How Much Money Do You Need To Buy Happiness? - MORE Than You Expect
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- Опубліковано 31 тра 2024
- 00:00 Intro
00:19 Salary for Happiness
01:16 Net Worth for Happiness
03:03 UA-cam Polls
03:34 Financial Happiness
05:06 Simply More Money
06:11 The Basics
06:48 Detailed Financial Plan
08:02 Beyond Independence
09:01 Independence & Resilience
09:28 Generosity & Gratitude
11:07 Getting Money Advice
Empower Happiness Survey: www.empower.com/the-currency/...
Some of my favorite books: amzn.to/3KF3tlr
Camera & equipment I use: amzn.to/3Z20lof
Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
Join the family & subscribe to my channel here: / erintalksmoney
Thanks for watching, I appreciate you!
My quote: I don't know if money can buy happiness but I do know for sure that the lack of money brings unhappiness....
Happiness is seeing peanut in your videos. Especially a teleporting one.
You're right about money not being able to buy happiness, but that it can give you opportunities.
Expectations play a big role in feeling happy and content with what you have.
After 35 years of working my husband now earns average income. We live modestly, put 3 kids through school and we are happy.
We are thankful that my husband has a pension and that a small inheritance helped us pay off our modest home.
Congrats! Sounds like you didn't get caught up in all the materialism surrounding us.
I get the feeling that those people who say they need over half a million dollars a year to be happy are thinking only of themselves. I find that if I want to be truly happy I have to serve others. Even if that is just my spouse, or children, but mostly if I am helping those are less fortunate then myself.
I look at my life as I am a steward over the things I have been given. Nothing really belongs to me. Everything I have is a gift from a Higher Power. I will be held accountable for what I do with these things.
We are the leading role and everyone else is a character actor in life
As a Millenial myself, I think some of us are purely delusional lol. Very few households are making half a million per year except CEOs, athletes, and brain surgeons. My wife and I don't even make half of that and we're on pace to retire 1-2 decades before our "retirement age."
😅 please be a good partner. Dating now is way more delusional now. I got a drink dumped on me recently because “you work on cars so you’re obviously poor”. My career being seen as a rip off or low income has shown me so many unrealistic people.
I love How Money Works' take on this. "People say money can't buy you happiness. That's bullshit. Money can buy you anything you want, but I see a lot of people buying themselves misery with it".
I've reached my financial independence, the happiness that brings is pretty huge. The only comparable that happened a few years before was paying off my house. I think the next one will be my retirement in about 5 months. And no I do not like coffee.
Well said Erin! Love that your dog was sleeping right behind you for the video🤣
Money can't buy happiness... But a lack of money can absolutely cause unhappiness.
But if you get past a point of basic needs and a few luxuries and aren't happy, then more money isn't going to add to more happiness.
Really, people have a base level of normitive happiness. A sudden influx of cash, or a new hobby, or a trip can boost happiness for a time, but you will revert to your Baseline over time. More important than seeking happiness is removing negatives that drag your Baseline down. A car that causes problems and stress is a drain on happiness... But while a luxury car will boost happiness, long term you will have the same happiness regardless if it is a basic reliable car or a luxury car. The trap is that people think they can keep buying that new thing.... And that can have infinite escellation of costs, so it is often unsustainable.
I've seen this survey about millennials saying some ridiculous income. I wonder how big their sample size was. Most millennials I know are pretty austere, but I guess that may be a biased sample.
I love your story about the washing machine. It's funny, whenever I have an unexpected expense, my instinct is always to feel lucky and grateful that I'm in a position to handle it. To me, that security is the best thing money can buy, and makes me very happy.
that puppy in the back needs more screen time. they have a lot to contribute.
Its true that money can buy you experiences and that you can and should have memories of them that can last a lifetime - but more to the point - money can buy you security such that you do not have to worry about paying utility bills, new tires or - yes - a new washing machine. The removal of anxiety - or at least financial anxiety - can free up your energies to enjoy the other aspects of your life. Loved watching Peanut taking a nap! I've got two mini-Aussies in front of me doing the same as I type this.
Wow, people are greedy if they think they need close to 44k a month to be happy. That's half of what my wife and I make in a year.
Money gives you financial freedom, not happiness.
Love your videos
To me, freedom is happiness. 😊
@@soldierhobby2038 agreed
I am trying to not stereotype an entire generation but the Millennial responses deserve a deeper dive.
Those are some disturbing numbers and, if accurate, paint a troubling picture for the expanding generation gaps.
