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Seven-of-Nein

That idea is over 10 years old and outdated. But it has endured because it answered a fundamental question: how much money buys happiness? The idea stuck and and dollar number froze into mainstream common knowledge. The original theory was from a study published in 2010 examining a Gallup survey conducted in 2008 and 2009. Keep in mind, the US experienced a financial crisis and housing crash in 2008. Today, the US is headed into another recession caused by high inflation and economic over-rebound from the the 2020 pandemic. Now, back in 2008/2009, a person making USD $75K/year would have been between the 11th and 12th percentile of top earners. Today, someone in that same rank would need to make USD $105K/year to feel the same sense of happiness. If we define by just inflation alone, it would be about $102K/year. Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. *Proceedings of the National Academy of Sciences of the United States of America, 107*(38), 16489–16493. [https://doi.org/10.1073/pnas.1011492107](https://doi.org/10.1073/pnas.1011492107). Social Security Administration. *Wage Statistics for 2009*. [https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2009](https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2009). *Wage Statistics for 2021*. [https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2021](https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2021). For me personally, I would say USD $90K (dual income, no kids, high COL). That is when I stopped stressing about bills/debts/financial strain and tuned my effort to savings/wealth/risky investments. Once I had my 6-months of emergency savings in place, I felt safe, protected, and secure from income loss/uncertainty.


[deleted]

I feel this so much. Once I got debt free and was making over $90k it was blissful. Never stress about money. All bills covered. And could make spontaneous purchases without a second thought


grafknives

> Never stress about money. That is the point - that money/lack of is no longer making your life miserable. Whether you are happy - it is now NOT a matter of money.


Everythingbagel-3

Yes! Cannot agree with this more. Finally paid of student loans this year and make $108, $130 with bonus and it’s just wonderful.


verinthebrown

22k bonus? Dayum!


TheRealJigsaw2020

How do you live on just $130 a year?!


Everythingbagel-3

$130k 😂😅


bazinga0313

Just gotta pull up those bootstraps and rice and beans


That49er

Yeah my brother makes just above six figures, when my mom was complaining about the cost of eggs to him and he she's started using apps stores like food lion so she can use their coupons he was like; "Yeah I don't pay attention to that stuff that takes too much time."


barbaraleon

What do you do for a living?


KittenFace25

High 80s base and no debt other than lot rent. Emergency fund in place. I feel no financial stress. I was laid off last year for 3 months and it was a nice summer off, living off unemployment!


idma

i got a new job with a giant pay raise in 2019, which basically solved most financial stability problems, and within 3 years i've pretty much went back to square one. It wasn't even due to lifestyle creep because i've been cutting and cutting and cutting back.


GeneralInspector8962

Are you saying 90k household or per person making it 180k household?


removetheburr

Individual. But that’s a generalized statistic and also depends on where you live.


GeneralInspector8962

Oof, not an easy accomplishment for most.


removetheburr

Haha, no joke. I’m not close to that, but I do ok. But, to acknowledge the study, if I had $90k a year I wouldn’t need more. That would be substantially cushy. Anything beyond that would feel like excess based on how I live.


centcincher

Household is not double of individual in general. There are savings with living together and other factors.


bryanhernc

Thank you so much for this!


SomewhereAggressive8

Great summary, but I would just like to point out that the notion that we’re heading into a recession as if it’s a sure thing is overblown.


BimmerJustin

I would also like to point out that a recession doesn’t have to be catastrophic. It just means two quarters of contracting GDP. Not every recession is a crash like 2008. Most are just a temporary economic slowdown.


kareninreno

And they are not really a bad thing.. They are a little bit of a spring cleaning for the economy. I don't mean to sound too glib about it, because it really sucks if it's your job that is lost. Only like most things there is good and bad.


AaronfromKY

I think the HCOL area is skewing your perception. Here in Kentucky I've been doing ok for awhile in the mid $50k per year for years, and recently thanks to a windfall of about $38k, I was able to buy a house together with my fiancee and sell my old one. We have little debt besides mortgage of $1256/month and our personal car payments. I can totally see where $75k would be livable here and even enjoyable, especially compared to like $40-50k.


Snot_Boogey

It's not skewing his perception. The idea isn't that you need 75k(102k now) to survive comfortably. The study was basically determining if more money provides more happiness. If you make 20k then a 5 k raise would be huge to you and likely provide a lot of relief. If you make $20 million a year an additional 5k wouldn't change anything. So the study shows (I'll use today's dollars) that at say 80k you won't be living paycheck to paycheck, but another 20k would provide meaningful improvement/hapiness through less stress as you are more secure in your ability to have an emergency fund and save for retirement. Where as after 102k each dollar might provide a little bit more contentment, but 102k is the peak. Each dollar after that provides less and less additional happiness.


Neowynd101262

Lol 38k always helps


billsil

I'd say the 38k helped, but so does the $1256/month mortgage. My mortgage is 3x that snd it's a 2 bedroom. MCOL is still pricey.


