The theme this week on the Retirement Quick Tips Podcast is: How Much Is Enough?

Today, I’m talking about the minimum income you need to be happy. A recent study published by Purdue suggests that you need about $105,000 of income in North America have high life satisfaction. In Oregon, where I live and cost of living is about a third higher than the rest of the country, you need about $136,000 to be happy. 

The study suggests that this is an ideal amount and that the law of diminishing returns applies and that more income above this level doesn’t make you happier. Sure you can take nicer vacations and afford a newer car and a bigger house, an important takeaway from this study is that there is an income level that is enough. 

Another study published by Princeton in 2010 found a similar result: there is an increase in happiness alongside annual income up to about $75,000 before it levels off. Adjusted for inflation and the 12 years that have passed, the $105,000 of income today is in that ballpark. 

So while happiness and income and the associated comforts and things that that income can buy goes up as income rises, some research suggests that it levels off at a certain point, which is important to recognize alongside the continued pressure for more more more. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance