Article on money and happiness

[Trillian42]

I found this an interesting article: http://finance.yahoo.com/columnist/article/moneyhappy/21423

It talks about how people think they need more money for more happiness and when they get more money they use, so they still need more. It applies to some of things we've discussed here. Any thoughts? comments? concerns? :)

[redav]

It talks about how people think they need more money for more happiness and when they get more money they use, so they still need more. It applies to some of things we've discussed here. Any thoughts? comments? concerns? :)
You can never earn more than you can spend. So there is no magic amount that can make people satisfied. I've seen similar articles before that address the money/happiness issue. Generally, they found that increasing income to around 40k-50k does increase happiness, but beyond that it's a crapshoot. One determined that the limit of the income/happiness correlation was determined by the upper end of your neighbors--truly a case of the "Joneses"--once you catch up with them, you don't get more satisfaction from money. So, the key to being happy is wanting what you have and not having what you want. And once you are happy/satisfied, you don't need all that other stuff, so your expenses are simpler/cheaper, and you instantly become more stable/comfortable.

I found this article's comments about "time affluence" to be very interesting, and probably accurate. Going back to the recent thread on commutes, that is also a time-sucker. A shorter commute instantly gives you more time in the day, and saves money to boot.

I found the comments about people not feeling confident in their financial abilities disturbing. I think it is true that many people are uncomfortable with the issue, but I think it is generally an irrational fear, meaning they are capable, but they do not believe that they are. No one needs to be a guru to manage their money and make/keep a plan. The same thing can be seen with filing income taxes. Very few people actually need to hire someone else to do their taxes, but they have been conditioned into it. I think the same driving force is at work preventing people from liking/excelling in math in school.

[Trillian42]

I really found the article interesting because I just received a sizable raise in my salary and I'm trying to keep living like I don't have the extra money. I find myself now more willing to buy something that I just want, rather than before I would really think about whether I would need or use it. I keep having to remind myself to save the new money for the future.

[redav]

I really found the article interesting because I just received a sizable raise in my salary and I'm trying to keep living like I don't have the extra money.
Have you direct deposited the increase into a savings account? If you have access to a 401(k), that would be a good place or use it to set up an IRA. Even if you put it into a regular savings account it will be easier to continue to live like you never got a raise, because it won't be burning a hole in your checkbook.

[SaltedSparks]

I honestly wish we could go back to the days of bartering.

So how about it, my squigs and two chicken for your ipod?

[Trillian42]

Have you direct deposited the increase into a savings account? If you have access to a 401(k), that would be a good place or use it to set up an IRA. Even if you put it into a regular savings account it will be easier to continue to live like you never got a raise, because it won't be burning a hole in your checkbook.

I have always had direct deposit. The main thing I plan to do with the extra money is squirrel away as much as I can into an SEP IRA.

[wordsmith]

I honestly wish we could go back to the days of bartering.

So how about it, my squigs and two chicken for your ipod?

My father still lives in this world.

I can't count the number of times I was embarrassed by him as a kid, because you're in a store, getting some item, and the salesperson gives the price, and he'd say, "Yeah...I was thinking more along the lines of $ ___." And y'know what? More often than not, they'd go for it.

[WorkInProgress]

I found the comments about people not feeling confident in their financial abilities disturbing. I think it is true that many people are uncomfortable with the issue, but I think it is generally an irrational fear, meaning they are capable, but they do not believe that they are. No one needs to be a guru to manage their money and make/keep a plan. The same thing can be seen with filing income taxes. Very few people actually need to hire someone else to do their taxes, but they have been conditioned into it. I think the same driving force is at work preventing people from liking/excelling in math in school.

Maybe. I don't find it as disturbing or problematic as you clearly do. I think there are lots of things that individuals can do (or at least could do) for themselves that they don't want to do/can't do/hire somebody else to do. Stuff like: taxes and financial planning (like you've already mentioned), car maintenance/repair, minor electrical work, plumbing, house painting, home decorating, tailoring...

[redav]

I have always had direct deposit. The main thing I plan to do with the extra money is squirrel away as much as I can into an SEP IRA.
OK. I was aiming more along the lines of direct depositing it into dif. accounts (most of my paycheck goes into my primary account, but I have portions go into other accts that are more out-of-the-way) so it's easier to save it--out of sight, out of mind.

Maybe. I don't find it as disturbing or problematic as you clearly do. I think there are lots of things that individuals can do (or at least could do) for themselves that they don't want to do/can't do/hire somebody else to do. Stuff like: taxes and financial planning (like you've already mentioned), car maintenance/repair, minor electrical work, plumbing, house painting, home decorating, tailoring...
It doesn't bother me much that people hire others to do things for them. It's more that there's a message of "You're not smart enough. You're not talented enough." And they believe it. I've talked with many people about filing taxes who responded with "What? You can do it yourself? Isn't it hard?" They're selling themselves short and not taking a personal interest in what happens in their lives. I guess that's what I really have a problem with.

[wordsmith]

I can see contracting out for your tax work, if it's a convenience thing, but my taxes aren't remotely complicated. Not nearly enough to warrant paying somebody to do them. I loathe and despise math, but I'm pretty good at copying things from one form to another. :rolleyes:

But, I don't see that it's any more or less of a personal interest in what happens in my life. If I fill out my tax forms, or if H&R Block two doors down writes the numbers on the blanks for me, I'm still getting or paying whatever it is I'm getting or paying.