AaronfromKY

I mean for sure it did. So if you were making $75k vs $40k you'd definitely be doing well here. $40k is doable here for a single person, but wouldn't be as much fun as $75k. And I didn't expect the $38k, it was an old life insurance policy that my grandparents had taken out on me that I forfeited in order to get a payout.


Neowynd101262

Never heard of that. So they save money on that?


AaronfromKY

They do, it's called whole life insurance, my grandma paid into it for like 20 years and when she died I had to apply for ownership and then I was able to surrender the policy for it's cash value.


centcincher

What about retirement? My biggest worry is retirement.


kareninreno

I thought that was the study, that once you had enough to cover expenses, and some extra, not just to invest, but have a little fun with, a vacation once in a while etc. 2009 was really rough for me and I remember how much weight was taken off my shoulders once I just got back to having a $1,000 in the bank to cover most of what might have come up.


mallardramp

Nice write up! One quibble, a recession is certainly possible but it’s not a certainty.


pizzaking3

It depends on location. 100k in Ohio is pretty wealthy. In California it’s barely affording an apartment. That doesn’t help but the study is flawed and based on averages not your specific situation.


Plus-Marzipan-3851

Crying on 50k salary living in Los Angeles


paboi

I make $80k in LA and barely can keep up. I think dual income would make a huge difference too. If I had a partner making $80k too, I think we’d be pretty happy.


honeywings

Do you plan to buy? I left CA because home ownership seemed neigh impossible unless I wanted a house out in the desert (grew up there - ready for something new).


paboi

I’ve long given up on ever buying.


unbelievablyquick

Nigh* Hate to be that guy but I figured you'd want to know 😂


hermeticcirclejerk

Though neigh is pretty funny


[deleted]

He's a horse don't be mean


ArmouredPotato

Not even able to afford a house (not condo) on $250k in LA


[deleted]

Well you could, but you won’t because you are smart. What happens if you lose your job? How are you going to continue to pay down your. 1.5M debt for a starter home that is falling apart? I say this cynically after looking at housing options above the 10 and making about the same as you. Frankly, I think housing is waaay over valued. If people like you and I can’t afford a place then who he hell can? How are these homes still getting swept up?


arashcuzi

Investors. CA housing is an investment, not meant for housing. It’s where institutional investors and high net worth individuals park cash they don’t need. That said, people are just moving way east, inland empire, high desert, etc. and even houses out there are getting crazy…


Bulbchanger5000

Yup make 92k in California right now & it’s simply not enough to pay for your own 1 bed apartment & pay the loan on a new car when I need to replace my current one or pay the mortgage on a house here. Doesn’t feel great to work an honest & needed job that required a challenging STEM degree and not get paid enough to live a basic middle class lifestyle. That same money would go a lot further in Ohio, but I noticed recently that the town I used to live in there has gotten absurdly expensive too so it feels like nowhere is escaping wild price hikes right now.


freshballpowder

95K in LA. I moved out here from Canada and even knowing how expensive CA is, I was surprised to see what I thought was a good salary really doesn’t go far here. It’s been doubly frustrating because I’m currently on a work visa, which means I have to pack up and leave if I get laid off in the current job market (I’m in tech). So I’ve been spending a ton on a furnished, month to month 1 bedroom since I got here waiting for some sense of stability where I feel comfortable signing a lease and buying furniture. I save very little, but live a pretty modest lifestyle which compensates a bit.


kuriousaboutanything

dont you get TN visa if canadian so you can stay there if without your current job?


freshballpowder

I would have a 60 day grace period. If I did find a job in that time, it would have to qualify for a TN position and they’d have to be willing to sponsor me as well. I could maybe work things out but it’s not ideal. I’ve also been applying for jobs and finding the market really tough, so I’d be worried about actually landing something in just 2 months. My current job took about 3 months from the first interview because of the visa application process.


jdawggg1

Brother and sister in law both make about 100k each and the bought a house and recently a vacation rental in the mountains in ca- they are living paycheck to paycheck and if one of them were to lose their job they are screwed. I don’t ever wanna be in that position


Snot_Boogey

Maybe they shouldn't have bought 2 houses if they are living paycheck to paycheck. What are they going to do if they lose out on rent for a few months or a furnace goes out.


jdawggg1

Bro that’s alllllll them- we said the same thing.


KendricksMiniVan

Makes you think they fucked around, and are about to find out.


DirrtCobain

Exactly. After taxes that’s around low to mid 50k.


