Happiness, It’s not what you earn it’s what you keep that matters. What is the difference between someone who makes $100,000 a year and after taxes and their living expenses are paid they have nothing left. And someone making less than $10 an hour and barely squeaking by?

NOTHING! Both are broke after paying their bills and are paycheck slaves.

So maybe you don’t make $100,000 a year but something like $50,000 a year. The same issues are true. I have seen a few times that studies suggest that people making $75,000 a year is when they feel the happiest. These studies say that Happiness diminishes as you make more or you are making less. I guess what I am writing here about is a challenge to that notion. My challenge is that people have different spending habits. Or as I say spending weaknesses. It’s not what you earn it’s what you keep that matters.

The Income to Spending Scenario to support It’s not what you earn it’s what you keep that matters

If I make $50,000 a year and my cost to live my life on my terms, where I focus on the happiness value of things. Where the stuff that I buy and pay for cost me $30,000 a year. Leaving me $10,000 to $15,000 after taxes to save and invest. How does that compare to someone making the preached $75,000 a year happiness salary level or maybe makes even more but lives above their means?

Meaning, after $75,000 a year or more in salary they have zero money left to save because they are addicted to the consumerist norm. Buying all the stuff they think they need to buy to fit the picture of success that is displayed and pushed to everyone. How can they be happier than I am with a $50,000 salary based solely on their income number. When I am saving and investing money for my future and they are not? I have to say they can’t be happier because it makes no sense.

Statistics and Numbers, they can mean nothing.

Sometimes statistics and numbers are thrown around and people take the easy way out to make a headline. Unfortunately most people fall for it. If you don’t make $75,000 a year and can’t see any way to ever make $75,000 a year don’t fall for the hype behind the income happiness figure. You can be just as happy and probably happier by living a smart-frugal and balanced lifestyle.

There is a cost to meaningless stuff that never ends and it adds nothing to your happiness. Everybody doesn’t need an unlimited data plan from a top 3 carrier associated to their smart phone. Everybody doesn’t need a new car every three years. Everybody doesn’t need a 2000+ square foot house with 4 bathrooms and 2 living rooms.

If you look at your budget and cut out all the wastes, no matter what you make a year. Find ways to pay off your debt and/or save. Then you will find that your happiness will increase. That is because you feel a sense of freedom to have taken control of your financial life.

I am not talking about throwing away everything that brings joy to your life, but a real look at what really makes you happy. Look at what your frugal threshold is. Push against it but only to where you don’t feel like you are living a deprived life. Develop a strategic financial plan, whether it is to retire early or to just live a happier life. Focus on what brings a real happiness value to your life. The sooner you start the better.

Let me know what you think and any comments you might have about income and Happiness, It’s not what you earn it’s what you keep that matters.