For years, I've heard some version of the same promise.
“Once I make more money, everything will finally feel easier.”
Maybe you've said it yourself.
I know the thought is tempting.
If you're making $45,000 today, you imagine what life would feel like at $75,000.
If you're making $75,000, you imagine $100,000.
Then $150,000.
Then $200,000.
And somehow the finish line keeps moving.
There's always another salary level that seems like it will finally give you the security, freedom, and peace of mind you've been looking for.
But here's the uncomfortable question I've been thinking about:
What if the problem isn't that you're not making enough money?
What if, at some point, you're simply expecting your paycheck to solve problems that money was never capable of solving?
That's what makes the research surrounding money and happiness so fascinating.
And it's also why I don't think the famous “$75,000 happiness number” tells the story most people think it does.
The original research from Daniel Kahneman and Angus Deaton found that emotional well-being increased with income but appeared to level off around $75,000 in 2010 dollars, while people's broader evaluation of their lives continued to improve as income increased.
More than a decade later, Matthew Killingsworth, Kahneman, and Barbara Mellers revisited the disagreement.
Their 2023 “adversarial collaboration” found something much more nuanced: the flattening effect was concentrated among the least-happy people, while for most people in the sample, experienced well-being continued to rise with income.
That distinction matters.
Because I don't want anyone reading this article to walk away thinking:
“Great. Once I make $100,000, I don't need to worry about money anymore.”
That's not what the research says.
And it certainly isn't how real life works.
The $75,000 Number Was Never the Whole Story
Let's go back to where this idea came from.
In 2010, Kahneman and Deaton analyzed more than 450,000 responses from U.S. residents and separated two concepts that people often treat as the same thing: emotional well-being and life evaluation.
Emotional well-being is basically what your ordinary life feels like.
Are you stressed?
Are you enjoying yourself?
Are you worried?
Are you laughing?
Are you having a terrible Tuesday?
Life evaluation is different.
It's more like stepping back and asking:
“Overall, how do I think my life is going?”
Those sound similar.
They're not.
I can have a stressful week and still believe I'm building a good life.
I can have a great Saturday and still feel deeply dissatisfied with where my life is headed.
The 2010 research found that higher income continued to be associated with better life evaluation, while emotional well-being appeared to stop improving around $75,000 at the time.
And that single number became one of the most repeated statistics in personal finance.
But there's a problem with turning complicated research into one catchy sentence.
People stopped reading the research and started worshipping the number.
There Is No Universal Salary That Makes You Happy
This is the first thing I want to get out of the way.
There isn't a magical income where the government sends you a certificate saying:
“Congratulations. You have now earned enough money to be happy.”
Life doesn't work that way.
Your location matters.
Your household size matters.
Your health matters.
Your debt matters.
Your housing costs matter.
Your relationships matter.
Your job matters.
Your financial responsibilities matter.
And perhaps most importantly, what you're trying to buy with the additional money matters.
An extra $20,000 can mean something completely different to a single parent living in an expensive city than it does to a married couple with a paid-off home in a lower-cost area.
That's why national income thresholds should be treated as research findings—not personal financial commandments.
The U.S. Median Household Makes This Question More Interesting
According to the U.S. Census Bureau, real median household income was $83,730 in 2024.
That number gives us some useful perspective.
A household earning around $84,000 isn't living in some imaginary world where money no longer matters.
Depending on where that household lives, $84,000 could mean very different things.
In one part of America, it might provide a reasonable standard of living.
In another, housing, childcare, transportation, insurance, and taxes can consume a huge portion of the budget.
That's why I get uncomfortable when someone says:
“$100,000 is enough for everyone.”
Enough for what?
One person?
A family of four?
New York City?
Dallas?
San Francisco?
A paid-off house?
A $3,000 mortgage?
Student loans?
Medical expenses?
Childcare?
There is no universal answer.
What Money Actually Buys
Here's where I think the money-and-happiness conversation becomes much more useful.
Money doesn't necessarily buy happiness directly.
Money buys options.
And options can dramatically affect your emotional well-being.
