How much money does one REALLY need?

[cookiecutter]

I am curious. I am in the middle of major choices, career choices, the whole nine yards that accompanies the life of anyone in their 20s. I have considered many job routes, many salary options, interview those who work in different fields and done some job shadowing. I am not a genius on the subject (if I were I would probably have already figured out what I would like to do) but I am not without a little background. My question in one of opinion. I have researched a little about salaries and what will get someone by in our times, I also am aware that "how much money do you really need" will be greatly influences by one's own desires and the things they personally feel are worth laying down money for - and it is that type of unique perspective that I am looking for. So for you personally, how much money does one really need? Lets shoot for maybe gross annual income..40,000; 50,000 ;70,000; 400,000...?

[uintahiker]

Kinda like asking someone how many guns they need. As much as you can get!

That said- median household income in the US is about $48k.

Career choices can be pretty heady stuff.
Here's a few things to consider-
Job activities- what would you be doing all day & all week?
Long term stability/viability of job.
Upward mobility of job- are there career advancement opportunities?
Geographic location of job. For example- if you're a stock market guru, you're most likely confined to living in New York.
Time off & benefits. Are you expected to work 60 hours a week or 40?

Stuff like that. It's only stuff that you can answer, but asking questions sure helps in the decision making process!

[accadacca]

I'll take any of the extra money that you don't need.

I have heard...that people end up spending what they make no matter what that number is and then want more. That's why this nation is broke! Some will say that quality of life is a factor in salary.

For me its about living in a nice neighborhood with good schools for my kids and a safe environment. That's #1 and I'll sacrifice any other "wants" to make sure I retain that #1. I've had to work very hard to achieve that.

[Don]

More. Always more.

[Deathcricket]

There are two ways, IMO, to go about this.

1. Be very happy at your job and screw how much money you make. If you are passionate about something and love it the money will follow. Find what appeals to you and pursue it with all your heart. Money cannot buy happiness.

2. Work sucks, that's why they call it work. Unless you are extremely passionate about something and willing to pursue it to the ends of the earth, just go for making as much money as you can. Give yourself an honest assessment, and again being honest is the key here. Do you suck at math? Are you good at history? Are you able to retain factual data? Do you have a large frame and perhaps better suited to physical type labor? Are you above average in looks and perhaps better suited to sales? Are you quick witted? Can you think on your feet? Are you comfortable taking risks?

So if you go option one, screw who cares how much money you make. but buckle down and work your booty off perfecting your skills. There are hundreds perhaps just like you pursuing their dream and you need to rise above them and standout. Or you will absolutely fail. Do not take vacations, do not relax, find fulfillment in your work. The money will come later when you stand out.

If you go option 2 shoot for at least 60k a year at first, I would say by the time you turn 25. It's a good start, It's above average, you can live comfortably and not struggle to make ends meet. You can drive a decent car or a POS car and lots of toys, and have a nice buffer of savings if you find yourself unemployed or want to take a nice vacation. And take lots of vacations! Bang some chicks on a beach in Mexico. Wathc the sunrise on an isle in greece. Go skinny dipping in Belize. You are young, works sucks right? Enjoy yourself that way. Have lots of hobbies, find fulfillment in those. My time spent young and doing crazy stuff is some of the best memories I have. I went option 2 in case you didn't know. :)

[Audilard]

It's all about "wants" vs. "needs", getting your priorities in line with your goals, and discovering what really makes you happy. There is a different answer for everyone.

[Scott Card]

To answer the question, apparently none. Just break in to cabins in southern utah.

The answer is -- depends. For me, that answer is not mine alone. Being married and having kids changes "my" answer. I could get by on very little. But as a dad and husband, my money needs are greater.

Seems you need to set priorities and then the answer will be fairly easy to figure out. Do you want a big house? Lots of toys and trucks and snow machines? Must you have the Italian suit? Will you feel less of a man if your house, cabin or vacation is not as big as the Jones'? What makes you happiest? As I get older, money and stuff has become less and less important and my wife, kids and relationships with other people have become much, much more important. I used to have these "I need this and that" goals. Once I had the item, I had it. Then what? The happiness that came from accumulation of stuff was fleeting. Once I got the "best" tent or truck and I used it, it was then used. Then of course, a new model would come out that was better. Do you have to have the latest greatest of things? You will need more money. For me, my family is what I need, money is used to take care of them and to be able to provide opportunities and do fun stuff together. I also set aside money to help others.

Another part of the discussion should be debt. You need a lot less money when you have no debt. And you are a lot happier when you have little or no debt. Earning money w/o debt is a lot more fun to earn when you have the freedom to use it how you please rather than having to pay creditors. What debt are you willing to get into? Can you afford it? Must you have "it" now, whatever "it" is and purchase it on credit or can you wait and save and pay cash? If you must have "it" now, you will need much more money to pay the debts than you would if you are patient and save and pay cash.

