You know how Denmark is one of the best countries to cycle in? How so many danes commute to work on a bike? Sure some it has to do with nice lanes and beating traffic, but a lot of it comes from 170ish % tax on cars. I own a car, but it is tiny one that I paid more for than most US cars.

Mostly you have fun by doing things that are cheaper - you might play a table top game rather than go to the cinema, or watch the movie at home; eating out happens of course, but it is typically much rarer than in the US.

The upside to happiness is that the downside is somewhat limited - if I end up with no money at all I can go to the city and get Kontanthjælp (cash assistance, though that is transferred to the persons bank account), which will be paid out so long as I don't have a job and participates in certain required things that is supposedly going to get me a job. Unemployment insurance is paid out for two years, and would be about 60% of my income. Of course we also have tax paid health care, but while that is okay for immediate crisis (I can get a heart attack right now, have somebody call an ambulance, spend two weeks in hospital, and paid them nothing) it sucks for chronic issues because you will end up being placed on a waiting list, which means you could end up getting your treatment six months from now.