Monday, March 21, 2005

$40,000 a year will do it

Here's an interesting article that basically says that with a $40,000 salary, you'll be able to fulfill basic needs and that will bring you happiness. I think it's a decent theory - though I would question this amount without including the cost of living differential... $40K in J-town would make you the richest man in town whereas in Boston it's barely enough to make it.

I've discussed this theory prior to it being published with several people - basically that if I can just make a bit more $ it'd be enough... Let's call this amount $50K in Minneapolis (I think me and friends like to spend more on clothes, travel, and drinks than the average guy). With that amount of money, you can get a decent place to live, eat out regularly, buy things you want (within reason) and still be able to maintain a savings account. However, let's say you get a raise to $75K - I theorize (is that a word?) that the percentage of my salary I'd be able to save would skyrocket - because I won't upgrade to an apartment that costs 1.5 times as much, I won't eat out 1.5 times more often, my utilities won't cost 1.5 times more than they did previously.

Some say that I'd certainly blow that extra $25K if I made it, I tend to disagree. What do you think?


At March 22, 2005 11:43 AM, Anonymous Anonymous said...

I don't think that you'd definitely spend the entire $25K, but I do think that you would spend some of it. Probably between shopping for nice clothes and possibly upgrading a car and incurring a larger car payment, I would bet that the average person would only save $10K of the extra $25K.


At March 22, 2005 3:43 PM, Anonymous Anonymous said...

Okay - not to hog the posting, but I just read the article and is it just me, or did it basically say that it really doesn't matter how much $ you make, just as long as you have plenty of sex to make you happy? I love the last line of the article - classic. - Zip

At March 24, 2005 4:02 PM, Blogger MichaelKrans said...

You spend what you matter what the amount. Well, of course there is a probably a point, maybe $500K or $1,000,000 a year?? No, take it back, you spend what you earn.


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