How Much Money Do We Need to Be Happy?
Money doesn’t buy happiness, but having more of it can certainly make life a little easier. Money that exceeds basic needs can provide opportunities, experiences, and a sense of comfort. But how much do we really need to feel happy?
A recent survey found that millennials—those born between 1981 and 1996—believe they need to earn $525,000 annually to feel happy. With the national median income for this generation sitting at $81,000, this raises a few important questions. Why is there such a significant gap between perception and reality? Why do so many feel like they need so much more? And perhaps most importantly, what does “happiness” mean in this context?
According to the study, financial happiness isn’t just about income. It’s tied to independence, resilience, and generosity: not needing to rely on others, being able to handle financial challenges, and supporting loved ones. Interestingly, 62% of respondents also linked happiness to enjoying small luxuries like daily coffees—(this is not my editorializing - this is what people said in the study!).
No matter your income, there are ways to cultivate financial happiness right now. Here are six strategies to help you feel more content and in control of your finances:
1. Practice Gratitude
It might sound cliché, but gratitude is a game-changer. Recently, when I was overwhelmed with a situation, a friend suggested starting a gratitude journal. You know what? I started to reflect on all the good in my life. There is so much good. The little luxuries don’t matter when we can appreciate all the luxury that life already offers.
2. Don’t Compare Yourself to Others
Comparison is the thief of joy. My mom used to say, “Compare and despair,” and she wasn’t wrong. Focus on your own journey and what you already have. Remember, outward appearances rarely tell the whole story.
3. Step Away from Social Media
Social media can create an endless loop of comparison. After rejoining social media recently, I felt an immediate pressure to want more—like the espresso machine that seems to haunt my ads. If scrolling leaves you feeling inadequate, consider taking a break.
4. Create a list of non-financial luxuries that bring you joy
Hiking, staying in bed longer on the weekend, reading a book, slow cooking a dinner, watching your favorite tv show, spending time with someone you love - create a list of activities that make you feel happy so that when you feel like spending money on something that is not in your financial plan, you can instead replace that desire with something that brings you equal joy but that has no financial repercussions.
5. Define Happiness on Your Terms
What does financial happiness mean to you? It’s deeply personal and shaped by your values. Take some time to define it, listing the ways money influences what matters most to you.
6. Make a Financial Plan
The best way to align your money with your values is through a clear financial plan. Whether you call it a budget or something else, the goal is to intentionally direct your spending toward what truly brings you joy and fulfillment.
While there’s no one-size-fits-all answer to how much money brings happiness, it’s clear that true financial contentment comes from how we manage and perceive what we have. By practicing gratitude, avoiding comparison, defining personal values, and creating a thoughtful financial plan, you can achieve financial happiness—no matter your income. After all, happiness isn’t found in a specific number; it’s built through intentional choices that align with your unique vision of a fulfilling life.
As your inbox fills with sales emails these next 6 weeks (and especially this week), think about whether the items being offered really help you achieve financial happiness. Before opening any emails, make a list of things you need. If there is something for sale that was on your list and it fits within your financial plan, then you might get a good deal. But if the items appearing in your inbox are not on your financial plan, then the best course of action is to simply delete the emails so that you aren’t tempted.