Here Is the New Price of Happiness
Written by
J. Arky
Edited by
Zuri Anderson
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The cost of living feels like it is going up each and every day. How can you afford rent, groceries, transportation, and other essentials, let alone make yourself happy?
USA Today reported that a recent study from Cardrates.com “found that 56% of Americans say they would be content with a liquid net worth of over $200,000 dollars.”
GOBankingRates asked several experts if that is, indeed, the new price of happiness and if not, how much money it takes to reach the financial and emotional milestone of having enough to be truly content.
Stability Versus Luxury
“For starters, there is security. For most of us, happiness is so closely related to the knowledge that we’re financially secure,” shared Paul Herskovitz, Discount Lots founder and CEO, noting that being able to pay rent, put food on the table, access health care and provide for an education are the basis of peace of mind.
“A comfortable existence doesn’t have to involve splurging on luxury cars or designer outfits. It means not worrying about bills at the end of the month,” Herskovitz continued. “For those living in large cities or pricier areas, $200,000 could be a more reasonable amount to have to cover those costs. But in other areas of the country, $100,000 can get you quite far.”
In order to get there, Herskovitz advised to concentrate on savings and passive income and start investing in your future in stocks, real estate or retirement funds. This allows you to position yourself for the long term, so you don’t have to worry in the short term.
Needs Versus Wants
According to Robert R. Johnson, professor of finance with the Heider College of Business at Creighton University, everyone needs to prioritize what expenditures are really important and not spend money on goods or services that aren’t as important, noting that economists see this through the lens of “utility theory.”
“Each of us has a unique utility function that quantifies the amount of utility (happiness) each different good or service provides us,” explained Johnson. “We should focus our expenditures on those activities that provide us the most happiness and limit our consumption of goods and services that provide us with less happiness.”
“Attempting to come up with a single number on how much money one needs to make to achieve happiness is simply an impossibility,” Johnson concluded.
Intentional Spending
To achieve happiness, Melissa Murphy Pavone, founder of Mindful Financial Partners, described it as less about chasing a dollar amount and more about asking: “Am I spending my money and my time in ways that align with what I value most?”
For Pavone, intentional spending is where “the magic happens” because “when we pause and really define what matters whether that’s time with family, freedom to travel, building a legacy, or simply peace of mind we can then craft a financial life that supports those values.”
“I don’t believe there’s a single dollar amount that guarantees happiness-not $70,000, not $200,000, not even $2,000,000,” Pavone shared and advised that everyone should define what enough means for them and their family, the spend and invest in alignment with your values so you can reclaim your time as your most valuable asset.
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