Think about someone earning $35,000 who has $10,000 of credit-card debt and no emergency savings.
A $500 car repair isn't just an inconvenience.
It's a crisis.
Now imagine that same person eventually reaches $70,000 and has no high-interest debt, a few months of expenses saved, and reliable transportation.
That additional income didn't buy a luxury lifestyle.
It bought breathing room.
That's a completely different kind of wealth.
The extra money reduced the number of situations where one bad week could become a financial disaster.
That's valuable.
Very valuable.
The First $50 You Invest Might Matter More Than You Think
This is one reason I like simple investing strategies.
People often think investing is something they can start once they're making “real money.”
I disagree.
If you can afford it without neglecting essential expenses or high-interest debt, even a small recurring investment can begin building the habit.
For example, imagine you invest $50 every week.
That's about $217 per month on average, or roughly $2,600 a year.
At an assumed 8% annual return, compounded monthly, $50 invested every week for 30 years would grow to roughly $350,000.
The actual return will vary.
Markets don't deliver a guaranteed 8%.
There will be crashes.
There will be years when your account falls.
There will be periods when you wonder whether investing is working at all.
But that's not the point.
The point is that a relatively small amount of money, repeated consistently for decades, can become meaningful because of compounding.
And psychologically, something else happens.
You stop seeing yourself as someone who is “waiting to become financially successful.”
You become someone who invests.
That identity shift matters.
Your First Financial Goal Shouldn't Necessarily Be $1 Million
I think the internet has made financial goals unnecessarily dramatic.
Everyone wants the million-dollar portfolio.
The $5 million retirement account.
The seven-figure net worth.
Financial independence at 35.
But if you're currently struggling to pay bills, those numbers can feel so far away that they become meaningless.
I'd rather start smaller.
Your first $500 emergency fund.
Then $1,000.
Then one month of essential expenses.
Then three months.
Your first $1,000 invested.
Then $10,000.
Then $50,000.
The first goal isn't becoming rich.
It's becoming financially harder to break.
That's a much more useful goal.
Money Matters Most When You Don't Have Enough
This is one of the strongest lessons buried inside the research.
The original Kahneman and Deaton study found that lower income was associated with greater emotional pain from negative life events, including things such as poor health, divorce, and being alone.
That makes intuitive sense.
When you have no financial cushion, problems become more expensive emotionally.
A broken transmission isn't just a broken transmission.
It's:
“How am I going to pay for this?”
A medical bill isn't just a bill.
It's:
“What happens if I can't pay it?”
A job loss isn't just a career interruption.
It's:
“How long can my family survive?”
This is why I don't like simplistic advice such as:
“Money doesn't buy happiness.”
Maybe not directly.
But financial insecurity can absolutely buy stress.
And reducing that stress is one of the most valuable things money can do.
The Difference Between More Money and More Freedom
Here's where I think a lot of high-income Americans get trapped.
They increase their income.
But they don't increase their freedom.
They make $100,000.
Then $150,000.
Then $200,000.
But every raise comes with a bigger mortgage.
A nicer car.
More expensive vacations.
Private school.
More subscriptions.
More lifestyle commitments.
And suddenly the person making $200,000 needs that $200,000 just to maintain their life.
That's not financial freedom.
That's lifestyle inflation.
The income went up.
The dependency went up with it.
A Bigger Paycheck Can Become a Bigger Trap
I've seen this pattern everywhere.
Someone gets a promotion.
Their salary increases by $20,000.
Instead of investing some of that increase, they move into a more expensive apartment.
Then they buy a newer vehicle.
Then their spending on restaurants increases.
Then vacations become more expensive.
Then their monthly fixed expenses rise.
A year later, they're making significantly more money but somehow feel exactly as financially stressed as before.
What happened?
The lifestyle absorbed the raise.
This is why I believe one of the most important financial decisions you can make after receiving a raise is deciding how much of it you refuse to spend.
If your income rises by $1,000 a month, you don't have to increase your lifestyle by $1,000.
Maybe you invest $500.
Maybe you pay off debt with $250.
Maybe you enjoy the remaining $250.
Now the raise improves both your present and your future.
