Interesting article in today's (28 Dec) WSJ, referencing a study that found that after $96k in todays dollars, more money does not "buy" more happiness. After $96k, it it's family, church, friends, interests, etc. https://www.wsj.com/articles/how-to-make-your-financial-life-happier-in-2022-11640399712
"Anyone who says money doesn't buy happiness doesn't know where to shop." -- Attributed to Gertrude Stein They say that's money Can't buy love in this world But it'll get you a half-pound of cocaine And a sixteen-year-old girl And a great big long limousine On a hot September night Now that may not be love but it is all right -- Randy Newman, "It's Money That I Love," 1979
I remember about 10 years ago, the number was $75k. That seemed like a far off dream I might never reach. Now that I'm finally within striking distance, they move the goalposts!!! Not to be overlooked - being frugal with one's money changes the ballgame entirely. Neither my wife nor I make anything near $96k, but we're still earning well over twice as much as we're spending. While we'd always like more money, we're living extremely comfortably with our modest apartment, used car and home cooked meals. For those who may have been following my tumultuous financial saga over the years, you'll know that this is FAR from where I was when I started, or even 3 years ago. I'm hoping, and working hard to make sure, that the winning streak continues. "Anybody who tells you money is the root of all evil doesn't f&$#ing have any." - Ben Affleck as Jimmy Young, Boiler Room
The magic number for income surely depends on where you live. My company moved our family from relatively expensive Northern Virginia to low cost Southern Illinois. It wasn’t just housing costs but nearly everything cost less, from after-school activities for kids to dentist’s visits. Sure, stuff from Amazon.com costs the same but enough other things cost so much less. It was remarkable. (We’ve since moved back.) This article [LINK] suggests there’s a state-by-state minimum income but I bet the urban/rural divide is more important than in which state you reside. Steve
A more useful index might be the percentage of income left over after essentials are taken care of by state (and as you note, rural or urban status.) In this case essentials goes beyond the basics of housing and food, and could include retirement savings, health insurance (for Americans) and other staples of middle-class living. A friend in DC pays $1700 a month for housing. Here in rural Iowa, $1700 covers my housing, utilities (electric, gas, water, internet, phone), car insurance and food for the month. He makes more than me, but my dollar goes a lot further than his does.
There’s always another level though… and it’s often all relative to your closest circle of family, friends, or peers…
Very true. My sisters from the military with pensions. My economic status is based on my having a ok-paying "job" (1 1/2 jobs) on top of that. My kids are constantly talking with their friends at school about how much "Dad's" make. I'm frequently reminding them that it's not "how much" but "how lucky" we are.
Much more. In keeping with your example, any economic comparison that would lump Northern Virginia in with the Southwestern part of the state is pretty useless.
The amount of money you need to be happy is $1 more than your brother in law. To be serious, I think that point is that there is a level where more money does not buy more happiness and it is lower than some might suggest.
While our traffic jams, high prices, and suburban sprawl will always be home for me, over the years I've found that each of Virginia's regions has its charms.