The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.
In our society today, there is always a wanting for more. You may live in a house that is perfectly fine for your current needs, but that house up the road that has 500 extra square feet with a pool in the back just looks so much better! Surely everyone would be happier with more amenities and more space, right? Well, not necessarily.
The Research Regarding Money
According to the research of Forbes magazine, the standard amount for happiness is around $75,000. Those that earn more than this really don’t gain much from their extra income. They still have a nice house, but maybe it’s just a little bigger. They might still own a boat, but it has a few extra feet on the front. And, they still receive (and can afford) a valuable education. Extra money beyond the $75,000 amount is merely spent on extras that truly don’t provide much more in the way of happiness.
Why Is It That We Always Think We Need More?
So for those of us that have read this Forbes article, we can buy the fact that happiness does not increase greatly after that $75,000 mark, but why then do all of us continually strive for more? Why are we all spending our precious time to acquire more and more money, which in turn buys us an increasing supply of stuff?
This is the question I have been asking myself lately, and I think that it’s an important question for all of us. Sure, it might be nice to earn more money than we have right now, but how much money do each of us really need to be happy? And how do we decide what this amount is for us?
The Quest for Understanding Your Happiness
It is easy to think that additional money would make you happy. Instead of going out to eat once a month, you could eat out every weekend. Surely, this would increase your happiness right? Or what about that new car that you have always wanted? If you were able to buy those new wheels, life sure would be sweet wouldn’t it? Then you would be happy! Honestly, I really doubt it. An increase in stuff will not make you happy, and the earlier you realize this the better.
If you are anything like me, when you talk to others, you are not talking about your recent money-making quest or about your big raise at work. No, you are talking about your wife, your kids, your experiences, and the fun things you have done in life. Relationships and experiences are what creates happiness, not money.
So how much does it cost to have these relationships and to create memories through experiences? Honestly, it doesn’t cost that much at all. I currently earn quite a lot of money (in comparison to the average family), but I only find myself spending about $25,000 a year. I travel, I give, and most importantly, I spend a large part of my time with those that I love. In the grand scheme of life, money does not play that large of a role in my overall happiness. As long as I am able to buy the necessities without stress or worry, and I have a little extra to have some fun once in a while, I can really be quite happy.
What about you? Do you always feel like you need more money to be happy? Perhaps you just need to change your perspective!
Share your experiences by commenting below!Â
***Photo courtesy of https://www.flickr.com/photos/marinadelcastell/8916590367