Happiness is paying your bills with some left over for savings and maybe a vacation once every few year’s so that is the amount you would need
What I've read and it seems to ring true to me is you need a certain amount of money to be happy, and I've seen different figures for that amount but after you reach that amount more money does not make you happier. So I think you probably need as much or a little more than you grew up with and all your basic needs are met. As long as your lifestyle is as good or a little better than they thought it would be, you will be happy. There are hundreds of case of entertainers who made a ton of money and it destroyed their lives and they were not happy.
I was happy when i was poor just more stressed. Now that i have money the only change is less stress. Many of my co-workers that make the same or more are still stressed because they still live check to check. Break that cycle for happiness.
The first thing that came into my head was the Beatles and their song, "Can't Buy Me Love". Seriously, I think of money as Security. Eat Bad Food or become an Alcoholic or Drug Addict; you will kill yourself slowly and along the way you will mess us your mind and happiness. Always getting a Rush from buying things; that will wear off and the next bump will not be as good. Learn how to support yourself and then have a Bank Roll for Life's Emergencies.
Plan for your Future. After that you will have Peace of Mind. I love some time when I go to the Diner down the Street and have a good Breakfast. Then my Walkman and a long Walk. That really makes me happy.
I see Peanut! ❤
I think it's when you don't have to worry about buying the small or medium sized things. Big things are generally well planned out (house, a new car, etc...) and shouldn't worry you once you have a solid way of paying for it.
Money can’t buy happiness, but money can help remove many of the obstacles to being happy.
The goalposts of "happiness" are constantly moving. Many folks overlook their current blessings due to envy, greed, and material things. And, of course, advertisers exploit all three.
Money has a diminishing return. Once your needs are fully met, more of it doesn’t really do much for you. At end of my career I walked away from a very big bonus. Just decided life is too short and I was not enjoying my job. Retired at 57 and been living off my investments now for three years. Not making nearly the same money, but certainly enough and much happier and healthier than ever. When do you say enough is enough. Different for each person no doubt.
I had a similar experience. I retired at 59; I'm living on less than half of my salary, but my debts are small, my house is paid off, and I am much, much healthier and happier. I didn't realize how toxic my job was until I finally had the courage to walk away from the money. I would rather be a custodian than go back to that life!
when do you say enough is enough? When you have enough to say FU to hypocrites and their ad money like Elon did.
Happiness is an inside job. I think having money helps with my financial security or making me feel secure. If I don't have money I will feel unhappy and worried. If I have money I will not have the worries of not being able to cover expenses. Yet I might still feel unhappy because for me to be happy means to have complete control over my emotions, I push my own happy button and don't let the world, life and people push my unhappy buttons or ruffle my feathers.
Just for the record, I don't like coffee :) Good video, Erin.
Gen X here. Going to have a house paid off in 7 years out of a 30 year mortgage [July 2024]. I bought the house on my own in a top school district at a 4% rate. 4 bed, 2 bath with a pool and hot tub. One story to keep costs low. My only life indulgence was the pool and hot tub. Zero regrets. All in our monthly costs including utilities is $1800. After the house is paid off we will have zero debt and we will be way below our means giving us the ability to invest more. I bought the house on my own, but put my wife on the title as well. We just got married last year, a little later in life. Fast forward to 2024. This will also allow us to have kids and keep it real in terms of costs associated with a child. Sure I've started late in life, but at this point I'm okay with that. Focusing on being debt free has given me peace of mind, happiness, and an overall positive outlook in life. All of this on a $120k per year salary on my own. Add in my wifes salary (and her savings), has brought a realistic outlook on life and happiness.
I do not believe money can or will buy you happiness. Accomplishing a goal with your finances could. Also you do NOT need money to achieve happiness either, but if you have none, likely you have other issues that will cause you not to be "happy" Again, I believe the better word is contentment.
So that $7 daily cup of coffee would be worth $1.357 million dollars after 40 years (assuming a 10% rate of return). Combine that with buying a $15 lunch daily when at work and you could end up with $3.430 million dollars. These little things do add up over time. Is that joy of a daily $7 cup of coffee really worth it?
Financial happiness comes down to making smart financial decisions and living below your means. The key thing is to understand the difference between what you "want" and what you "need". Should you spoil yourself ever once in while? Sure, but don't make it the norm. And never do it on big ticket items like cars and houses.
I think the level of happiness goes up with net worth or income only to a point. A state of happiness is somewhat individual, however we are asking a group of people to answer this question. I think others have asked this question or something similar in the past and I recall an income of 70k (probably about 80k after being adjusted for inflation) being the income per year level beyond which happiness doesn't increase appreciably. 80k / year expenses applied to financial freedom is 80 x 25 = 2 million.
