If money doesn't make you happy, you probably aren't spending it right (2010) [pdf] • Hacker News Board

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#91

Post by memonkey » Mon, Nov 10, 2014, 5:19 PM UTC

beachstartup wrote: post #82

jacquesm wrote: post #35

Earlier quoted context omitted.

I agree with most of your decisions but: > Completely forget about the price tag when buying small-ticket things: a taxi ride, asking for an extra plate, an occasional flight, paying a round of drinks Needs a little asterisk, you're changing your lifestyle to one that you probably can not yet afford, be careful with that, these 'little things' really add up over time. Other than that: Congratulations :)

i completely disagree - he has a small but successful real estate business and has presumably close to or over $1M in assets. he definitely can afford a tax ride, an extra appetizer, or a flight somewhere without thinking about the implications of the cost. if not this guy, then who? do you have to be a billionaire before you can order an appetizer without guilt? i'll describe the lifestyle you probably can't afford…

I am honestly curious but is there a link or survey somewhere that says most HNers make/have money?

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#92

Post by jonnathanson » Mon, Nov 10, 2014, 5:28 PM UTC

memonkey wrote: post #91

beachstartup wrote: post #82

Earlier quoted context omitted.

i completely disagree - he has a small but successful real estate business and has presumably close to or over $1M in assets. he definitely can afford a tax ride, an extra appetizer, or a flight somewhere without thinking about the implications of the cost. if not this guy, then who? do you have to be a billionaire before you can order an appetizer without guilt? i'll describe the lifestyle you probably can't afford…

I am honestly curious but is there a link or survey somewhere that says most HNers make/have money?

There have been occasional polls, on topics such as salary, exit amounts, etc. People generally consider the results of these polls unreliable.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#93

Post by tormeh » Mon, Nov 10, 2014, 5:30 PM UTC

SamReidHughes wrote: post #78

tormeh wrote: post #62

Earlier quoted context omitted.

Actually not. Money increases happiness logarithmically. Of course, work may decrease happiness and there's an optimal work/money tradeoff involved, but the happiness payoff from money, per se, never stop.

Are you talking about reality here? Do you even have a meaningful way to quantify happiness (the one that you claim maps to a logarithmic relationship)?

Things like this: http://www.economist.com/blogs/graphicdetail/2013/05/daily-c...

The standard way to measure happiness seems to be to simply ask.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#94

Post by emotionalcode » Mon, Nov 10, 2014, 5:41 PM UTC

Retric wrote: post #68

emotionalcode wrote: post #50

Earlier quoted context omitted.

Experience: being a woman people have call beautiful; experiencing wondering whether I am persistently being evaluated on a superficial characteristic. We all can draw abstract lines in the sand and overgeneralize to have opinions and make points. It doesn't mean it tells the entire story, nor does it mean it's correct forever.

There are a lot of products and techniques that help people look more beautiful. However, at its core beauty relates to both age and heath and as such it's less superficial than is generally portrayed. Taking this back to buying experiences. IMO, there is basic expenses like buying gas or shampoo which don’t cheapen things. But the further extremes you go like plastic surgery or renting out a hotel not just a room yo…

You are judging this from the criteria of an average person living and spending their money.

Plastic surgery might help someone with a physical deformity, and renting out a hotel might be a necessity for a scientific conference.

You can't judge the value of a dollar based on the assumption that there exists an average person that spends it. For every frivolous act of spending you can conceive of, I can respond with a similar 'well intentioned / ethically sanctioned' act of spending, from a perspective you might not have been aware of, given you likely don't have perfect information about the state of everything in existence.

It depends on who you think you are to judge how another person lives their life. What you consider essential and what you can live without is not the absolute for everyone.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#95

Post by ethbro » Mon, Nov 10, 2014, 5:45 PM UTC

jmagoon wrote: post #79

clavalle wrote: post #56

Earlier quoted context omitted.

>More money leads in almost all people to artificial value, short term superficial happiness, degradation of the soul. I could not disagree more. In the vast majority of cases, money leads to less misery. Then you just lead your life without the obsessive material thoughts so many struggle with. I do agree with your last point, though, that once you reach a certain level of stability, you should focus on either reduc…

It's strange to me that people think having or not having money is directly tied to obsessing over money. These are two separate things that aren't actually connected--the number in your bank account and the state of your mind. You can have $1bn and be totally miserable and miserly, you can have .15 and be generous and happy, and vice versa.

