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a study that showed limited returns on happiness beyond a certain threshold ($75k at the time, which is now surely well out-of-date).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.
for most rich people those aren’t goals. the are forgone assumptions.
rich people care about going to elite expensive institutions, working for elite companies, and having designer level lifestyle in clothes, housing, and consumer goods. they love to go on about how they value ‘experiences’ while they drop 30K on some week long spiritual retreat in Bali, or some $10K weekend spa weekend in Palm springs.
the 100K people who feel poor feel poor because they thought they could afford a designer lifestyle. and all they are getting is a basic middle-class lifestyle
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.
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a study that showed limited returns on happiness beyond a certain threshold ($75k at the time, which is now surely well out-of-date).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 mean that really isn’t the issue. If they actually do that they are doing exactly what trickle down economics says.
The issue is that in reality people don’t so that - they save a lot of that extra cash for a cushy retirement, and then work less.
Honestly, I suspect limited returns come as you fill in a checklist.
Are you and your family clothed, fed and relatively safe?
Are you working only one job per person?
Is your family healthy and/or getting adequate healthcare?
Is your family at least getting an entire high school education under their belt?
Do you have safe and marginally convenient transportation?
Do you at least have enough money for occasional entertainment outside the house
Do you have a second bathroom?
Do you have at least a small line of credit?
Do you have a retirement? Will you be able to retire?
You don’t need all that, but once you cross that line, having more money around for things doesn’t make you happier.
Having more money would let me retire earlier, which would make me happier.
But I’m lucky and already have all my other needs met.
for most rich people those aren’t goals. the are forgone assumptions.
rich people care about going to elite expensive institutions, working for elite companies, and having designer level lifestyle in clothes, housing, and consumer goods. they love to go on about how they value ‘experiences’ while they drop 30K on some week long spiritual retreat in Bali, or some $10K weekend spa weekend in Palm springs.
the 100K people who feel poor feel poor because they thought they could afford a designer lifestyle. and all they are getting is a basic middle-class lifestyle
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.