Incidentally we were most happy when we have owned the least amount of stuff (we are trying to do 200 items per person or less in the next few years to declutter our life). Hoping more people can answer this questions. I dont think so. Being consistently happy is tough. Then again, I wasnt satisfied with just 100K either. The rate would kick in for single filers with income over $400,000, heads of household over $425,000, married joint filers over $450,000, and married separate filers over $225,000. Dont be jealous! Management consultants make about $85-100,000 their first full year etc. Sure, why not. Id have to say that the number doesnt matter as much as the life style. With that said the skill of working really hard and being goal oriented will get you further. The assumption is the sole provider is working full-time (2080 hours per year). So damn hard. They are afree online platform which aggregates all your financial accounts in one place so you can see where you can optimize. Alaska and Hawaii differ from the other 48 states + DC. The row under Household Size 1 shows how much a person would make working a minimum wage job at $7.25 $15/hour. Thanks. Its sad that this recession has created so many 20-something year old and maybe even 30-something year old unproductive members of society. The Greutmans, who live in upstate New York . Highlighting elected officials that make poor choices seems to do next to nothing as elections, rightly or wrongly (mostly wrongly) are chiefly determined by other things and our too many of our career politicians are shameless and become more so every year as they take further notice of how apathetic the voters are about their spending. Not bad! Related: Why Some Households Need to Earn $300,000 To Live A Middle Class Lifestyle Today, You might be interested in this newer study: https://www.verywellmind.com/happiness-doesn-t-top-out-at-usd75-000-study-says-5097098, A take on the original study: https://www.vox.com/2015/6/20/8815813/orange-is-the-new-black-piper-chapman-happiness-study. As a Chicago resident, I think its laughable that you double down on your argument by bringing up municipalities Chicago/Cook County/Illinois tax us at every possible turn, yet still dont have nearly enough money to cover annual budgets/outstanding debts. :), so why is the mortgage interest deduction on income capped at $1 million for couples? custodial Roth IRA for your child is a no-brainer, most working Americans don't pay federal income taxes, student loan forgiveness of $125,000 per person, accurately forecast my future investment income, Why Some Households Need to Earn $300,000 To Live A Middle Class Lifestyle Today, https://www.verywellmind.com/happiness-doesn-t-top-out-at-usd75-000-study-says-5097098, https://www.vox.com/2015/6/20/8815813/orange-is-the-new-black-piper-chapman-happiness-study, Single or married filing separately: $12,950. Curious, what is your reason for filing head of household? The affiliate marketing stuff? Nobody knows what savings are, but thats mostly because people barely make ends meet. How do you think it would affect your ideal income? Massachusetts - $139,154 per family. Are you just going to let unlucky people starve and die in the street? With that being said, I dont want to derail the conversation. I am lucky enough to be able to support him even though it takes from other goals and dreams. That is funny! Apple and Google pay their incoming class $65,000 base for example.. and therefore every single other major tech/internet firm does as well! Earning 100K while you dont feel like working would be the magic number for me. Upon closer review of the long-term capital gains tax rates, the ideal passive income amount is up to $517,200. Lifting the SALT cap would be massive tax cut for rich. Why would I write this otherwise? District of Columbia - $173,874 per family. Great article. I took 8 weeks off this year, save about $85,000 in cash thanks to work, and I love work! Thesis seems flawed. In Florida, per the calculator, a 96% income percentile is about $300,000. Your blog lauds achieving early wealth as a means of achieving autonomy, which is obviously smart, though if you want to be truly helpful to others that dont have the same path aspiring doctors, lawyers, professors, early parents, entrepreneurs, divorcees and others that defer the rewards for a higher, later, or different type of payout, as well as the average joe, there should be some emphasis on balancing the autonomy with seeking excellence in what you do, and feeling a sense of understanding, companionship and empathy. It then compounds tax-free and gets to be withdrawn tax-free. Lets skewer the rich and take em for all they got! Most people wont, in high school, say that theyre going to go into finance or engineering because they can make an extra $15,000 out of school. Hi, somehow I cannot agree with that because its a pure generalization and generalizing about stuff like that is just not fair. That's kinda silly and totally presumptuous you sexist pigs. But I believe that's BS. A 20% down payment is ideal to lower your monthly payment, avoid private mortgage insurance and increase your affordability. Totally agree with the rest. Remember, the government has your best interests at heart. Brand yourself online, connect with like-minded people, find new consulting gigs, and potentially make a good amount of income online one day by selling your product or recommending other great products. Indeed. Isnt it plain obvious that its not a matter of smartness to choose your major. Better to educate people on the proper response (which is lift yourself up and put yourself in a better situation) though I realize it is somewhat of an uphill battle. Do you expect one spouse to make nothing or a fraction of the other spouse's income once they get together? I dont exactly know what the ideal income is for happiness, but I do know that if you spend more than you make, youre screwed. I suggest people to work accordingly to what they believe as well. Powell, I actually run two web apps Im a software developer who has created a number