It’s a common misconception but if you are making enough to live comfortably, usually somewhere between $40,000 and $80,000 per year depending on where you live and how many people you are supporting—making more money won’t make you happy. Here are a few reasons why.
More Becomes The Goal
Most of us have a tendency to live to (or above) our means. So, if your dream of doubling your income were to come true—you may end up doubling your expenses, and your debt. Bigger house, nicer car, more expensive clothing, etc. these things will provide instant gratification and short-term happiness, but it often becomes more about the things and what we believe they say about us or our level of success than it does about genuine happiness.
Money Can Complicate Things
As the saying goes “mo’ money mo’ problems”. Let’s say you were to win the lottery. Odds are everyone you know would come running for a loan or would be jealous of your win. Everyone includes family, friends, and complete strangers wanting to pitch investments or sell you things. This is one of the reasons why most lottery winners go broke in 3 to 5 years, often having to claim bankruptcy.
Happiness Comes From Within
Instead of looking for outside things you must find your happiness from within—within yourself and within the way you choose to invest your time. More time doing what is meaningful, authentic and fun—and less time doing what stresses you out.
As your salary increases prioritize getting 3 to 6 months of savings in the bank and paying off debt. This will go further in reducing financial stress than the short-term happiness of purchasing things. But yes, do budget in a bit to splurge and treat yourself!