> I live in the Netherlands where 40K is quite a reasonable income. I really dont get why you would need 100k to do the things you need. Perhaps people need to become a bit more frugal?
What I have found is that the majority of "happiness from money" comes from the financial security, not actually spending the money. The reduction in stress going from a chronically broke PhD student to having 5 years of living expenses in savings is huge.
It's the knowledge that you can immediately solve almost every problem that pops up with a bit of money, and figure out the details later. Missed your flight? Book another one. Car trouble? Call assistance and take an uber. Lost your job? Take a short vacation and then hit up your network on LinkedIn.
And in most countries in Europe, you can feel secure with a lot less in income/savings than in the US. You don't need to worry about what your health insurance does not cover, probably don't have any student loan debt - and probably don't need to worry about a college fund for kids, can commute by public transport in cities, have better unemployment protections, and so on.
> It's the knowledge that you can immediately solve almost every problem that pops up with a bit of money, and figure out the details later. Missed your flight? Book another one. Car trouble? Call assistance and take an uber. Lost your job? Take a short vacation and then hit up your network on LinkedIn.
And then your expectations shift, you require more expensive things to acquire that base level of prosperity and satisfaction, and you have a whole new set of problems which feel just as stressful, relatively speaking.
This seems to be a common assumption but I have not found it to be true in my experience at all. My spending habits appear stagnant and mostly rooted in my childhood experiences, and it's a continual battle to spend more.
There's that idea that giving poor people money will have them just spend it gambling or buying drugs, doesn't seem to be true, either.
A lot of these just sound like justifications to pay people less, or an odd way to shame people for wanting something material. Money is power, and power is always valuable.
I am speaking about spending habits, you seem to be talking about relative cost of life events. I don't have kids but kids are usually not what people are referring to since kids are a cost increase for all parties, rich and poor.
Basically, if I usually buy a certain Ikea table if I need a table, I still buy that Ikea table, and it still feels too expensive to me, regardless of the fact that I earn a lot more now. If I get an apartment that I like, I don't have any desire to get a more expensive one. I only want a more expensive one if the current one is really bothering me for some reason. I'm still uncomfortable with purchases of certain amounts, or buying things for myself in general (particularly, clothes and furniture). It's physically painful to spend certain amounts of money.
There's a set point in my brain for how things are supposed to cost, and that point is very hard to move. I.e., it takes actual effort to explain to my brain that I can spend more now. There's nothing automatic like the general wisdom suggests.
Getting to that point of equilibrium takes some spending, however. Lots of college debt, rent, moving expenses to get where you want your career to be, etc.
This is probably not true based on what I have read. Of course some people get stuck on a hedonistic treadmill, but most people don't. I think when you can take time off from work and afford safe living and food is no longer a concern, indulge in hobbies, that is enough for most people to be happy. Studies I read say that experiences will provide longer term happiness over "stuff". You can always jump off the treadmill of needing the next better possession.
I agree except with the "most". I see far too many people driving new BMWs and Mercedes that I know on average make sub $100k salaries. I'd say most are in the treadmill, but definitely "many" are happy living within their means.
Just an edit: I think it goes back to our shortening attention spans and modern conveniences quite a lot. Being bored and comfortable with it at some level is an important life skill.
What I have found is that the majority of "happiness from money" comes from the financial security, not actually spending the money. The reduction in stress going from a chronically broke PhD student to having 5 years of living expenses in savings is huge.
It's the knowledge that you can immediately solve almost every problem that pops up with a bit of money, and figure out the details later. Missed your flight? Book another one. Car trouble? Call assistance and take an uber. Lost your job? Take a short vacation and then hit up your network on LinkedIn.
And in most countries in Europe, you can feel secure with a lot less in income/savings than in the US. You don't need to worry about what your health insurance does not cover, probably don't have any student loan debt - and probably don't need to worry about a college fund for kids, can commute by public transport in cities, have better unemployment protections, and so on.