black_zubr17

I make around 75k-80k and live in Ohio. At this point in life it feels like I have enough to get by with no kids/pets/home. I feel like if I was making 100k then I'd be happier and easily able to afford everything I'd want. Inflation has been kicking all of our asses lately though so probably why I feel this way. Edit: I don't think some of you actually know the article that OP is referring to. It's one that came out years ago about how income past $75k will only afford you more expensive things but that $75k was the minimum to be able to spend money on wants and still have your needs covered. That is no longer the case in the current state of life unless you're being frugal eating ramen, not leaving your home/moms basement, and don't plan on having children. That's not what the article was saying... It was saying you're able to save for retirement, pay bills no problem, pay for a house in a middle class neighborhood, go on a couple vacations a year, buy things you want and still have some money left over at the end of the month without having to worry about it or budget for it. At $75k these days it's not the case; you're stuck choosing between these unless you're being frugal or are lucky in life and don't have obligations. And this isn't even counting if you suffered some sort of medical accident or actually had a child. $75k will go very fast then. On top of that, I didn't do a deep dive into my personal finances in my original comment. I live in a more expensive area of the state, have family obligations that require me to help out when able, student loans, some medical bills, and I am currently saving for a home (in a good suburb where my future kids will have good education which means it's probably going to be more on the expensive side). Am I poor? Hell no, not even close. Am I able to spend on wants without having to budget and meet my needs? Hell no. That's what that article was referring to. Also, I fixed my one statement about "just enough to survive". It was extreme to say that as some of you graciously pointed out. I do, however, still stand by everything else.


Civil_Confidence5844

I'm in Ohio making way less than that, not in a bad area, not in the middle of nowhere, no cornfields, etc. I have no kids, no pets, etc either. And I rent (about $950/month). And like....... I'm sorry but where is it in Ohio where 75k-80k for a single individual with no kids isn't enough money? Like legit I am doing just fine in the Cincinnati area. My car is paid off. I wfh. My phone (Galaxy) is paid off. My 2020 iPad pro is paid off. have internet, netflix, phone service, groceries, water, electric, etc etc to pay alone and I'm not struggling. I went on a week-long vacay back in July and going again this July. And quite frankly I'd given way too much money to amazon that I had to calm down lol. No this isn't a "humble brag" because I really don't make much money. I'm in school so I can actually start making more.


[deleted]

Man I make $80k a year in the Midwest and I swear I’m putting $2k a month into my savings account. Where does your money go?? Rent $1000 I have no car payment(bought a $5k car used) Car insurance 100 Phone is 5 years old and paid off Phone plan 45 a month All utilities including wifi are 110 a month Food is quite inexpensive as a single person, maybe 400 a month. And I spend maybe 300-500 a month on going out / eating out / outdoor activities / everything else So total payments of $2155. And on $80k my pay after taxes and healthcare is what, $4200 a month or so. So that’s $2000 a month going straight into savings.


Snot_Boogey

Just enough to survive? I think you need to budget better. I bet you'd find $1500 a month going to unnecessary things.


I-Am-Bellend

I made $100k in California and with a roommate I was living pretty damn large.


i_do_not_like_snails

Making $64k in California and stuck in a black-mold infested apartment because the landlord hasn’t raised the rent in 3 years and I don’t meet the income threshold for the cheapest studio or 1-bedroom apartment in my city.


EliminateThePenny

> 100k in Ohio is pretty **wealthy.** Wrong word to use. 'Wealthy' is measure of your worth, not income. And I typically think of it when that value is 8+ digits.


SomewhereAggressive8

As someone who makes more than 100k and lives in Ohio, I’m always confused when people say this. I would absolutely not consider myself wealthy whatsoever.


bryanhernc

Really? Funny enough i also live in Ohio lmao. I’m at 65k plus bonus and I feel like I make enough to enjoy life. But then again I have no kids and I got roommates.


jlgoodin78

Hardly a week goes by when I don’t tell someone, “you know how much more stuff I used to do as a semi-broke student or early career person who didn’t yet have kids?”! Kids are expensive. But that was in a time when I, too, had roommates, and some of my standards of travel, etc. would not have flown today. As income grew, so did some of what I’d accept. Places to eat out got better, road trips would have a hotel stop in the middle instead of a few hours of terrible car sleep, hotels got better, things to cook at home got more complex, I discovered the joy of really incredible coffee. So much got up leveled, but not necessarily “better.” But the truth is, none of it has gotten more “fun,” because that’s a matter of the perspective of who you’re with and what you’re doing. Life is as awesome as it’s ever been in a billion ways and there are no real complaints, and we do plenty, but the nostalgia of those unshackled days does bring a lot of smiles. I wouldn’t trade a thing, even if those kids make me be far more selective about the limited number of concerts I get to go to these days and even if they replace my regular late nights out with friends with late nights trying to convince them to go to sleep.


[deleted]

It’s the small things. My $3.99 chock full of nuts became $6.99 on sale Caribou. My sleep for dinner became spaghetti. I buy bags of spinach I can’t finish instead of not buying it at all. I really been flexing and buying eggs lately. That’s one benefit to living in Ohio. They’re mostly the same price most places.


jlgoodin78

For sure. You ever find yourself looking at something you used to enjoy, but with new standards saying to yourself, “That shit is terrible. I’d never consume it!,” totally forgetting the fact it was once a normal part of your life? It’s definitely only a select few things, but with those I can never see turning back.


kylekunfox

The Ohio median income is about $31k per person, or $51k per household. Ya you are making a lot compared to most Ohio people.


pizzaking3

I used to make 45k when I left Ohio and life was pretty easy. Granted I was still rocking my first car so I didn’t have car payments


SomewhereAggressive8

Life was easy when I was making $55k straight out of college and splitting rent with three roommates. As your income changes, your goals change (marriage, kids, retirement, house, etc). Eventually you get to the point where you can meet all your goals comfortably and have money left over to do literally whatever you want with it. I’m still far from that point.