A few little tidbits to think about as you consider some big decisions.

[trackrunner]

if I could start over again I'd marry for money & work to pass time
[/thread]

[Iceaxe]

if I could start over again I'd marry for money & work to pass time

I always tell my daughters.... you can marry more money in a minute than you can make in a life time.

Another part of the discussion should be debt.

I believe history will one day look back on this period of time and consider the huge debt loads some folks carry as a form of slavery. I can't believe some people are dumb enough to give away 10 to 20% (or more) of their wage to cover interest each month, that is insane (at least to me it is).



As for the original question in this thread.... my short answer would be 100K a year will allow you to live a very comfortable life with few money issues if you are good at managing money. At that wage you can't be extravagant, but it allows you to live in a nice house, drive nice cars, pay for your kids college, put enough away for retirement, take a nice vacation every couple of years, not have a household disaster like a new roof on the house or transmission in the car cause you too much of a hiccup.

With that being said.... if you are bad at managing money no amount will save your butt. That is why you have all these professional athletes and lottery winners claiming bankruptcy soon after the money stream ends.

A good friend of mine was making 250K a year before the recession hit. He was one of those guys that spent money like a drunken sailor and really lived paycheck to paycheck. He is the type of guy you hear about on the news now. Was making 250K, is 50 years old, and has now lost everything... his job, his house, his boat, his snowmoblies, his motorhome, his retirement (which had very little in it), his wife, yada, yada... and he can't find a job that pays even 1/4 of what he was making.

People are not poor because they don't have money. People are poor because they don't know how to manage money.

[Rob L]

<snip> my short answer would be 100K a year will allow you to live a very comfortable life with few money issues if you are good at managing money. </snip>

I've managed on about 1/3 of that ($ for

[greyhair biker]

$100K is a nice round figure but I agree that if you can't control your spending it doesn't matter what you make. When I came up to surface from the mine I took a big cut in pay but we seem to be doing better on less than we were when I was making more plus, my wife decided to upgrade her job classifications to cement her career earning potential. We are empty nesters, we take off on more little 'trips' than we used to and we buy generally what we need went we want but we've had 30 or so years to learn what mistakes not to make as often.

[cookiecutter]

Thanks for all the responses! 100,000 has kind of been my idea, and many have shared the same. I have thought about turning my hobbies into a job, but for me the idea of making my hobbies work doesn't quite jive. As far as spending goes..I have always been a saver, often to my demise. It takes me quite a while to make purchases.

[Rob L]

Don't save too much, life is too short. Spend a bit and enjoy the short time you are here.

[Iceaxe]

I have always been a saver, often to my demise. It takes me quite a while to make purchases.

“The most powerful force in the universe is compound interest” - Albert Einstein

Nothing wrong with saving... ... just make sure you put the money to work for you.

[JONBOYLEMON]

100 k sure sounds exciting, but you will probably be disappointed if that is how you rate your career.

Do what you love, seriously, everyone says that, but its true, if you love it, you will excel, I am in construction and it SUCKS right now, but I love it and am able to earn more than almost all my other peers because I love it, and have figured out how to make good $ at it.

Also, I have never not been able to do something or buy something I really wanted at less than 100k a year and I have a family to support.

Also, the benifits package is a HUGE part of employment! Cant say that loud enough!

I have family that makes 10 times what I do, and enjoys life 10 times less than I do!

[Iceaxe]

[Rob L]

That hits the nail on the head.

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[mackman]

I think its $800 per day....

[MY T PIMP]

What ever is enough to have a place in Utah, Botswana, Argentina, New Zealand and Alaska. In my mind these are the hunting and fishing Mecas of the world. I believe I would have enough money if I could live and recreate in each of these places all year:) What an incredible notion, thanks for letting me dream.

Sent from my T-Mobile myTouch 3G Slide using Tapatalk

[tmartenst]

I have heard...that people end up spending what they make no matter what that number is and then want more.

This has to be true. We've lived on ski bum check to check for 4 years and now contrast that with my wife and I both working decent jobs and damned if we don't find ways to spend that money. Some rules/ideals we follow: For us, no debt outside of mortgage, buy used wherever possible (definitely cars), splurge when necessary or when you feel like it (nice dinner, vacation, new toys, etc.).

We've thought about just trying to live on one salary and save the other just because we know we could live that way. I agree that you don't want to save too much. Live a happy life, just avoid too many material things and ask yourself if you really need things as you are ready to spend.

I have to learn to avoid http://www.slickdeals.net too. So dangerous!