number above which people become less worried about financial issues/outcomes. Again - it totally depends on the individual and their cost of living.

+1

$105K sounds like a fair amount of money. But, if someone is paying high healthcare premiums and has high deductibles, that $105K could easily be $70-$80K (or less) after subtracting those expenses.

That's just one example.

 

[NW-Bound]

This would be the result for me as well. I could make $200K/yr and I would still be unhappy working full time. I would be much happier not working and living off $30K/yr than working and living off any amount.

What if that full-time work is 1) something you like to do, and 2) you are with people whom you like working with?

I always had the 1st. The lack of the 2nd quality was why I stopped.

 

[aaronc879]

What if that full-time work is 1) something you like to do, and 2) you are with people whom you like working with?

I always had the 1st. The lack of the 2nd quality was why I stopped.

I can't imagine any full time job being something that I would want to do more than have the time to use as I choose. If I were able to work from home on my schedule then that may be ok.

 

[IMATERP]

I am LOTS happier with a place to live and knowing where my next meal is coming from, than otherwise. It's nice to be able to afford heating and AC as needed, too, internet, and medical care when I need that.

But once my basic needs are met, I am pretty happy. So, probably $30K is a closer estimate for me than $95K. I do spend more than $30K, because I can, but I don't think I need to do that in order to be happy.

+1

30K is my fixed annual number and I am HAPPY. It covers my 1/2 of everything. Wife will do about the same when she chooses to ER. She just happens to like that nasty thing that we used to call w*rk.

 

[Dtail]

This would be the result for me as well. I could make $200K/yr and I would still be unhappy working full time. I would be much happier not working and living off $30K/yr than working and living off any amount.

+1 nothing better than retired.

 

[albireo13]

being happy is a fleeting, temporary state of mind.
Life is all about ups and downs.
Noone is going to be happy all the time, and shouldn't expect to be.

My goal is to be "at peace"