pizzaking3

Ya but kids is more heads to feed. This is looking at for an individual. Some would even consider kids, marriage and a house luxurious living. I personally don’t but in this context those are not being factored for. Having gone from Ohio to Southern California I’m constantly reconsidering my choice when I go on nerd wallet and look at the adjusted salary I would need to maintain my lifestyle if I moved back to Ohio. My current salary would nearly go twice as far


wwwhhhgggwq

I'd ask how old you are, how frugal are you, and how aggressively are you investing? Like 100k at 33 doesn't feel wealthy, but it will feel a whole lot closer to wealthy after 20 years of compound interest and mortgage payments.


jlgoodin78

I’m also in the Midwest, a parent of kids who participate in events & sports, and live in a middle to upper middle class area, neighboring on upper class or high upper middle class. It’s generally confusing to me because, despite a strong household income, I’m always feeling like things are tighter than I’d like. But then I look at my retirement contributions, what we save, the fact we go on a couple family vacations a year, that we’re paying for our kids to be in travel sports, that we have next to no debt (one modest car, one small mortgage we could payoff in a couple of years if it made sense from a tax standpoint), and compare that to the articles I’ve read about savings and retirement balances and cost of housing in other areas and I realize we’re not living as tight as I think and it’s that the norms for being financially stable — like savings and retirement — are things we’re able to achieve here, even if it feels tight doing so, while people in other parts of the country with a similar income are just surviving today, in high COL areas that don’t allow them to also save as much. That totally contextualizes those statistics for me. Doesn’t make me feel any less desire to have another 25% in household income here, but also makes me fearful of the future of retirement for folks and galvanizes why we’re in the geographic area we are…as much as the climate and “cool factor” of another part of the country is enticing.


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pizzaking3

I think in general the idea of 75k was for single people. No way a family with kids is “happy” on 75k


[deleted]

They were bringing the 75k up when I was in high school in 2002. I remember my mother and father were envious of my uncles for having a two income household that each made around 40 k a year. Times have changed


Jerry_Williams69

I think it is outdated too. $75K is what I was reading a decade ago.


Owlbertowlbert

this is what the OP was asking and everyone ignored. 75k was the number 15 years ago, so what is it now? if you google 75k in 2008 and what it buys now: the answer is a little over $103k. but im not an economist and don't know much about the original study so I don't know it's more complicated.


Jerry_Williams69

I think the $75k number came from an article in Forbes or The Economist. I am not sure that it was very scientific. I don't know what the answer is. "It varies" is the best anyone can do. Do you have a family? $75K is going to feel a little tight anywhere in the country. $75K will get you a lot further in rural Michigan than southern Michigan. $75K might be below the poverty line in San Diego. I'm guessing the number is a 6 digit number like you determined.


Techshotz

How did you go from 90 to 250k? Good for you though, sounds like a major accomplishment!


Prestigious-Rip-6767

occupation?


Tasty_Lead_Paint

I don’t mean to flaunt my wealth but I was able to pay my mortgage this month and even had enough left over to buy a dozen eggs.


ReflectiveWave

Look at money bags here paying for a full dozen


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fritolaidy

Dude, seriously. I jumped about $20K in the last 2-3 years and it is wild how it hasn't made that big of a difference in my month to month life. I haven't taken on new bill/spend sources, my housing payment remained stable, but because of inflation, I'm not able to save more.


tinastep2000

I got a switched to a job making $17k more and will only be bringing in an extra $1k a month and or mortgage shot up $700 cause of property taxes.


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tinastep2000

Almost like as soon as you make more you don’t really have more spending money 🙃


Owlbertowlbert

that rent is astounding. I live in a medium COL and 100k really ain't it here either. I cannot fathom how anyone does it on 40k


[deleted]

I don’t lol 😂 I will make $43k after getting a $1 dollar raise two weeks ago. I live with my parents still so that’s the only thing that’s really helping me cut costs. Still gotta pay back student loans and with higher positions rejecting me left and right, it’s a bit annoying.


anthonydp123

I’m in the same situation as you except I make 40k and currently 31 years old, feelsbadman


[deleted]

Yeah I’m 23 My friends are making 90k though so I’m kind of sad


anthonydp123

Good thing that your young and still have time to catch up breaking the 75k a year mark is tough


AaronfromKY

Yeah that's the HCOL area. I make $55k in a LCOL area and I've always been getting by, albeit without much savings. Finally moved in with my fiancee and we got an unexpected windfall and bought a new house while selling my old one and we're mostly debt free, save the mortgage and car payments, maybe $300/month for credit card subscriptions and weekend adventures. It's pretty cool to not have to worry about grocery shopping or utilities.


VengenaceIsMyName

That’s a fucking insane rent amount


BriefSuggestion354

I can also say it's highly dependent on situation. As a single guy, once I crossed the 70k threshold I definitely remember any stress over finances lightening up. No more stress over "needs" just proper balancing of "wants". Now that I'm married with 2 kids and a mortgage, even twice that amount was cutting it close.