The Hedonic Treadmill Is Real
There's another psychological force working against you.
It's called hedonic adaptation.
You buy something exciting.
For a while, you love it.
Then your brain adjusts.
The new car becomes your normal car.
The bigger house becomes your normal house.
The expensive vacation becomes a memory.
The upgraded phone becomes the phone you use every day.
The thing that once felt luxurious becomes ordinary.
Then you want the next upgrade.
This is why consumerism can become an endless loop.
You aren't necessarily buying things because you need them.
You're buying the temporary emotional boost associated with getting something new.
And that boost fades.
Your monthly payment doesn't.
That's an important distinction.
The Most Expensive Lifestyle Is the One You Need to Maintain
Let's say you earn $250,000.
That's an excellent income.
But imagine your lifestyle requires $240,000.
Now imagine someone earning $120,000 whose lifestyle requires $70,000.
Who has more freedom?
The answer isn't automatically the person with the larger salary.
The second person has a $50,000 annual gap.
The first has only $10,000.
And that gap is where wealth gets built.
The difference can be invested.
Used to eliminate debt.
Saved for emergencies.
Used to buy time.
Used to fund a business.
Used to make a career change.
Used to retire earlier.
Financial freedom comes from the gap, not the gross income.
What If Your Next Raise Bought Time Instead of Things?
This is a question I wish more people asked.
When you get a raise, don't automatically ask:
“What can I buy?”
Ask:
“What can this money free me from?”
Could it eliminate your credit-card debt?
Could it build six months of emergency savings?
Could it allow you to work fewer hours eventually?
Could it fund retirement?
Could it give you the ability to leave a toxic job?
Could it help you pay off your mortgage sooner?
Could it allow your spouse to work less?
Could it give your family more choices?
That is a completely different relationship with money.
You're no longer asking money to make you look successful.
You're asking money to make you more free.
The $100,000 Threshold Is Not a Retirement Number
I want to be very clear about this.
The research around income and well-being does not mean $100,000 is the point where you can stop saving.
It doesn't mean you don't need retirement planning after $100,000.
It doesn't mean an American earning $101,000 should suddenly stop caring about income.
It doesn't mean earning $200,000 won't improve someone's life.
And it certainly doesn't mean someone earning $60,000 should stop trying to increase their income.
The 2023 research is much more nuanced.
The authors found that the flattening pattern was concentrated among the least-happy people, while happiness continued to rise with income for the majority of the sample.
That's a much more useful conclusion.
If You're Struggling Financially, Wanting More Money Is Not Greedy
I think this deserves to be said loudly.
If you're struggling to pay your mortgage, wanting a higher salary isn't greed.
If you can't afford childcare, wanting more income isn't greed.
If you're carrying high-interest credit-card debt, wanting a raise isn't greed.
If you have no emergency fund, wanting a better-paying job isn't greed.
If you're worried about retirement, wanting to earn more isn't greed.
Money matters.
And when you don't have enough, additional income can dramatically improve your life.
The problem begins when we assume more money is always the solution to every problem.
Sometimes it is.
Sometimes it isn't.
Knowing the difference is financial maturity.
The Salary You Need Depends on Your Life
Someone living in rural Ohio and someone living in San Francisco can earn the same salary and experience completely different financial realities.
That's because income isn't the same thing as purchasing power.
Your housing costs matter.
Transportation matters.
Taxes matter.
Healthcare matters.
Childcare matters.
Debt matters.
Family responsibilities matter.
That's why I would never tell someone:
“You need exactly $X to be happy.”
Instead, I'd ask:
What does your life actually cost?
Then:
How much income would give you enough margin to live comfortably, save for retirement, handle emergencies, and still enjoy your life?
That's your number.
Not mine.
Not a celebrity's.
Not an influencer's.
Yours.
There Is a Difference Between Enough and More
This may be the most important financial question I've ever asked myself.
What does enough look like?
Not “How much can I possibly earn?”
Not “How much does my neighbor make?”
Not “How much does the richest person I follow have?”
What is enough for me?
Enough housing.
Enough transportation.
