Money Can Buy Happiness -- Up to $75k (Reston, Tysons Corner: middle-class, apartment)

[seiketsu]

According to the study referenced here, people's emotional well-being increases with income up till about $75,000. After that, an increase in income doesn't really correlate with an increase in happiness.

Because we all love to think [anecdote]n = data, what is/was your happiness threshold for life in NoVA? Did a change in family situation (marriage, kids, divorce) change that?

I moved here out of college with a salary of about $46k. At the time, I felt like I had hit the jackpot, as I grew up with several siblings in a one-income, middle-class household, followed by the lean years of life as a student. I was able to rent a one-bedroom apartment in Tysons Corner, no roommates. I carefully followed a budget.

Then I became materialistic, and suddenly each raise was quickly absorbed. I bought my condo in Reston around $55k, but didn't feel comfortable with my monthly expenses until I hit $60k.

I think $75k is about right for my happiness threshold -- but I am single, no children, no debt other than mortgage. That amount pays the bills, allows me to live closer in to DC, gets me everything I *need* and a whole lot of what I *want*. I have a general budget in terms of what I'm willing to spend for certain things, but I don't have to worry about keeping track down to the dollar.

I don't really see myself as a six-figure earner, because I know I would get caught up in better car / nicer house / more exotic vacations and never feel like I had *enough*.

I also know I wouldn't be able to deal with the stress of any job that pays that high. I value a smooth work day and copious free time more than I do the benjamins at this point in my life.

You?

[Yankeesfan]

My dad started his first full-time job in 1958 making $5000 a year and said he thought he would "have it made" if he ever got up to $10,000 a year!

And at my first full-time job in 1981 my salary was $10,000 a year. I was supposed to go to $12,000 a year after six months but they liked me so much they gave it to me after six weeks .

[oneasterisk]

Originally Posted by seiketsu

I value a smooth work day and copious free time more than I do the benjamins at this point in my life.

I'm in complete agreement with you! Salary wise, I'm at a point where my only debt is my mortgage and everything is paid off. Anymore money I make, will just be extra savings and IRA contributions.

Rather than taking on more work responsibilities to earn income, I'm putting my time/effort into investment properties that cash flow money. I did my first one last year and I spend a miniscule amount of time to manage it. Now that I know what goes into managing it, I'll just let a property management company deal with it. It'll mean less cash flow but less hassle on my part and I can focus more on my next properties. The money from the investment property is pretty much passive income at this point. The goal is to have a handful of these properties working for me, with the end goal of having them all paid off by the time I retire. With my own house being eventually paid off by then, I plan to be completely debt free.

[tgbwc]

It is probably relative to what one is used to. For example, I moved to NOVA single in '93 and made $25,500. Now, 18 years later married with one child, I am making just over $72,000 plus the wife's salary and we are doing fine and I'm happy. Who knows if I will ever make six-figures? If I do it will take a while and it probably won't make much difference figuring inflation. After 18 years I am used to and comfortable with my salary, but I am guessing some others would think it's low.