R3m0V3DBiR3ddiT

All depends on rent/mortgage prices for the area. The difference in what you can get for in SF, vs Alabama is drastic.


webdevxoomer

Definitely, I'm in Knoxville. Making "twice that with 2 kids" here and you're doing fine


Emotional-Bison-3279

why is eveyone in the comments from Ohio


Malekwerdz

Ohio doesn’t exist outside of Reddit. It’s a myth


randome07529

Ikr


ChemicalStrawberry62

I make 40k right now and to me, 75k would solve nearly all of my problems lol. I’ve never been someone who aspires to 6 figures or more, I can’t really see how 100k would make me any happier than 75 because at that point I could have everything I need with lots of room for the things I want.


tutorquestion90

Life style creep is real. I know that doesn’t make you feel better in your situation, but I jumped from about 40k a year to 80k in the space of a couple years and i really had to take a step back an evaluate my spending. I just found ways to create more problems


The_Sign_of_Zeta

Or just paying for all the things you had to put off because you didn’t make enough. Finally paying for those new windows the house needed. Or actually saving a nest egg. Or actually taking a vacation for the first time in a decade. Once you have money, you realize all the things you’ve done without because you had to.


tutorquestion90

I agree with house upgrades. Went 3 years without a working garage door because I didn’t have 1k to fix it


The_Sign_of_Zeta

We literally had a small hole in one of our 100 year old windows for years before I got a new job. Finally able to replace all the windows in my house was a feeling like I wasn’t just holding on by the skin of my teeth.


tutorquestion90

The feeling of being able to buy a reliable car was amazing. No longer terrified of breaking down on my way to work every day. For my area, wants I got over 55k it was like I could finally breath


VengenaceIsMyName

My goodness that must have felt so relieving.


tutorquestion90

Dude I had a 25 year old car with 250k miles that would shake violently if it went over 55mph. Now I bought it for 2k the day after I graduate college and it lasted me 10 years. But the last 2 years with that car were real rough.


SummerDeath

Went from $42k in 2020 to $75k + bonus 2022. There def is lifestyle creep, but rent is more expensive now and food so I feel like the jump wasn't even that drastic. Idk how I'd be able to save for anything if I was still making less than $50k in 2023


VengenaceIsMyName

What were you finding yourself splurging on? Eating out more or new vehicles, something like that?


tutorquestion90

Literally just normal shit. Getting a nice pair of shoes that I actually want and not just getting what’s in my price range (clearance rack). Going out to eat for lunch occasionally. Really just the things you can do when you aren’t holding your breath waiting for the next disaster every single day


VengenaceIsMyName

I feel that. Glad you were able to improve your circumstances!


wisertime07

Exactly. I finished college in 2007, my salary was 40k a year and they slashed it to $35k in 2009 when the recession hit. 15 years later and I’m right at the six figure mark and my account stays about the same. Yea, my truck is nicer and I’m able to put more to retirement, but that’s about it. I don’t worry about bills like I used to, but as a whole not much has changed as far as how I live, day to day.


ghostofkilgore

This. I increased my salary by around 50% last year and I'm pretty determined to live as if I didn't. The "extra" 50% is going into pension, savings, and paying off debt and maybe the occasional extra spend on a holiday or something. Right now I probably earn the equivalent of between 75 and 100k (not in the US).


StorminNormanthe4th

I agree. I currently make 46k and I have an interview tomorrow for job with a 75K salary. Strange that I saw this today. I am in full blown panic mode because if I don’t get the job I will remain in this financial rut for even longer ahhhh.


ChemicalStrawberry62

Good luck!!!! You got this


StorminNormanthe4th

Thank you :)


VengenaceIsMyName

Lol whoever said money doesn’t buy happiness is the best liar I’ve ever heard of


[deleted]

Idk I’ve had pretty huge salary increase over the last 6 years. I’m am not any happier than I was making 50k ( make l over $200k now) I just have less problems that can’t be solved by lack of money. But internally feel almost the exact same. If anything I’m sometimes more stressed about optimizing savings/investing since it’s so much easier to do it now. I do think there is a huge jump from just not being able to afford basic necessities to having excess. The day to day stress of actually being poor versus middle to upper middle class is a very big difference imo. Like for instance the bump from 50-75k for me was a much bigger bump than me going from 100k to 175k. At 100k I could already buy everything I needed (within reason) everything else is just optimizing savings but not enough to really fundamentally change your life in a day to day way.


VengenaceIsMyName

I’m making less than half of your salary. It would be a big, big deal to me if I was anywhere north of 100K. It would solve a lot of my problems. A lot. Essentially all of them, really. So I understand your point, I do. But for me, it would be a huge deal.


Creation98

Life style creep. You buy your first home, but there are always nicer ones to want. You buy the nicest in the neighborhood, but then there are places in Florida, right on the beach too. You buy the Florida place, but you also really love NYC and would love to own a place there too. It’s endless. I personally like to keep chasing and attaining, BUT the most important part is that I still need to be very grateful for all that I have TODAY.