Enough travel.
Enough entertainment.
Enough retirement savings.
Enough emergency cash.
Enough income.
Enough free time.
Because without a definition of enough, the game has no ending.
You can make $50,000 and want $75,000.
Then $100,000.
Then $150,000.
Then $250,000.
Then $500,000.
And if your definition of success is always “more,” you'll never arrive.
You'll just keep moving.
What I Would Do With an Extra $1,000 a Month
If I suddenly had an additional $1,000 per month available, I wouldn't automatically upgrade my lifestyle.
I'd divide the money based on my financial priorities.
If I had high-interest debt, I'd attack it.
If my emergency fund were weak, I'd strengthen it.
If I had those foundations covered, I'd increase retirement contributions.
Then I'd consider a taxable brokerage account for additional long-term investing.
And I'd probably keep some portion for enjoying life.
Because I don't believe financial planning should mean refusing to enjoy today.
The goal is balance.
Build the future without completely sacrificing the present.
Your Emergency Fund Might Make You Happier Than Your New Car
Imagine two choices.
You can have a $700 monthly car payment.
Or you can have enough cash to cover several months of essential expenses.
Which one gives you more peace?
The car gives you a nicer driving experience.
The cash gives you resilience.
If your employer suddenly eliminates your position, the second one becomes incredibly valuable.
If your transmission fails, the second one becomes incredibly valuable.
If your income temporarily falls, the second one becomes incredibly valuable.
This is why I think emergency savings are one of the most underrated forms of wealth.
They don't look exciting.
But they reduce financial fear.
And reducing financial fear is a very real benefit of money.
Don't Trade Your Entire Life for a Bigger Number
This is where the research becomes personal for me.
I understand the desire to earn more.
Who doesn't?
More income can mean better housing.
Better healthcare options.
More savings.
More investments.
More security.
More opportunities.
But I also think there's a point where we need to ask:
What am I giving up to get this money?
An extra $50,000 sounds wonderful.
But what if it requires working every weekend?
What if it means missing your children's activities?
What if you're constantly checking email?
What if your health deteriorates?
What if your marriage suffers?
What if you have no time left to enjoy the money?
At some point, the calculation isn't just financial.
It's human.
The Richest Person May Be the Person With Time
Imagine two people.
Person A earns $300,000.
They work 70 hours a week.
They have a huge house, expensive cars, and almost no free time.
Person B earns $120,000.
They work 40 hours.
They have manageable expenses.
They invest consistently.
They take vacations.
They spend evenings with family.
They have weekends.
Who is richer?
I don't know.
But I know which life I'd want to examine more closely.
Because wealth isn't only measured in dollars.
There is also time wealth.
And time is the one asset you cannot replenish.
You can earn another dollar.
You can rebuild a portfolio.
You can buy another house.
You cannot buy back yesterday afternoon.
Maybe the Goal Isn't to Maximize Income
Maybe the goal is to maximize the quality of your life per dollar earned.
That's different.
If an additional $20,000 requires sacrificing almost all of your free time, perhaps it's worth reconsidering.
If another $20,000 comes from a better-paying job that actually reduces your stress and improves your schedule, that's a different story.
The number alone doesn't tell us whether the decision is good.
The trade-off does.
That's why I don't believe personal finance should be reduced to:
“Make as much money as possible.”
I'd rather say:
Earn enough to create security. Save enough to create freedom. Invest enough to create options. And don't sacrifice your entire life chasing a number that keeps moving.
The Money Rules I Would Actually Follow
If I had to reduce this entire discussion to a few practical rules, they'd be simple.
First, increase your income when you reasonably can.
Don't romanticize being underpaid.
Learn valuable skills.
Negotiate.
Change jobs when appropriate.
Build a business if that's your path.
Second, don't allow every raise to become a lifestyle upgrade.
Keep part of every increase.
Third, build an emergency fund.
Financial security changes how you experience problems.
Fourth, eliminate expensive consumer debt.
High-interest debt can consume future income.
Fifth, invest consistently.
It doesn't have to start with thousands of dollars.