I recently saw the results of that survey, and I have to admit that I was pretty surprised by those Millennial numbers. After a little reflection, I basically came to the same conclusions you did. As far as the rest of your points, I couldn't agree more. Hopefully, more folks will see the light. Now, since I really dont have any issues with your videos, we need to find a way of getting your subscriber number's up! 😅
Engagement for Erin. Keep up the great work.
Happiness is a choice within your life, as long as basics are covered. Making good decisions and avoiding stress inducing behavior goes a long way supporting happiness. I drink tea.
I found it rather telling that when Erin mentioned their washer broke down, the concept of getting it repaired wasn't even proferred, but getting a new washer and dryer (and their financial ability to do so) was simpky a given. It enlightened me as to who her intended audience is, and that I wasn't among them.
My washer and dryer are over 15 years old - I have in fact repaired them several times by watching you tube videos. This last time it broke I tried but couldn’t find how to fix it…for the first 3 days. But then luckily I did find a UA-cam video with a clue and was able to fix it one last time. That washer is hanging on for dear life! (There have been lots of videos where I talk about that washer 😂 I originally got the set at my first apartment for $100 and they have moved all across the country with my husband and I. One day it will be time to replace them.)
I know this may sound a bit cliche', but to me, its obvious that no rational person literally thinks that you can buy happiness. That being said, money makes misery a whole lot more tolerable. What we are really talking about is a level of security that allows you to feel that you are ready to explore what happiness means to you without the worries financial challenges create that distract us from being able to begin this personal exploration.
our whole economy is literally based off of people who literally think you can buy happiness.
How does one find a survey to take like the one you posted? That was interesting. If I did win a 20M Lottery I know I would be happy, but I am happy without it and I'm too cheap to buy a ticket! Great video Erin.
Great video!
thanks for the content. Its great!
Great video. Your mindset reflects my own on this
Using a vague undefined term like financial happiness in a survey is a great way to not get the data you’re looking for. Everyone will answer based on their own interpretation.
I’d be more interested in an annual “how much in total did you spend this year (excluding investments, but including housing)?” survey. Even better if the survey respondents include their salary and net worth, or answered with expenses as a percentage of salary.
Happiness is watching Peanut napping in the background of these videos.
Contentment is a better goal than happiness. I think of it as a longer term more enduring state of satisfaction, rather than a fleeting state of pleasure
Love seeing Peanut again. Thanks for another great video.
Erin - it appears your puppy is perfectly happy snoozing on the couch!
5:50 I strongly disagree with the idea that $25,000 couldn't significantly increase happiness for some people. For people who are living in poverty (or even some who are theoretically middle class), that could be a game-changing windfall that would help them break out of a payday loan cycle, buy a vehicle so they don't spend hours commuting using poor public transportation, or pay for medical care. Rolling one's eyes at $25k is possible from a position of privilege.
I believe the idea was that, LONG TERM, $25,000 wouldn't significantly increase happiness for some people. I've worked and lived with people who are impoverished. I've seen windfalls drop into a few lives. Without the knowledge and will to make the most of the money, it was wasted and merely served to create a larger debt load. Seen that more than a few times. You offered some examples that are sound, but I would wager that most people in poverty, who find themselves suddenly "gifted" with a large sum, wouldn't drop that entire sum into any of those strategies. My father came from EXTREME poverty (outhouse in the back yard); I grew up "impoverished", or "poor". (As in, wearing clothes that don't fit and eating meat just a couple of times a week.) It takes decades and a strong will and determination to turn it around; money is merely the by-product of that. A sudden influx of money won't change the lives of anyone who isn't already striving to get out of poverty, and here's a conclusion I've come to -- after years of observation: Most people in poverty seem to be content with it. They complain, but they don't do anything about it aside from asking for more benefits. I've watched people turn down job opportunities because they found the idea of working nights or weekends distasteful. Poverty is as much a state of mind as it is the conditions one lives in.
I suspect most would just blow the windfall on a cruise or drugs.
Some, not most. There are many poor people that just need a little boost to meet their goals. Like a newly single parent.
Thank you for putting finacial videos together.
I enjoy watching the money guys and you. It helps me stay on track day to day of saving and not spending.
The survey inquired about being "financially happy" vs just "happy", which can be two completely different things of course. Also the poll is posted from Erin Talks Money, so the audience could have very different expectations, needs, desires, lifestyles, etc. than other people. The poll results seem pretty reasonable for me as a follower of the channel, but someone with a very different background, ambition, etc. may have completely different opinions on the amounts needed for financial happiness. Great channel topic, today!
