How Much Money Do You Need to be Happy ?

I've estimated health care costs at $20k / year. Home ownership expenses come to an additional $16k (but that includes cable, internet and phone for 2k/yr) . Food is another $5k. At a 50k salary lets say we have 5k in taxes. Leaves 4k for "everything else". I don't see that as enough for me to be "happy". I'd be out of my mind with worry without my 3k/year "future one time expense" budget and my 2k/year "misc purchases" plan.
 
The fact that I can be happy will some does not mean at all I can't be happier with more...
 
MichaelB said:
The fact that I can be happy will some does not mean at all I can't be happier with more...
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What you say is consistant with the research. However the research suggests that your marginal happiness will be only marginally higher.

If it's then true that more makes you (marginally) happier, then by striving for more you just may make yourself less happy by continuing to work.

The paradox of more !
 
I only THOUGHT I was happy when I made 50k a year --- then reality struck and I realize now that I was just naive (or put another way, I was obilivious the risks of potential financial ruin that I am all too keenly aware of now)
 
If I had guaranteed income for live of $25K/yr after-tax(cola'd) and didn't have to work to get it, i'd be happy. If I had to work, i'd need 2x as much to be equally happy. Actually, i'd prefer the $25K/yr if it meant not needing to work.
 
No amount of money would make one happy until he/she stops the craving for more and discontentment for which more wealth, status or power is not a cure.
 
aaronc879 said:
If I had guaranteed income for live of $25K/yr after-tax(cola'd) and didn't have to work to get it, i'd be happy.[-] If I had to work, i'd need 2x as much to be equally happy. [/-]Actually, i'd prefer the $25K/yr if it meant not needing to work.
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This is pretty much my feeling, too. Once I realized I could generate $25k-$30k a year in investment income (monthly and quarterly dividends only, not irregular cap gain distributions) without a whole lot of risk, I could stop working and be happy. That happened in late 2008. Now, I'm set. :)
 
aaronc879 said:
If I had guaranteed income for live of $25K/yr after-tax(cola'd) and didn't have to work to get it, i'd be happy. If I had to work, i'd need 2x as much to be equally happy. Actually, i'd prefer the $25K/yr if it meant not needing to work.
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Ever consider a military career? A 20 year pension, even at a modest enlisted grade is equal to around $25K, and it's COLA'd. You seem like a bright guy, and you could get into a specialty that has a reasonable chance of keeping you out of harms way. It would beat the rigors and the ups and downs of factory work.

Better act soon though, 33 is pushing the age limit, and there's talk of changing the retirement plan.
 
I've been very happy with a 'take-home' of $65K. I've been miserable with a 'take-home' of $145K. I find the stress of making more money to be detrimental to about everything; health, relationship, etc. That's why I'm pulling the plug this year and retiring. I have enough to make ends meet and to enjoy the things I find enjoyable. I have the $65K annual with my retirement funding plus some and will get a nice raise in 6 years with SS at 62 kicking in another $2500 a month for me and DW.
 
Spanky said:
No amount of money would make one happy until he/she stops the craving for more and discontentment for which more wealth, status or power is not a cure.
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+1 Nice observation. Some people just can't get enough money to stop that craving and discontentment.
 
Spanky said:
No amount of money would make one happy until he/she stops the craving for more and discontentment for which more wealth, status or power is not a cure.
Click to expand...
+2. We spend quite a bit less now than we did a decade ago, and if anything we're probably happier. When I got my first job making $15.6K/yr I was ecstatic, wondered how I would spend it all.

No idea what the $ number is (though I've read $50K/yr before as well) but once you have enough to take care of basic needs, the excess provides marginal benefit. Unhappy wealthy people are everywhere, just check out any TV, magazine or other tabloid.
 
The caveat is the home ownership and the health care. Eliminate those two factors, and costs are drastically reduced. Some folks despise the w*rkplace to the point that they'll rent a small apartment and roll the dice on medical expenses.
 
BLS53 said:
Ever consider a military career? A 20 year pension, even at a modest enlisted grade is equal to around $25K, and it's COLA'd. You seem like a bright guy, and you could get into a specialty that has a reasonable chance of keeping you out of harms way. It would beat the rigors and the ups and downs of factory work.

Better act soon though, 33 is pushing the age limit, and there's talk of changing the retirement plan.
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I wouldn't consider it at my age. I don't have the physical build even to get thru basic training. I'm 6'6 1/2" and weigh 159lbs.
 
I'm pretty happy most of the time - not ecstatically so, but I have a general level of contentment that suits me just fine. I've always been this way. I'm creative and think I could maintain this level of contentment down to an income of around $10-12K. Living on that income would be a challenge, and challenges make me feel alive - and happy :)

I was a bit happier when I was working and felt as if I was going somewhere with my life. My current level of overall contentment will ramp back up to a more exuberant type of happy when I develop and follow a new major goal (fulltime Rv'ing perhaps?)

It doesn't take much IMO.
 
IIRC some of the studies concluded that people feel happier about their wealth when they have more than their neighbours/relatives/peers etc.

For my part, I became a lot happier when (i) I realised that I craved freedom from the rat race more than "more" and (ii) I concluded that the finishing post was in sight (end 2012 or early 2013).
 
traineeinvestor said:
IIRC some of the studies concluded that people feel happier about their wealth when they have more than their neighbours/relatives/peers etc.
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Well I don't know about the studies but I can tell you that I personally would really enjoy a lifetime of gloating over the in-laws.

I could them tell them frequently how they are doing everything wrong and how screwed up their life is.
 
Happy doesn't preclude clueless

I can see a lot of people being happy in the moment consuming 100% of a $50k income...but being clueless that they're setting themselves up for a long run of unhappiness when that $50k income stops and they're suddenly broke/stressed.

It's yet another variant of The "only thing that matters is my income because that determines what I can consume right now" cultural pre-disposition.

A lot of people were "happy" being leveraged to moon and living in their McMansions...right until they weren't and it turned out the McMansion was a prison trapping them for years-upon-years.

I've found my happiest moments are when I have balance: living, saving, working, raising the kids, exercising and donating. Let any one get away from you for too long and it will get uncomfortable quick.
 
IIRC some of the studies concluded that people feel happier about their wealth when they have more than their neighbours/relatives/peers etc.
Click to expand...
I've read it too and I am sure a lot of people live their lives on that basis, but it's very sad. As if happiness is a competition with others, and there have to be 'losers' for some people to be "happy." If you believe it, I guess you'd never stop working to make sure you accumulate more wealth than all others to be "happy."

OTOH, I was just watching a piece on TED that suggested the more people spend on others (and less on themselves) the happier they are and vice versa. Their hook was you can buy happiness (by spending/giving more money on/to others).
 
krotoole said:
A lot of people were "happy" being leveraged to moon and living in their McMansions...right until they weren't and it turned out the McMansion was a prison trapping them for years-upon-years.
Click to expand...

Best description I've seen of "The McMansion Lifestyle".
 
How Much Money Do You Need to be Happy ?

For us, it's simple. Just a dollar more than we currently spend, to live life as we wish (and we live life, well :cool: )...
 
Money is an objective thing - we can all agree what $50000 is.

Now happy - that is a a strange concept. I'm not even sure I can tell you what it really means as it tends to come and go for me. Maybe it's like a virtual particle in physics?

P.S. I'm sort of happy writing this at the moment.
 
Some good posts and I certainly agree that money doesn't equal happiness. at some point it is more productive to stop trying to get a better income and focus on being happy with the income you have.
 
Health and happiness are priceless at any income level;)
 
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