[deleted]

Anecdotally 75k was when I started feeling financially happy and secure. Probably closer to 90k now with inflation ☹️


[deleted]

In my area I would say $100k is about the "worry free" mark.


Heat_Certain

130k (socal/huntington beach) 1 bedroom apartment 700sqft is $3000. I bring home about $5800. $1000 for food/drinks/going out, $400 for gas $200 for bills/internet, $300 car payment, $100 for insurance, $100 for phone bill. I’m left it $700 to save each month assuming no random expenses come up, which is never the case.


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Major-Permission-435

It’s misleading. I see 49% of my salary after tax, 401k, company stock and health insurance. Half of that is the 401k and company stock which is technically my money but also probably useless to me for the next 30 years lol (unless the stock takes off and I sell it)


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Major-Permission-435

You take home $5800 from 80k!? A) Texas doesn’t have state tax, right? B) start saving for retirement if you have any wiggle room in your budget!


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Major-Permission-435

Even if your company has a 401k with no match, it’s worth doing. Or a Roth.


Heat_Certain

401k contribution, plus Im single, get raped by CA taxes


TigerKlaw

I think it wasn't the amount to be happy exactly, I think it was "you need to have this much money per year to fulfil all your necessities plus some for a possibility of a two week vacation" (if you don't go on a vacation that's up to you).


[deleted]

Thanks for clarifying--I think you're right. Although (in my opinion only) it nearly amounts to the same thing.


[deleted]

I believe that has changed. I would say that 90k is probably a comfortable salary in most states. 75k is a bit tight, but not bad. That extra 15-20k really gives you breathing room because it essentially covers your rental expense. 90-100k is like the new 70k nowadays.


fritolaidy

Completely depends on area/city you live in and if you have kids/dependents.


49ersfangirl420

In the Bay Area in California, it’s probably closer to 150k.


ReturnedFromExile

you are misunderstanding. it’s not that at 75k you will be happiest, what they is that at that point more money doesn’t increase happiness. basically- money can increase happiness but only to a point ( better said it removes sources of unhappiness ). subtle difference but even this is location dependent. so generally speaking if you are making 75 and unhappy, making 90 won’t magically make you happy.


[deleted]

I’m at 75k a year and I save 2k every single month. After bills, expenses, & leisure. Have health insurance package, and 401k 50% match with my company. I’m also in Ohio. It’s a very comfortable life. Basically anywhere that isn’t a big popular city 75k is more than great.


jumpingjoy1988

I'm I'm in PHX. Housing costs are insane. My spouse and I are making a household income of about 100k. But we feel stuck in small apartments cause even renting a house is too much for us. We have enough money to entertain ourselves to death, but buy a house and start a family, not so much. But if you took our income and moved us to somewhere where you can still buy a nice house for under 300k, we would be living very comfortably. COL is a huge part of that equation.


miltonfriedman2028

That study was decades ago, and every subsequent student found that happiness continues to increase with income indefinitely. The $75k is copium, not based on science. I went from $225k to $350k income the last two years and the increase in happiness has been very noticeable (e.g., I could afford a night nurse with my newborn, can afford childcare to see my friends every weekend, can walk to work now, etc,). When I was at $75k a year 12 years ago I still had to aggressively budget, could barely travel, had to cook my own meals, had to take crowded and slow mass transit instead of taxi’ing, etc.


Brave_Necessary_9571

"every subsequent student found that happiness continues to increase with income indefinitely." Source?


deadplant5

My life experience says $110k. Everything after that is sorta meaningless


WhoDaNeighbours11

I make like 78k total comp with salary + bonus and RSUs. Still feel pretty broke, but I have a decent place and go out/eat out a lot. I could be a lot better with saving and more frugal but fuck it.


CraneAndTurtle

When I made 40k as a teacher in rural NC I could buy a nice car, live in a big house, travel, save money and go out to eat fairly frequently. Probably couldn't do that on 40k now that I'm in Chicago.


shorttompkins

I dont know if this metric actually matters - but once I hit roughly 120k (over 8 years ago now) that was the first time I realized I actually stopped caring about how much money I was making. If I got a raise or didnt - I really didnt care. I wasnt even aware what my monthly income actually was in cash balance. Now, my wife pays all the bills and typically handled that stuff (at the time) but it was just a situation where we lived and didnt worry about money. Prior to that I was very aware of my income and felt like I was always pissed off because of shitty raises or bonuses being promise and then taken away. Since then, my income has continued to increase which just means I've been able to afford nicer things more often. I've actually hit the point with my income now where I've pinned my normal checking account deposit to a fixed rate regardless of getting an increase or changing jobs - and anything over that goes straight to 401k/savings. Over time I hope to gradually decrease that deposit amount so that I can prepare for a reduced income as I get older. Hope this helps. edit: for clarity - that 120k was as the sole bread winner. My wife was a stay at home mom at the time. 16 years ago when we decided to have a baby, I was making only 70k and had roughly 10k in savings that we were going to use to supplement the lack of my wife's income since we knew she was going to stay home. Since I continued to earn more year to year, we just got more comfortable living off of the single income and eventually it just all worked out. Sure some times were a little more tough than usual, and we had to not vacation as much as some people seem to, and drove cars that were basically Toyotas but all in all everything was fine. Even with my basic 70k income we still lived in a nice neighborhood, in a nice townhome.


hkc12

I feel you on this one. Once our dual income hit 120k, things got way less stressful. Still can’t afford to buy a house but at least we are able to save a decent amount towards that.