I agree. She shows the graph that shows source from Empower specifying the questions as, "how much does your annual salary need to be for you to feel happy/less stressed?" Now there is a difference between happy and less stressed, too. Empower headlines, "Can Money Buy You Happieness: Financial Happiness?" If you look at Empower's posted methodology, it's "Financial Happiness" study is based off of survey responses conducted by The Harris Poll. and from Empower Personal Dashboard (TM). Empower is at it's core an insurance company which sells annuities under Empower Annuity Insurance Company of America and its subsidiaries, and wealth management and premium financial planning services under Empower Advisory Group. So, weigh its "study" in terms of it gathering data to target to increase its market capture.
For every family member add 1 million to total net worth to feel somewhat secure, so 2 adults + 2 kids 4 million to be near a major city in the US to combat inflationn and emergencies
Cute dog sleeping behind you
I think the phrase should be “stuff can’t bring you happiness” instead of money. Money is the freedom to live my life how I want to. Stuff past a certain point is just a drain on my money and mental health.
Great content as always but got side tracked looking at your pup in the background. On the couch.. On the floor... so cute.
If your life is a disaster no amount of money can fix it. I’ve been poor and happy and now well off and happy, the miserable will always be miserable.
True, but when you’re poor many small things are disasters when they are just an annoyance for rich people. I’ve been on both sides of the coin. A few years ago a 30% increase in groceries would have hurt bad, now it sucks and I notice but it doesn’t hurt.
@@sstrongman1667but there are also more ways to make yourself miserable with money. I make less than 50k but I have relatives who make a lot more. Some of them make choices that I couldn't afford to make, even if I wanted to, and those choices often ruin their lives.
So I think that money just changes the method for misery.
Let's say that you are married with 2 kids and you don't have money even to bring food to the table.
Do you think this family can be happy? Is it possible in this scenario the wife not to complain at all?
@@Kastoraki haven't you read A Christmas Carol by Charles Dickens? The Cratchit family had so little money that the Christmas meal they had was a luxury.
No one said anything about not complaining when things are tight. Heaven knows I do my fair share. But I grew up poor. I know how to be resourceful.
Not going to lie, I was distracted by your yorkie the whole video :)
The insight millennials haven’t made is that just being in the US, you’re already in the top 10% of world income. And if you have any degree of specialization, you’re in the top 1%.
Don't forget regular car and home insurance. I knew a couple who had a 30 year mortgage. The insurance was part ot the payment. House paid off finally. Husband decided no longer needed house insurance, since house paid off. 2 years later house struck by lighting. Burned to the ground. So they move to town . Started renting. Rent 400 a month. 2023 rent now 1100 a month. Husband died. Widow cant afford rent anymore. Moving in with family.
what is the name of your doggie? what kind?
I think the Millennials must be a very unhappy bunch. As the recent late Charlie Munger said, always set your expectations lower
For my wife and I it’s having enough to live our life without having to worry about running out of our retirement nest egg, and being able to control when and where we retire.
As a retired couple we draw $150K per year and enjoy a very happy lifestyle (travel, camping, going out to eat). We could live on less, but we are a bit unusual as we carried debt into retirement. We purposely did this as our loans are at very low interest rates and wanted to keep capital working for us. It has worked well so far as the draws from our investment pools have been less than gains for the year. Money is most certainly important but an always can adjust life to stay within our means assuming a minimal lifestyle can be maintained.
It is NOT unusual to carry debt into retirement, just usually not a good idea. We have no debt and draw about $130k per year. Plenty happy due to no debt, no stress, and plenty of discretionary income. The happy part is the lack of stress, and knowing that we are good no matter what gets thrown at us financially.
It is only somewhat about portfolio size, more so about cash flow, and more debt requires more cash flow.
150k per year lol. I appreciate that you could live on less if needed but most people can't pull 50k a year for retirement
@@dmm1254 ....let alone active working income.
@@randolphh8005 I have yet to hear a good argument that it is not a good idea to carry debt into retirement if the cost benefit to do so make sense. I went into retirement at 42yo with a 30yr fixed 2.375% mortgage. I'd like to hear someone show me the numbers that shows that isn't a good idea. ok, i liked, i went into 30yr fixed at 3.5% but then refi'd at the lowest 2.375% while in retirement.