of popular code libraries which you probably use every single day. The Ideal House Size And Layout To Raise A Family - Financial Samurai The sweet spot income level looks to be around 300% up to 400% of FPL to live comfortably and earn subsidies. If she were smarter than you she either would have had a plan to make money coming out of college or chosen a major that would support ANY kind of lifestyle. Yet, because we make more than 400% of FPL, we get zero subsidies and have to pay more to subsidies those who make less. What a response. The income is high enough to save for retirement, own a house, vacation, and raise children. Still a fan however. This is such a broad question that I dont believe there is a single answer. I didn't love the money that much. If after those adjustments I am at $340,100 as married filing jointly I am one happy person. It takes into account all the deductions and credits. To me, taxing only the rich, creates a dependency relationship for the rest of the country on the rich. Not everyone can do that, you still need the doctors, lawyers, teachers, etc who cannot start a side hustle. When my husband and I sit and stare at the stars, and dream about making the big bucks, we always cap it with the caveat as long as we dont make more than $200 K. Thats our inside joke. I am not sure happiness can be directly related to money. Here's The Budget For A Family Of 6 Living On $59,000 A Year For the longest time, I thought the government was sexist because they don't provide an equal amount of deductions or leeway once a couple gets married. I wish you the best and look forward to more of your insights! The remaining four percent of the benefit of removing the cap would go the middle class (i.e. 50/30/20 Budget Calculator - NerdWallet Glad to hear the gift tax exemption has finally gone up though. Its a useful post. However, I understand that not everybody is able-bodied to be able to work that many hours for 50 weeks a year. It's funny, but in 2023, professor Daniel Kahneman who won the Nobel Prize in Economics, and who came up with the $75,000 threshold, finally admitted that $500,000 is the ideal income where happiness no longer increases. To make math easier, here are the various income figures by household size for the 2019 FPL levels. My goal is to make 6 figures by working 30 hours per week. My records show I spent just under $1500 that month. On the contrary, I was encouraged to excel in arts, music, languages, you name it, but nothing else. Then when you take into the factors you mentioned above such as cost of living in your city, there is no magical number. Even if you are nowhere close the Federal Poverty Level, it's always a good idea to know what they are just in case your finances change. 1. If so, can you share some details on how that works? Statements like Paying taxes is good for society are so silly that everything you say can be safely ignored. Any good student from a good university can graduate college and make $65,000-$75,000 as a 22 years old if they want to. Welcome to my site. Can you specifically highlight where I am complaining? But remember, your IRS Form 709 must reflect your option to take the five-year election. MN has the 4th highest income tax rates in the country, and they lost $997M of taxable base in 2020, and the average income of the taxpayer moving(mostly to AZ and FL) was $210k annually. The annual adjustments reflect changes to theConsumer Price Index(CPI), which is the main measure for inflation. Maybe its b/c I love working so much? Just out of curiosity, you mention red states where people are leaving in droves. Thnx, Sam. This map shows the minimum amount necessary to meet basic needs for a single parent with one child without relying on outside help, including factors such as housing, food, child care and health. Is it good when that tax money is spent on dropping bombs on innocent families in the middle east? https://www.pnas.org/content/pnas/early/2010/08/27/1011492107.full.pdf, https://www.guardian.co.uk/lifeandstyle/2012/feb/01/top-five-regrets-of-the-dying, this page that talks about Personal Capital, https://www.youtube.com/watch?v=XgRlrBl-7Yg, https://businessinnovation.berkeley.edu/WilliamsonSeminar/ederer100109.pdf. As such, one can then optimize their lives better if they dont absolutely love or at least really like what they do. If successful, the highest marginal income tax rate would increase from 37% to 39.6%. Lets get back to the main point about this administration hating rich people. I think theres truth in that. Nobody said you arent happy mate. Sam is currently focused on investing in private real estate with, The Real Ideal Income For Maximum Happiness. I dont know how anyone can live in any circumstance with the amount he receives. People just choose to want to study and do what they want, and money is secondary. Fantastic information. A moderate grocery budget will run you: Weekly Grocery Cost $ 0.00 Monthly Grocery Cost $ 0.00 What kind of spender are you? I welcome comments, long and short. We can say Modified Adjusted Gross Income, which may include after standard deductions. What if your W-2 household income on avg btw 800k to 1.2 million. A Bronze plan probably would save us $600+ a month. I am a new and very much enjoying reading your posts. Many people trade off the autonomy for these other drivers, and it can be cold and alarmist to just look at hard numbers without appreciating the other goals. Shes much smarter than I am, I just happened to choose the right major. This kind of income is a blessing and if Im understanding what you are saying I should try to make less to pay the least amount of taxes possible? I also write how I think paying 25% is the optimum overall effective tax rate. It hit me the other day that maybe the government is benevolent and not a bunch of self serving, two-faced, power hungry crooks. Thanks for this post! DISCLAIMER: Financial Samurai exists to thought provoke and learn from the community. Most people just complain, but do NOTHING about their situation!
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