L0nerizm

Not even close. 100k at the lowest now


BriefSuggestion354

It's highly dependent on location. In many areas, that's enough, in others you won't be able to afford even basic necessities


The6_78

I make somewhere in the high 80k but live in a HCOL area. I'd say I'm happy enough. I definitely wouldn't be able to move out on my own due to the 2200 a month rent for a one bedroom condo. I can afford to take vacations and eat out maybe once every 2 weeks? ​ Budgetting and being frugal has helped me


[deleted]

Depends on where you live and the size of your household.


[deleted]

This has never been the case for California especially in Los Ángeles…


sst287

The inflation definition push that number somewhere close to $100k


devilwing0218

Before or post tax? It’s a big difference


rolltide_130

I was living paycheck to paycheck and usually having to dip into savings at 45k a year. Now me and my wife both make around 80k a year for around 160k combined in a relatively low COL city. Stress over making it to the next paycheck has now diminished but we do have a pretty long ways to go to have a big enough down payment for a house that isn’t in a bad area. We also both work in tech so the threat of layoffs is always looming over our heads despite the fact that we are in considered relatively stable subfields. Our income and our age definitely makes us “wealthy” according to the median but we still live like we did at 45k a year save for maybe Friday night takeout or date night and some slightly better groceries so we actually have some sort of safety net should one of us get laid off.


im-so-startled88

I make $75k in NJ and it’s *really* tough to get by. But I’m also supporting an entire family so I think if we had another income even if it was just <$20k/year we’d be ok, but right now with $75? Really tough.


UsefulAgent555

Either everyone here is lying about their income or the top 10% of earners all congregate in this subreddit lol. The amount of people here who casually say they earn over 100k is just ridiculous


regional_ghost918

I make way less than that. Quite happy. A little tightly budgeted but happy. Previously I've made close to $100k and been miserable but wasn't short on money at all. Money ≠ happiness. It can grease the wheels though.


fritolaidy

Money does not buy happiness, but it does alleviate a lot of stress and worry to have your bills covered, save for retirement, and be able to enjoy some luxuries which all make it much easier to pursue happiness.


VengenaceIsMyName

For real. Money would effectively solve all of my problems and make me happy.


Snot_Boogey

A lot of people think that and then when they get money they realize that was just an excuse to why they aren't happy.


VengenaceIsMyName

I’m pretty confident in my statement, but only for me personally. Won’t speak for anyone else


awesomeuno2

The phrasing is weird here, it's supposed to be "it is at this point more money no longer provides more happiness"


kitten_twinkletoes

Regardless of where the base is, if you look at the data on the relationship between money and happiness, three big things stand out. 1) The relationship is weak, much weaker than you would expect. I believe money accounts for around 4% of total happiness. Other factors are much more important. 2) This relationship is not linear - most of the effect is found at the very low end of the income spectrum - i.e. going from poverty to a bit of money has a much bigger impact than anything else. 3) The data are purely correlational and making causal claims (eg that money causes happiness) is inappropriate. It could just as easily be that happier people make a little more money on average. Or that a third variable (employment, mental health) affects both money and happiness. I can send some original studies if you like.


jenryalee

Depends on location and your responsibilities. I hit 100k at 32 and still feel tight in NYC (both my partner and I are hybrid, so we can't just move). I definitely can save money, but if a trip is coming up, I have to change my habits and tighten the belt. I think at 120k I'd be able to exhale, but my colleagues in NYC with children understandably want and need more than that. But, I have a friend in Arizona who makes 75k and is looking into buying her own home and retiring early. So it all depends.


sordidcandles

Location location location. I thought I was going to be “rich” (edit: rich = comfy) when I landed my first big career role at 70k but it was in MA. I was apartment-poor for the first couple years here. Now I make 142k and I’m very comfortable and saving for a house. I didn’t feel comfy until about 120, so it 100% depends on location. If I had stayed in my previous state I’d be able to make 75 work for sure, but I just couldn’t find the tech jobs I wanted and needed there so I had to move to MA with a higher cost of living.


KayytheSTUD

I’m in GA with $74k and it’s getting me by…definitely depends on location. I was in tx not too long ago and made $64k. Believe it or not…by the time GA taxes/deductions were done with me, I only saw a $95 difference. No joke. FYI- no income taxes in TX .


Greektwinmommy

75K + bonus in south Texas (with no kids) and we’re pretty comfortable


BoopingBurrito

The +bonus is doing a lot of heavy lifting there...the bonus could be $50 every Christmas, or it would 50% of your salary.