@@hanwagu9967 I said usually. Also retiring at 42 is completely different than retiring at 62(like we did) or even later like most. At 42 or 52, it is quite easy to go back to work should things go bad, not so much at 70 or 75. The reason not to have significant debt or a significant mortgage(even at a low rate) is that it creates trouble if you can’t make the payments due to death of a spouse or a major market meltdown. So unless you have a lot of guaranteed income, or a very large portfolio, the debt becomes a risk, rather than just a way to make money.
We have no debt, plenty of guaranteed income and a nice portfolio. We have zero financial risk, even if one dies early. And obviously death is an uncontrollable risk for everyone.
More than retirement savings, my life got happier (strictly from a financial perspective) when I was able to build up my emergency savings fund to $25,000-$30,000. That happened around age 33-35. It’s such a relief when your AC unit goes out or car transmission goes out and you have the cash to pay for it.
As a millennial, I'm taking a year off from working. No wife, no kids, no debt. So I can afford it.
Interesting idea. Even if I was in your shoes I don’t think I would want to do that.
I have never done a year, but 6 months between industry slowdowns have been wonderful to “reset”. Now at the 6 month mark I was ready to get back to doing something.
Goodonya! Read “Die with Zero” by Bill Perkins, if you haven’t already. He is a big fan of doing this.
Are you the type that has to replace both of just the washer goes out? They don't need to be replaced in pairs
I need mine to match because they just need to match.
Best video yet? Hook us in with that eternal question "Can money buy happiness?" and then transition to why and how you need to take control of your own finances. The clarity of mind is impressive (especially with a baby making demands at all hours!).
BTW, the millennial answers don't surprise me. Of the generations (yes, stereotyping here, my bad), they seem the least comfortable on the internal happiness scale, and the ones with the strongest money=happiness mindset, so I fully expect they'd have the highest answers for income and net worth, by a large margin.
Me: A solid financial plan would bring me happiness: Yes!!!
Also me: The thought of me creating and maintaining a solid financial plan makes me very unhappy!!!
well, you can't prove the first, because it is hypothetical until you can get past the latter.
@@hanwagu9967 Um... Yeah, I thought that was kind of obvious in the post... ;-) Kind of the point... ;-)
Are those income numbers based on households or individuals? Bottom line, everything is relative and would depend on life style and where you live. There are retiree's out in the Philippines happy on $1500/month.
Well, being a happy retiree in the Philippines would necessarily mean you'd want to retiree in the Philippines or would be happy living in the Philippines.
11:34 lol
Financial psychology?
It's easier to Rent it by the hour?😉
If you knew me in person then you would have found someone who doesn't like to drink coffee....
I don’t like coffee:)
More THAN, not then, you expect.
Me: People are overreacting with the whole "Millennials are totally different" thing, believing that every generation has their own stuff as they age and this is just normal....
Erin shows the graph where GenZ, GenX, and Boomers are all pretty close and Millennials are just OFF THE CHART...
Me: Um... Millennials, you so crazy!!!! ;-)
well, who birthed and raised the millennials?
@@hanwagu9967 Not GenZ or Gen Y and most of GenX, who look like they are in line with the others.
So, not sure what you point is there. ;-)
You sound like someone who got stuck in the "Boomers bad, they ruined it or millennials" group, and try to use that argument for every discussion, even when it couldn't apply (like in this case where the very specific point was that the other groups also don't agree with millennials.)
You might address the scam chains that appear in your comments and do a video on it. I can't imagine anyone falling for these charlatans, but they wouldn't do it if it wasn't effective.
Good idea! I’d love to watch that!
I have reported them and then UA-cam suspended ME from commenting for 24 hours. Now I just reply “SCAM ALERT.” I welcome people to join me. I’ve never had any of them reply back to my comment of “SCAM ALERT,” which I KNOW they would if they were, in fact, legit.
the bots are hard to get rid of. even if you report as spam, youtube and such likes the money so they just make it invisible to you but not to others.
Quick. Someone pp me 25k and I will tell you if it makes me happy. For um, science.
500k annually to live comfortably 😂😂😂. STOP 🛑 that’s outrageous
Money doesn't buy happiness.
OK, the first thing you've said that I strongly disagree with. Coffee is disgusting. Neither my wife nor myself drink the stuff. Yuck!
well, you probably haven't had actual good coffee.🤣
@@hanwagu9967 Well, I wouldn't be a good judge of that, but when people have given me what they considered "great" coffee, well, it was disgusting.😉
Erin, are you really an older millennial? I thought that you were barely in your 30s.
i believe the kids these days say elder millennial not older millennial.