Happiness costs $75kpy

[ceecee]

The law of diminishing returns applies even to annual income.

It's true, think about it.

If you eat one cheeseburger, it is good.

Then you eat a second, and it is only half as satisfying as the first.

Finally when you try to eat a third you realize you never want a cheesburger again.

Right. When I met my husband he was making right around 73k/year. A few years later he was found by a recruiter an offered another job for around 115k. He wanted to stay with his company but they were freaking out at the thought of him leaving so they negotiated and that's what they offered him to stay plus a few extras and a better bonus. I can say we didn't become significantly happier with the raise although it's nice and we can save/invest more than we did with his lower salary.

 

[Giggly]

Yeah, that's the problem, how to take into account cost of living. Around here, 75'000 € - year would mean luxury car, a large villa, luxury vacations (supposing a 2-childern family, which is the standard). Moreover, is it gross or net? Because if it were gross, then it'd be like 37k - year of net income, which is standard for a 2-children family.

That's a huge difference. Is the difference in gross and net there just from income taxes alone?

 

[cafe]

I make less than 1/7 that amount and I'm happy.

The idea of a monetary value being attached to happiness makes me sick, even if it's some sociology study. I don't buy it.

It can make you unhappy to be taken to court over medical bills. It can make you unhappy to have to scrimp on groceries in order to pay the utility bills. I can make you unhappy to not be able to buy your child decent quality shoes when they need them or to fix your car when it breaks, or to have a leaky roof or a broken washing machine. Trust me. It really can.

 

[You]

Finally, I can' underachieve.

 

[highlander]

It sounds about right to me. It's unfortunate to have to be a slave to the bi-weekly paycheck at all though. I wonder if people who don't need to work are happier, or if they're more bored because they don't need to strive.

 

[FDG]

That's a huge difference. Is the difference in gross and net there just from income taxes alone?

Eheh, not exactly from "income taxes" - 25% of your income (on average) goes to income taxes, another 25% to compulsory pension contribution. Which used to work in the past, yet now feels like a ripoff (because they changed the algorithm for computing pensions, thus basically half of that money will be lost).

 

[Giggly]

It sounds about right to me. It's unfortunate to have to be a slave to the bi-weekly paycheck at all though. I wonder if people who don't need to work are happier, or if they're more bored because they don't need to strive.

I think so. This gives me an idea for another thread. I'll post it as soon as I can figure out what section it's supposed to be post it in.

Eheh, not exactly from "income taxes" - 25% of your income (on average) goes to income taxes, another 25% to compulsory pension contribution. Which used to work in the past, yet now feels like a ripoff (because they changed the algorithm for computing pensions, thus basically half of that money will be lost).

I've heard that in Sweden 60% of a persons gross income goes to taxes. I think the most we have here is about 40% and that is only for the wealthy.

 

[The_Liquid_Laser]

I've heard that in Sweden 60% of a persons gross income goes to taxes. I think the most we have here is about 40% and that is only for the wealthy.

Be careful of the statistics you hear. Just because 60% of Swedish income goes to taxes that does not necessarily mean it goes to income taxes. Likewise in the states even the middle class lose about 50% of income to taxes. Even if income taxes are low there are sales taxes, property, FICA and all sorts of other taxes. On many taxes (such as FICA) the wealthy pay a lower percentage than everyone else.

 

[ItsAGuy]

Taxes don't bother me so much; if I paid 50-60% in taxes, but education, health, fire, police, road, etc were all FREE to me whenever I needed, then I'd consider it a good deal.

 

[Chunes]

It sounds about right to me. It's unfortunate to have to be a slave to the bi-weekly paycheck at all though. I wonder if people who don't need to work are happier, or if they're more bored because they don't need to strive.

This blows me away. You honestly think it's a comparison.

You have confirmed my suspicion that productivism is the J ideal, and also that people can only be motivated extrinsically is a J thing.

 

[FDG]

I've heard that in Sweden 60% of a persons gross income goes to taxes. I think the most we have here is about 40% and that is only for the wealthy.

Yeah, actually here people don't even talk about gross income when discussing / contracting their paycheck, it's mostly about net monthly salary. Income taxes are around 33 % for most people (43 is the maximum percentage), but I think there is no compulsory pension payment in the US?

 

[Thalassa]

If I had 75K a year, I'd probably think I was god.

 

[Thalassa]

I'd imagine you'd have to adjust this amount depending on the cost of living for your city. Perhaps $75,000 is something of a national average?

That can't be the national average. It's definitely lower than that.

How sheltered are you people?

 

[ExAstrisSpes]

That can't be the national average. It's definitely lower than that.

How sheltered are you people?

I think the national average is around 30-40K. Sadly, I can't imagine making it off of that little. Then again, I live in L.A. It's just expensive here.

 

[The_Liquid_Laser]

That can't be the national average. It's definitely lower than that.

How sheltered are you people?

I don't mean national average for income. I mean national average within the context of the article. At a certain point making more money won't make people any happier, but that dollar amount varies based on your cost of living.

 

[A window to the soul]

Rediculous really.

 

[OrangeAppled]

I was content with my material status when I earned about half of that - and half of that in SoCal is not considered much. I think $50k would be an ideal mark for me, when it comes to things money can buy and what I would reasonably like to have/do. Honestly, I am broke now and happier in a lot of ways.

 

[INFtha14]

Found a similar topic somewhere online about how needing to make 50,000 a year to be happy *insert eye roll*.

I liked the response below from one of the people, something about living off 500 a month/lives in apt and their children live right across the street so he sees them frequently. He mentioned how he's got all that he needs. Then says "50,000" in order to be happy riiiight...

Exactly my thoughts. I can't remember where precisely I read it but yeah thought it related to the topic.