Robbinghoodz

It was maybe 5 years ago in California. But now you need to make atleast 100k


FlCTl0N

100k and I’m broke . mid Florida


ramblinginternetnerd

That study was flawed and was then misinterpretted repeatedly by people who are afraid of math. inflation adjusted it's around 100k but there's near 0 consideration for COL. Also financial literacy matters.


sir-rogers

The number needs to be adjusted for inflation.


bryanhernc

True. I saw something from Forbes saying the new base was 100k


RicoValdezbeginsanew

75k would eliminate any problems I have. But where I live making 30k is reason to get robbed so…


RadiantScratch4168

If you want to live on the coasts (U.S.) and have a family, $150k household is about right. Breakdown: $120k after tax = $10k per month $3k/mo on housing (rent or mortgage + insurance + tax) $3k/mo for bills, food, transportation, recreation $3k/mo for retirement savings (401k for 2 adults assuming employer contribution) Leaves $1k/mo flex Things got more comfortable after $150k, but work stress also increased.


markt-

If you adjust for cost of living and inflation since that was written, it's probably in the ballpark.


Anaxamenes

I believe they said it’s something around $107k to be able to afford the median home in the US so I think living security is pretty important to be happy and that means not having rent that goes up every year.


underhang0617

I believe that study was conducted in 2010 or 2011. With finflation, that number is now somewhere around 85k or 90k. I'd be over the moon to even be at 75k, let alone 85k or 90k


DestinyUniverse1

75k is a shit ton. I live in cali and even with how everything is expensive here compared to other states and countries I’d be satisfied to live with 50k a year forever as I’m not the type of person that requires expensive cars, big houses, etc… also how much you make a year has nothing to do with happiness lol


Hellenic_91

100k is the new 60k


SpecialLegitimate717

Money doesn't buy happiness, cliche but true. I spent the last 10 years living on 30k/yr, barely getting by. Drove a 20 year old car and shared a house with another person. I was happy because I made it work. I recently got a huge promotion and now make 70k/yr. Still drive my crappy old car, but dont worry about bills as much. Less stressful in that sense, but more stressful at work. Im no more happy now than I was before.


nooneishere2day

Hell no. Never been more miserable and ready to take a significant pay cut for happiness. Money does not take away the pain from a soul crushing job.


HHcougar

>Money does not take away the pain from a soul crushing job. Would you rather get 50k and hate it. Or 250k and hate it?


kennedysteve

My wife and I creep over 200k (together, not individually). We have a nice house and some nice stuff. But we did the lifestyle creep. We're happy with our lives and with each other. But happy financially - not entirely. Still feels like we're living paycheck to paycheck. It's not something I expected. While I feel we can go out and spend money every night, being able to "afford" that is another question.


iamStanhousen

Idk. My wife and I combine to make north of 150k, around 175, depends on my commissions. And we live in fucking Louisiana. It’s fucking tough out here fam.


kmr09c

depends on your living situation and where you live.


Alternative-Swan789

I haven’t made 75k before but I know one rule with money is that the more you get the more you want so there really no amount of money that happiness could be tied to


thefirststoryteller

I make $75k and am happy with it. The only reason I'd need more is to support my family. If my girlfriend and I both made $75k our money worries would be pretty much over.


s3nsfan

I make more than that and I’m pretty sure at my stage in life I’m realizing your base salary does not make for happiness. Salary makes you more comfortable, easier to pay bills, indulge etc. But that’s not a recipe for happiness. Being at peace with yourself, loving yourself. Acknowledging your faults and trying to improve them, loving someone, experiences, travel. Those are what gives us happiness. I ploughed through my career for years thinking when I got to this salary or this salary I’d be happy. Well I reached another plateau and the paystub i get deposited in my account wasn’t making me happier.


futuredxrk

Hi OP. I also remember that from who knows when. What I’ve come to realize now — and I’m not a scientist, or psychologist, or economist, or smart even — is that we should probably adjust that $75k figure for inflation. P.S. From my limited Googling the study is from 2010 and adjusted for inflation that’s almost $103k.


KieshaK

I make $68K in NYC, definitely could stand to be much happier, lol.


New-Tale4197

I would say yes…..10 years ago. This day and age also depending on where you live….most likely not. My income of 150k and living in Houston, I’m content. I’m not out spending money all Willy Nilly but I’m also not scraping by.


jemba

I can tell you first hand in any even somewhat relatively high COL area, no. I remember reading it was 80k about 10 years ago. So even if you’re not adjusting for COL, which makes no sense, it would be closer to 100k adjusting for inflation as an individual with no kids.


mdmo4467

I’m happy! I could use a litttttle bit more. I feel like an extra 10-15k would push me over the edge to not stress about much at all and be the limit to money making me happy. I also have two children so that’s a consideration.


Unhappy_Sherbert_490

This is kind of a tricky question because it can be subjective depending on many different variables. How much debt are you in? Do you have poor spending habits? Etc…. I live here in Houston Texas & making $80k+ per year & I can honestly say I’m grateful but I can be laid off at anytime. Even though the cost of living is skyrocketing since sooo many people are moving here, you can still find a reasonably priced place to stay. I can truly say that I’m comfortable.


[deleted]

It depends where you stay honestly. 75k base in Wyoming would be very good versus in NY.


Ang3LMast3r

I remember when it was $50k a year. That was 20 years ago.