With the caveat that, in situations of poverty below a certain level requires giving money more consideration.

If you have $100 in the bank on a good day, then your trips to the grocery store play out a lot differently than someone who has even $1,000 in the bank.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#96

Post by inanutshellus » Mon, Nov 10, 2014, 5:48 PM UTC

msrpotus wrote: post #53

michokest wrote: post #40

Earlier quoted context omitted.

True :) that probably deserves clarification: I made a clear separation between "spending money" (rent, travels, food, leisure) and "investment money". Anything spent is either an investment, where I try to keep returns over 5% yearly, or just everyday stuff. I've found that everyday stuff ends up not being very different than my previous spending levels. EDIT: I also live outside the Bay Area, which definitely helps…

Explains how you can buy so much property with just $1m.

"just $1m." ... I can't wait 'til I can say that with a straight face.

...

Granted, it'll probably be when candy bars are $20@. /Le Sigh/

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#97

Post by smackfu » Mon, Nov 10, 2014, 5:53 PM UTC

beachstartup wrote: post #82

jacquesm wrote: post #35

Earlier quoted context omitted.

I agree with most of your decisions but: > Completely forget about the price tag when buying small-ticket things: a taxi ride, asking for an extra plate, an occasional flight, paying a round of drinks Needs a little asterisk, you're changing your lifestyle to one that you probably can not yet afford, be careful with that, these 'little things' really add up over time. Other than that: Congratulations :)

i completely disagree - he has a small but successful real estate business and has presumably close to or over $1M in assets. he definitely can afford a tax ride, an extra appetizer, or a flight somewhere without thinking about the implications of the cost. if not this guy, then who? do you have to be a billionaire before you can order an appetizer without guilt? i'll describe the lifestyle you probably can't afford…

OTOH, I agree that it is very easy to double your discretionary spending if you stop caring about "little things". And that can really add up over time. You spend $50 each day, that's $1500 a month, $18,000 a year. A decent salary can certainly support that level of spending, but not so much if you double it.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#98

Post by themagician » Mon, Nov 10, 2014, 6:02 PM UTC

I used to have money. When I got divorced I decided I would let my wife have it all. It was mostly hers to begin with, so it wasn't some great act of generosity. She walked away with somewhere around $2MM in liquidity. I walked away with about $10,000.

It's really made very little difference. Money makes some things easier, but I wouldn't associate that with happy. They are two separate things. There was a time when I thought money would make me happy, and I think there was a time where maybe it did, but there was a realization that my "happiness" wasn't my own. I don't even know if that makes sense to anyone but me, but that's the only way I can articulate it. I was happy because I thought I should be happy with all the stuff and "freedom", but at the end of the day I didn't really care about those things.

Now I'm in this place, this awkward state, where money can't buy any of the things I want. It's a confusing place to be because the world doesn't really operate that way. I wish money made me happy. That would make everything much easier.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#99

Post by wtracy » Mon, Nov 10, 2014, 6:05 PM UTC

jacquesm wrote: post #35

michokest wrote: post #26

Last year I sold some stock from my last startup, a little over $1m after taxes, and I can say it's definitely changed things for the better. In this period of time, I have been able to: - Quit my founder position at that startup (thus avoiding potentially being tied to vesting or retention clauses, in case of an acquisition) - Own my house, and invest in a few other apartments, which turned into a little side busine…

I agree with most of your decisions but: > Completely forget about the price tag when buying small-ticket things: a taxi ride, asking for an extra plate, an occasional flight, paying a round of drinks Needs a little asterisk, you're changing your lifestyle to one that you probably can not yet afford, be careful with that, these 'little things' really add up over time. Other than that: Congratulations :)

It is a valid strategy to not sweat the individual purchases, but watch your bank account and track your overall burn rate, then adjust if necessary.

Re: If money doesn't make you happy, you probably aren't spending it right (2010) [pdf]

#100

Post by [deleted] » Mon, Nov 10, 2014, 6:12 PM UTC

SamReidHughes wrote: post #78

tormeh wrote: post #62

Earlier quoted context omitted.

Actually not. Money increases happiness logarithmically. Of course, work may decrease happiness and there's an optimal work/money tradeoff involved, but the happiness payoff from money, per se, never stop.

Are you talking about reality here? Do you even have a meaningful way to quantify happiness (the one that you claim maps to a logarithmic relationship)?

[deleted]