 |
|
How Much Money Do You Need to be Happy ?
05-03-2012, 02:16 PM
|
#1
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
|
How Much Money Do You Need to be Happy ?
Evidently, it doesn't take all that much to live La Dolce Vita.
What Am I doing striving to hit a higher number ?
How Much Money Do You Need to Be Happy? - Yahoo! News
 Quote:
|
The research found that an annual salary of $50,000 represented a significant tipping point in determining happiness and personal satisfaction.
|
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
05-03-2012, 02:31 PM
|
#2
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,866
|
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.
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11
ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
|
|
|
|
|
05-03-2012, 02:40 PM
|
#3
|
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
|
The fact that I can be happy will some does not mean at all I can't be happier with more...
|
|
|
|
|
05-03-2012, 03:03 PM
|
#4
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
|
Quote:
Originally Posted by MichaelB
The fact that I can be happy will some does not mean at all I can't be happier with more...
|
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 !
|
|
|
|
|
05-03-2012, 03:10 PM
|
#5
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2012
Location: Tampa Bay Area
Posts: 1,866
|
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)
__________________
"For the time being no discipline brings joy, but seems grievous and painful; but afterwards it yields a peaceable fruit of righteousness to those who have been trained by it." ~
Hebrews 12:11
ER'd in June 2015 at age 52. Initial WR 3%. 50/40/10 (Equity/Bond/Short Term) AA.
|
|
|
|
|
05-03-2012, 03:26 PM
|
#6
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
|
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.
|
|
|
|
|
05-03-2012, 03:29 PM
|
#7
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
|
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.
__________________
May we live in peace and harmony and be free from all human sufferings.
|
|
|
|
|
05-03-2012, 03:48 PM
|
#8
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2009
Posts: 6,698
|
Quote:
Originally Posted by aaronc879
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.
|
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. 
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
|
|
|
|
|
05-03-2012, 05:26 PM
|
#9
|
|
Recycles dryer sheets
Join Date: Mar 2008
Posts: 410
|
Quote:
Originally Posted by aaronc879
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.
|
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.
__________________
ACC USN-(Ret)
|
|
|
|
|
05-03-2012, 05:27 PM
|
#10
|
|
gone traveling
Join Date: Sep 2011
Location: Placerville
Posts: 161
|
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.
|
|
|
|
|
05-03-2012, 05:30 PM
|
#11
|
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,501
|
Quote:
Originally Posted by Spanky
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.
|
+1 Nice observation. Some people just can't get enough money to stop that craving and discontentment.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
|
|
05-03-2012, 05:37 PM
|
#12
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,305
|
Quote:
Originally Posted by Spanky
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.
|
+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.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
|
|
05-03-2012, 05:42 PM
|
#13
|
|
Recycles dryer sheets
Join Date: Mar 2008
Posts: 410
|
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.
__________________
ACC USN-(Ret)
|
|
|
|
|
05-03-2012, 05:56 PM
|
#14
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
|
Quote:
Originally Posted by BLS53
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 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.
|
|
|
|
|
05-03-2012, 06:20 PM
|
#15
|
|
Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,342
|
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.
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
|
|
|
|
|
05-03-2012, 06:35 PM
|
#16
|
|
Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,688
|
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).
__________________
Budgeting is a skill practised by people who are bad at politics.
|
|
|
|
|
05-03-2012, 07:06 PM
|
#17
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
|
Quote:
Originally Posted by traineeinvestor
IIRC some of the studies concluded that people feel happier about their wealth when they have more than their neighbours/relatives/peers etc.
|
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.
|
|
|
|
|
05-03-2012, 08:34 PM
|
#18
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
|
Quote:
Originally Posted by Spanky
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.
|
+3
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
|
|
|
|
Happy doesn't preclude clueless
|
05-04-2012, 06:46 AM
|
#19
|
|
Thinks s/he gets paid by the post
Join Date: Oct 2011
Location: Philadelphia
Posts: 1,412
|
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.
|
|
|
|
|
05-04-2012, 07:33 AM
|
#20
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,305
|
Quote:
|
IIRC some of the studies concluded that people feel happier about their wealth when they have more than their neighbours/relatives/peers etc.
|
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).
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