Even a simple $50-a-week investing strategy can build a powerful habit and, given enough time and reasonable long-term returns, potentially grow into substantial wealth.
Sixth, use tax-advantaged retirement accounts when appropriate.
A 401(k), Roth IRA, Traditional IRA, or other account may have different advantages depending on your circumstances.
Seventh, protect your time.
Don't automatically exchange every additional hour of your life for another dollar.
And finally:
Define enough.
Without that final step, the rest can become an endless race.
So, How Much Money Do You Actually Need?
I don't think the answer is $75,000.
I don't think it's $100,000.
I don't think it's $200,000.
I don't think there's a universal number.
The research doesn't justify that kind of certainty. The original study itself distinguished different dimensions of well-being, and the later collaboration showed that the relationship between income and emotional well-being is more complicated than the viral $75,000 headline suggests.
Your number depends on your life.
But I think there is a better way to find it.
Start with your essential expenses.
Then add a realistic amount for the life you actually enjoy.
Add retirement savings.
Add emergency savings.
Add insurance and other protection.
Add some room for unexpected expenses.
Then ask yourself:
What income gives me enough margin to do all of that without destroying my time, health, or relationships?
That's much more useful than chasing an arbitrary salary.
The Raise You Really Want Might Not Be a Raise
Maybe what you're really looking for isn't another $20,000.
Maybe you're looking for:
Less debt.
More savings.
A paid-off car.
A six-month emergency fund.
A funded retirement account.
A flexible schedule.
A job you don't hate.
The ability to take six weeks off.
The ability to say no.
The ability to walk away.
The ability to sleep at night.
Those things cost money.
But they also require something money can't manufacture by itself:
intentional decisions.
Money Can Buy Happiness—But That's Not the Whole Story
After looking at this research, I don't think the right conclusion is:
“Money can't buy happiness.”
That's too simplistic.
Money can absolutely improve your life.
It can remove financial stress.
It can improve your ability to deal with emergencies.
It can give you access to better choices.
It can create freedom.
It can make certain problems dramatically easier.
And for people struggling financially, more income can make an enormous difference.
But money has diminishing psychological returns.
A dollar that prevents a financial crisis is incredibly valuable.
A dollar that upgrades something you already have may be much less valuable.
And eventually, the question changes.
You stop asking:
“How can I make more?”
And start asking:
“What is more actually buying me?”
That might be the most important question in personal finance.
The Number on Your Paycheck Isn't the Number That Matters Most
If you're currently earning $40,000, don't read this and think you're doomed.
If you're earning $80,000, don't think you've reached some magical finish line.
If you're earning $150,000, don't assume another promotion will automatically make you happier.
And if you're earning $300,000, don't assume money has solved every problem.
Instead, look at your life.
Look at your debt.
Look at your savings.
Look at your investments.
Look at your monthly obligations.
Look at your health.
Look at your relationships.
Look at your time.
Look at how much control you have over your future.
Then ask:
Am I actually becoming freer as I earn more?
That's the measurement I'd pay attention to.
Because a bigger paycheck is useful.
But a bigger paycheck attached to a bigger lifestyle, bigger debt, longer hours, and less time isn't necessarily progress.
The ultimate purpose of money isn't to make the number in your bank account look impressive.
It's to make your life more resilient.
More flexible.
More secure.
More intentional.
And eventually, more free.
So yes, earn more if you can.
Save more.
Invest more.
Build your career.
Start the business.
Negotiate the raise.
Take the opportunity.
But don't make the mistake of believing that the next number on your paycheck is automatically going to fix what's missing in your life.
It might.
But it might not.
And if you're already financially secure, the next $20,000 might be far less valuable than an extra 20 hours with the people you love.
That's the part of the money conversation we don't talk about enough.
The goal isn't to make the biggest amount of money possible.
The goal is to build a life where your money gives you more control over the things that actually matter.
And if you can do that while investing even $50 a week, avoiding lifestyle inflation, eliminating expensive debt, and gradually increasing your savings rate, you may discover something more valuable than a bigger paycheck.
You may discover that you finally have enough.
— Suman Jana | Simon Williams Office
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