The price is right!

[LogGrad98]

Or maybe better, what income is right?

Ok so my boss and I had this conversation recently. We are both making enough money to be in a, let's just say higher tax bracket. And we discussed at what income level or what kind of raise would we need to feel like we were actually able to live a different life-style. He said he would need to be in the 300k range or higher to really take a step-change in lifestyle, or where he would feel it more than just buying extra stuff or using credit cards a little less. For example he recently took his entire family to Cancun and flew them all first class, and he is not what I would consider rich. My thoughts were more along the line of percentages. If my income went up by 50% I would feel it for sure, as most would, but it would realistically be more the difference between driving better cars and having nicer things more than like retiring early or hiring a live-in maid or something.

So what do you think? I have included both percentage increases to income and income groupings and you can choose more than one, but I have kept it anonymous in hopes people will answer somewhat truthfully. How much more money would you need to really have it affect your lifestyle?


To clarify, choose from the following:

You would need X to feel it in your lifestyle:

any up to 50% raise in income
50 % to double current income
2X to triple current income
4-5X current income
more than 5X current income

or in real dollars

increase your income to one of these brackets to really feel a change in your standard of living:

up to 100k
100k to 200k
200k to 300k
300k to 500k
more than 500k


I chose 2x to triple my current income is what I would need to really feel it in my day to day life more than just buying more or nicer things.

 

[JazzGal]

I make so little and live so simply that any change in income changes my lifestyle (stupid poor health). I would live significantly better with a 50% raise. I can't even envision anything more than that.

 

[ONE LOVE]

100-200k for me. I'm single so I don't need much anyway.

 

[Keefe]

Too many variables to answer this precisely. How many kids does one have? Debt? In what part of the country do they live?

That said, I'll answer. Mine would be 50% to double current income. I almost chose the 2x+ though. This would allow us to save so much per month that college funds would be plentiful for our children when they reach that age and we would have enough to retire at a youngish age, living a very, very comfortable lifestyle until we die, with no worries about insane future healthcare costs and such.

 

[franklin]

I'm with you Log. The difference between making $60k and $90k is driving a brand new base model compact car vs a well equipped mid-size, a huge data plan on your cell phone vs going without, cooking at home cheaper vs. eating out, and a larger house.

Go to $120k, same thing except now you never consider driving instead of flying for that ten hour vacation drive.

$160k, maybe you start buying your own golf cart and going a lot more. Maybe a Harley and a Corvette.

$200k, maybe add a motorhome instead of the tow behind trailer. Maybe a $75k ski boat instead of the slightly used $25k one that does the same job.

The quality may change gradually but at the end of the day you can pretty much have exactly the same on $60k as you can on $200k if you want to. The bottom end is where it gets tough as living day-to-day.

 

[b_line]

If I doubled my salary, I'd have a significant change of pace.

I did increase my salary by 50% a couple years ago, and that changed our lives a lot by simply being able to pay off all debt excluding a home. If I doubled my current salary, I'd be able to pay off a home within three years while maximizing my contributions to mine and my wife's IRA accounts.

 

[b_line]

If I doubled my salary, I'd have a significant change of pace.

I did increase my salary by 50% a couple years ago, and that changed our lives a lot by simply being able to pay off all debt excluding a home. If I doubled my current salary, I'd be able to pay off a home within three years while maximizing my contributions to mine and my wife's IRA accounts.

The option I picked for 50% to double is basically the same as the 100-200k option for me. I think, unless I am doing the math wrong.

 

[Rubashov]

I live fairly comfortably but I work long hours and I work nights, i'd be happier working say 3 or 4 nights a week, Monday to Thursday for example with weekends off for say 1200 Usd a week in my pocket. This isn't significantly more than I make, (I figure if I have more time off I will spend more money so i'll need a bump) but I don't get much time away from work. Lack of time is what has the biggest impact on my life.

 

[Ron Mexico]

Hmm, I am making 1/2 to a 1/3 of what I did a few years ago and still living about the same lifestyle. Although those cutbacks were to enjoy life more and my work more but I also had money kind of invested into my lifestyle.

This is a hard question to answer. Do I have to work more to make more money? If so then my lifestyle gets worse fast with increased money. If I dont have to work more and everything is the same except the amount of money I dont think anything would really change unless I made 3-4X more money so I guess ill answer that.

 

[b_line]

I'm all about making more money while working the same or less. That is what I am working towards right now.

 

[RandyForRubio]

I already don't have time to do anything, and I don't think that will ever change.

With that said, Frank crushed it. I'd do the same things, just with nicer stuff. Main thing is I would invest a lot more, otherwise I think my quality of life is great. Not much more I would do with more money.

 

[Dr. Jones]

$100k and you can have nice things and pay the bills.
$200k you can save some money and retire earlier.
$300k and you buy things you don't need and know it.

From there it requires a pretty healthy jump to make a difference.. multiple homes, etc.

 

[infection]

What if you have $400k in student loans?

 

[b_line]

What if you have $400k in student loans?

Then hopefully you're gonna be making $400k a year soon.

 

[LogGrad98]

I already don't have time to do anything, and I don't think that will ever change.

With that said, Frank crushed it. I'd do the same things, just with nicer stuff. Main thing is I would invest a lot more, otherwise I think my quality of life is great. Not much more I would do with more money.

So would you need 5X your current salary to really feel it, to live substantially differently than you do now? Or more?

 

[RandyForRubio]

So would you need 5X your current salary to really feel it, to live substantially differently than you do now? Or more?

I guess it depends on what you consider substantially different.

I could fly places instead of drive, and would probably own another vehicle. I wouldn't really do different things though, as far as activities.

 

[Elizah Huge]

I am going to graduate with an Associate Degree with zero debt thanks to a scholarship. I don't have any debt and only thing I have to worry about is paying regular bills + my car payment every month.

Having said that I don't make much money compared to a lot of people on this board (cost of living is low as **** here though).

I honesty would only need a 2x increase in income to really feel a difference.

Sent from my iPhone using JazzFanz

 

[RandyForRubio]

What'd you get a degree in?

 

[JAZZGASM]

Interesting question. Most people tend to spend as they earn, so it truly takes a ton of $$$ to see a lifestyle difference. Lock into a comfortable level and invest.

 

[Gameface]

What's the "happiness threshold," like $60k? Maybe a little more now. Anyway, it's kind of reasonable. At that point you can have hobbies, leisure pursuits, take vacations once in a while, eat at decent restaurants on occasion, etc. Beyond that I think it takes a lot to noticeably enhance your opportunities, and even then, none of it makes people "happier." Once you cross the "happiness threshold" your emotional state is up to you. Most people continue to be miserable pieces of ****.