How much do you want to earn per year?
I have a pretty simple question today for everyone. I’ve read plenty of statistics that try and describe what the perfect income level is to achieve maximum happiness. Some studies say that once you earn $50,000 per year, anything more than that really doesn’t matter. Other studies say the number is $75,000. Sam, over at Financial Samurai, thinks that the ideal level of income is $200,000.
I plan to use the data collected here to write a follow up post in a few days. But for now, please indulge me by answering the following question (at least to the extent that you feel comfortable). You can answer based upon personal stats or household stats.
1. What level of income do you desire to earn?
2. What is it about this amount that makes it your target amount (i.e.. you believe it will make you happier, solve problems, etc.)?
3. How does this amount compare to your current level of income?
4. In general, what part of the country do you live in?
Currently I’m making $7500 for 4 months of work since I’m an intern.
1. I desire to make over 70,000 a year after taxes (5833.33 / month).
2. I want to be able to pay off a house very fast and save lots of money. I grew up with parents that weren’t the best of money and even now it causes me a bit of stress.
3. It’s quite a bit more and will take lots of hard work. I’m hoping that through working both smart and hard I’ll be able to reach my goal.
4. I live in Florida at the moment where housing is still through the roof.
-Ravi Gupta
We currently live in Southern California on about $50,000 a year net, and have kept that constant while our income has risen substantially in the past few years. I’d like to earn at least $500k, which would primarily come from investments (actually, by that time it probably ALL would come from investments as opposed to a W-2 salary). I feel that a number like that, combined with our naturally frugal daily living, would enable us to do pretty much whatever we want as far as travel and giving while still being able to save aggressively. I don’t expect this will make us happier specifically, but it will give us the freedom not to work, to raise our eventual kids, to see the world on our own terms, etc. We’ve got a long way to go to make that a reality, but we’ve made huge strides in a few short years. And we’ll never stop saving and investing a chunk of our income, so theoretically our income will keep rising even in “retirement.”
I’m in Georgia and 50,000 would be just fine for me. As a single lady, I know this would cover basic needs and give me what I wanted to retire early. It’s just a little more than what I make now and I keep my expenses low.
Wow, that’s a ralley clever way of thinking about it!
This “free sharing” of information seems too good to be true. Like cmomunism.
1. $100,000 would do me just fine, definitely not the amount I “want” though. There is no limit on what I want.
2. This is about twice what I’d need to live the perfect lifestyle. Two times the income I’d need means I can use the remainder over several years to have all my “needs” covered by the money that I saved by not following the excessive “wants.”
3. Several times more, especially considering I have costs now that I won’t have in the future. (School, time loss, etc).
4. The cheapest part of the Midwest you can imagine.
So, nobody wants to earn less?
I am going to talk more about this topic soon, stay tuned.
I want to make enough to have nice things/experiences now and in retirement. I’d like to have a family that lives comfortably. I want to leave a legacy. To do this, I think I would need to start making $150,000 to $200,000 a year within 15 years. I am in my late 20s now. That amount is bunches more than I make now, but I am working on my MBA:) I live in the upper midwest where a young man can get a mortgage (PI) for about $400 a month in a nice neighborhood (if you are a little lucky).
Jonathan H. – I live in the central U.S. (similar r/e prices). I love being able to buy a nice house for not much money. One of the great benefits to living in “flyover country”.
Thanks for stopping by, don’t believe I have seen you around here before.
1. At 150k I think hubby and I can live quite well
2. We can save for a house in a good nieghborhood, visit family, travel, and celebrate birthdays and anniversaries well, oh and pay off our monster student loans.
3. We aren’t there yet
I’m sure we will pass it thought since I’m gonna be a dentist and hubby is in med school.
4. Florida
I’m a beaches and palm trees kinda girl. And I don’t do well with winter. I lived in Chicago. brrr.
Your’s is a point of view where real intelligncee shines through.
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$500,000.
Why? Because I would never, ever have to worry about retirement, college expenses, housing expenses, anything pertaining to money. Plus, I want a whole Brady Bunch of kids; a bunch of our own and adopted.
Employer life insurance is tied to income, so half a million will also ensure my family is well taken care of in the event of my death.
Also, by making half a million a year, we can easily give away $100,000+ without feeling any sort of pinch.
Lastly, and selfishly, I want an Aston Martin. Money doesn’t buy happiness, no, but an Aston Martin brings happiness at 120 mph.
PS… I’m 27 and currently earn $100K, and live in the Midwest.
At last some rtaioalntiy in our little debate.
There’s a terrific amunot of knowledge in this article!
Wow! These incomes seem really high!
Before taxes we make 65k and that seems just fine. We own a decent house, are rapidly paying back school debt and give to church and charity. I guess it would be nice to make a little more, but not if I had to work more hours!
Granted, when we have kids, I would like to see this go up to about 75 or 80k.