Want to be happy? The Smithsonian says....

https://www.smithsonianmag.com/history/proliferation-happiness-180968468/?utm_source=smithsoniandaily&utm_medium=email&utm_campaign=20180301-daily-responsive&spMailingID=33457766&spUserID=NjAyNjk4NjM5NTMwS0&spJobID=1241604162&spReportId=MTI0MTYwNDE2MgS2

I think that $70K/year is relative to where you live. $70K in the DC Metro area doesn't get you very far and leaves very little to save or put into a retirement account. An average single-family house in a decent neighborhood in the suburbs is going to be $500K+ on the cheaper side. As a couple making double that amount, I could see it being much more doable. Interestingly, if you take the $70K and multiple it by the cost of living index for this area, which is around 40% higher than the national average, you'd be at about $100K, which I agree is our sweet spot. Unfortunately, there are a lot of people out there who are terrible with money and still feeling the pinch at that level of income and higher. It's disgusting how stupid people can be with their finances.

Now if I was making $70K where my extended family lives in Wisconsin, I'd definitely be baller. :mrgreen:

Yes, you are correct about $70,000 being too much or too little, depending on where you live. And, salaries adjust to fit the area.

Many, many years ago I was in charge of hiring and firing all of the clerical personnel for a 100 person office. Our salaries in downtown Chicago were way below the same job's salary in NY, and way above what someone in one of our branches (Milwaukee; Minneapolis, etc. ) earned. Their cost of living was different than ours.

Still, no matter where you live, it is what people do with the money that finally determines how well they live and retire.

I had customers who never made over $40,000 a year who had everything that they wanted, and others who made $150,000.00 annually who were out of money all of the time.

Some people understand "Pay yourself first", by saving...and others who believe in "spend until you drop".

rich

I agree, it all depends on where you live as far as the salary or hourly rate you get. I'm a firm believer in spending cash instead of using a credit card. I refuse to carry debt that isn't a necessity too. I think the single most important thing young people starting out should do is pay cash for a car they can afford and get rid of any student loans they've accrued first and foremost. Life gets a whole lot easier without debt hanging around your neck but a lot of folks feel they have to keep up with the 'Jones's' and end up in trouble for it. I can't count the number of times I had seen new hires go out and charge a bunch of stuff to their credit cards, buy a house, car, etc. only to lose their job later because they didn't work out for what ever reason. It's really unfortunate.

That is very unfortunate.
We all just need self control. I was in debt as a young adult, as I had to pay for my college with a credit card and by working. As soon as I could pay that off, I never went back into credit card debt. Being someone who is responsible and frugal, I've found credit cards to be the best thing for me. I take advantage of all the deals and offers. My Costco Visa being my current favorite. 4% back on all gas purchases, 3% at restaurants and travel, 2% at Costco, and 1% everywhere else. The important part is that I ALWAYS pay my bill in full. My other trick is to pay bills with my card. I basically got a 1% discount on my cell phone bill every month by paying with the card. I was going to have to spend that money anyway, so why not funnel it through the card. Every little bit helps and doing that put an extra $500 directly back into my pocket last year. While this isn't good for everyone...like some members of my family...it works very well for me.

I use credit cards with rewards. If I can get a % off using the credit card for a particular purchase I will use that card for that purchase. Then I will pay it off monthly. If the money was going out anyway you might as well use a card that gives you something in return. I use Quicken and plan for my outgoing bills to be deducted for the amount of expenditure for that card at the end of the billing cycle. I have all of my regular monthly bills set up on the same principle. I keep my monthly billing situation in Quicken planned for the next three to four months. Simple and works like a charm.

You guys are way more organized than I am. At the same time, I haven't paid a cent in interest on a credit card (nor much of anything else) in 20/25 years.

Just last week, Amazon (which I use a lot) offered 5% off on any purchase there, and xx% off on gas, restaurants etc.. I don't need, nor want, any credit cards other than the ones that I get via my brokerage/banking accounts.

But, free money is free money. So, I got an Amazon card.

I immediately set it up so that it is paid by the bank where I keep some money, so there should NEVER be any interest charges. I don't have to look, or plan, or predict what the balance will be. I review every transaction shortly after I make them, and at the end of the month.

Candidly, I didn't know that I could automate the CC payments until my former secretary ran me through the process. Works out for me!

I do agree with using a card IF you have the self control they require. I have them but I don't use them very often, usually on a trip when I don't want to carry cash on me. It's always a lot easier to call and have a stop placed on them if stolen or lost, you can't do that with cash. Cash back would be nice too.

Because of the perks we use credit cards a lot but pay them off religiously. I think it is tougher when you are young and starting out. I tried hard to convince the kids that more happiness comes from good friends and experiences than from "things". I also taught them to avoid the "on sale" trap. If something costing $300 is on sale for $100, it isn't important to me that I'm saving $200. What is important is that I'm spending $100.

Most important. Want to be happy? Stay away from people who are not happy.

I used to have credit card debt real bad. I stopped using the credit cards and paid them off. I do not have a credit card now and have not had one for the last ten years. I found that if I don't have the cash to pay for something then I really don't need that something.