Reaching this number will make you happier and healthier.
According to Yahoo, the number needed for life satisfaction if you live anywhere in North America is $105,000. You can see breakdowns for each state here. Life satisfaction includes emotional well-being and happiness.
Some people make much more than this recommended amount and are not satisfied because they are caught up in the rat race of consumerism. Where it is never enough and your expenses eventually exceed your income.
Keep in mind that once you pass a certain threshold of income there is no more happiness that can be added to your life with money. I would look at the state by state recommended income for life satisfaction in the link provided above.
Here are things that can be done to live within the life satisfaction number.
Increase your income
If you are making less than $105,000 then you need to find ways to increase your income. You can do that by asking for a raise or applying for a promotion. In order to ask for a raise you should prepare. Write down all of the tangible ways that you make your workplace better for it’s specific strategic plan. What systems have you created to make things easier and more efficient? How do you stand out? Present your supervisor with these facts.
If applying outside of your company, do your research about where you are applying to. Learn their mission and be prepared to show how you can support their bottom line.
Looking for a new job
Research the company you are applying to thoroughly. Apply to several places and negotiate for the income you want before accepting the job. Prior to accepting a job offer is the best time to negotiate your salary. At this point the company has already invested a lot of time and money on you. They don’t want to start over. It will be harder to negotiate for a raise once you are an employee.
If you have job offers that you are happy with you can go back with that to your job. Do not lie to your employer if you do not have any offers.
Starting a business
Have you ever dreamed of being self-employed? Do those dreams keep coming back to you at different times in your life? Well I’m here to say, they will never stop creeping into your life over and over again so you might as well make a plan and go for it. If things go well this can produce a great income for your family.
Be smart at the beginning. Start your business out of your home, open social media accounts and put yourself out there to see if there is interest. Keep your day job as well while you are in the beginning phases of your business (first year or two). Your 9-5 will help fund your side hustle. Tell your friends and family what you are working on, let them help you if they can. I cannot stress enough that you do not need a perfect business plan. A simple reflection on these four questions is enough to start. These questions stem from the Japanese concept called Ikigai. Ikigai focuses on helping you discover your life’s purpose, passion and work. Do this reflection on paper and start drawing out your plan with specific time lines attached.
- What do I love to do?
- What is needed in the world?
- What can I be paid for?
- What am I good at?
Some people make a lot more than the number recommended yet they are not satisfied with life at all because of their lack of money management skills. Which proves that more money after a certain point stops contributing to one’s happiness. What contributes to one’s happiness is spending on things that bring you the most joy and less on everything else.
A budget is a written plan that tells you how you are going to spend your money. You make a list of all of your expenses, put them under categories and assign numbers to each based on your average spending for each item. You will have to review your bank or credit card statements to get the averages.
Strive to reach or get close to the life satisfaction number. Your happiness and wellbeing depend on it.