I thought that there was a study that showed limited returns on happiness beyond a certain threshold ($75k at the time, which is now surely well out-of-date).
Those could both be true. People feel like they need $125k more to be secure, but when they get it, it doesn’t make them as happy as they thought it would. They need another $25k more to feel that way.
the issue is they get that extra $125K. And then the start spending 95% of it on shit they weren’t buying before. They don’t get the extra 125K and not spend it.
It’s called lifestyle creep.
The ‘poorest’ people I’ve ever met were often part of the 300K+ club. Most of my friends making 100K or under aren’t the ones whining about how poor they are. It’s the people who are buying designer clothes and luxury cars.
so many people I meet are making like 100-150K a year. but they are spending way about their means on luxuries they don’t need but feel are ‘necessary’. like dropping $500 each weekend going out, which is $2000 a the end of the month. gym memberships, travel, luxury apartments, designer clothes, etc.
I think that the idea was that there is a special point where you feel secure and nothing beyond that makes any difference. But that $75k number sounds familiar. It’s probably more like $120k today.
Bingo. People typically spend more and more as they make more… making themselves financially insecure in perpetuity.
When I was making 30K a year I was spending only about 20K in expenses. Now that I make 150K a year I’m spending more like 120K. According to most of my peers I am ‘struggling’ because I’m not driving a brand new BMW 5 series and living a 2 million dollar house. So much of people’s fiancially problems is just them overspending to impress other people. I drive a 10 year old Honda. It works great. I also chose to get rescue animals rather than designer purebred animals. I shop at a cheap grocery store, not the luxury ones. and I live in a ‘boring’ area where rents/mortgages are cheaper.
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I thought that there was a study that showed limited returns on happiness beyond a certain threshold ($75k at the time, which is now surely well out-of-date).
Those could both be true. People feel like they need $125k more to be secure, but when they get it, it doesn’t make them as happy as they thought it would. They need another $25k more to feel that way.
the issue is they get that extra $125K. And then the start spending 95% of it on shit they weren’t buying before. They don’t get the extra 125K and not spend it.
It’s called lifestyle creep.
The ‘poorest’ people I’ve ever met were often part of the 300K+ club. Most of my friends making 100K or under aren’t the ones whining about how poor they are. It’s the people who are buying designer clothes and luxury cars.
so many people I meet are making like 100-150K a year. but they are spending way about their means on luxuries they don’t need but feel are ‘necessary’. like dropping $500 each weekend going out, which is $2000 a the end of the month. gym memberships, travel, luxury apartments, designer clothes, etc.
I think 75k was where commute time started mattering more than income
I think that the idea was that there is a special point where you feel secure and nothing beyond that makes any difference. But that $75k number sounds familiar. It’s probably more like $120k today.
Found it- from 2010. Today that is $111,333 if you believe the bls CPI.
https://time.com/archive/6597645/do-we-need-75000-a-year-to-be-happy/
Bingo. People typically spend more and more as they make more… making themselves financially insecure in perpetuity.
When I was making 30K a year I was spending only about 20K in expenses. Now that I make 150K a year I’m spending more like 120K. According to most of my peers I am ‘struggling’ because I’m not driving a brand new BMW 5 series and living a 2 million dollar house. So much of people’s fiancially problems is just them overspending to impress other people. I drive a 10 year old Honda. It works great. I also chose to get rescue animals rather than designer purebred animals. I shop at a cheap grocery store, not the luxury ones. and I live in a ‘boring’ area where rents/mortgages are cheaper.
it’s almost as if security is never actually produced by hoarding more and more resources for your personal nuclear family. Odd.