When I just moved to US I made less than 30K in my first year and I did not feel poor. In fact I made more that year that both of my parents combined. I also remember seeing a happy family at a parking lot near Lincoln Park in Chicago. They did not speak any English and they were all posing in front of a brand-new, shining red Toyota Corolla, laughing and taking pictures. It was probably their first brand-new car, very possibly an unthinkable achievement among their friends and relatives left in whatever country they were from. I am sure they felt richer at that moment than Paul does now.
I would like to re-phrase Paul's though, assuming I got it right. To westerners, who are already born rich by most standards, money most likely mean the freedom of doing whatever they feel like doing. PG mentioned it in his essays as the only driving factor behind programmers trying to make money - to set themselves free to work on problems they enjoy.
Thing is, you don't have to be rich to work on something that makes your life exciting. Joining a startup that fits your needs is another way of not wasting 2/3rds of your life while @work.
My personal pet theory is that most people, given appropriate education and development, are pre-programmed to work on something they love. This is precisely why so many Hollywood style millionaires like rock and movie stars end up dependent on drugs facing alcohol problems, etc. They never had any creative nuclei in them and had been working simply to put food on the table. And when they end up with more food that they can swallow, they literally go nuts: wealth can be dangerous, even life-threatening to unprepared.
Having millions is different than living on a 30k income vs a 60k income.
Someone like him is in a position to do whatever he wants for a few years without worrying about rent, food, or any basic needs.
I've done it a few times, and I don't even have a college degree worth speaking of (community college, but that doesn't count). In fact, I've just come off of two years of doing so--Virtualmin, Inc. has recently become profitable enough to pay me a nice salary, but I lived for the first year completely without a salary, and the second on about $1000/month. I'd saved up for a year before knowing I'd be quitting contracting and working full-time on something cool. I did the same for my first company--decided I wanted to start a company, worked for six more months at my old position and then quit with about one year of runway in the bank.
The "basic needs" bar is actually much lower than most Americans think it is. You don't need cable, you don't need a $75/month cell phone plan, and you don't need a McMansion or a sweet apartment in the swish part of town. Hell, you probably don't even need a car, though I've considered living in a van and traveling the country (which really cuts down on rent--campgrounds run $6-$20/night, with discounted weekly rates)...I might even still do that at some point.
You don't have to be a millionaire to have the luxury to live your life as you choose. Sure, it's nice to know you never have to go get a real job again. But, if you live below your means, no matter what those means are, you're in a very flexible position.
Kinda like this guy.
Anyway, I am 27 and make twice what I did at my first post collage job and I still spend most of what I make. Back in collage a friend of mine went to school full time made ~10$ /hour and supported his wife and kid on that. I think he was happier then than I am now because he was going to make it to a better place. It's easy to assume you need have some life style to be happy but I think a reason for living is far more important than your income or your wealth.
But anyways, my main problem with your original article was that whenever someone tells people that you can't buy happiness, it seems that person is always well off. Maybe thats because they're the only people who would know for sure, but it seems a bit like me going to some third world country and saying, 'You know, living in America and not working in a factory for 14 hours a day really isn't all its cracked up to be.'
I imagine answers to this question vary wildly, but tend to cluster around 3 points: $0, something like my rough calculation, and some large-ish percentage of the GDP.
Mainly
- Spend more time with my wife (including doing some of the rest of these things together), when she's not working to achieve her goals
- Hack on several ideas that I have, work with/invest in interesting startups (what I would normally save or put into less risky investments)
Also
- Help my friends out of the rut
- Read more math, physics, sci-fi
- Learn to fly planes
- Keep my thumb on what's going on in the tech world via the web
- Build cool stuff: electronics, etc.
- Buy cool gadgets and hack on them
- Maybe some political stuff, EFF or atheist issues
- I like the OLPC project, I think they should work with American kids too.
- Pick up the piano and violin again, maybe travel a bit
- Say what I think more often
- Some normal leisure stuff now and then
Of course, this would be after 2 weeks of sitting around in awe that I had arrived at what I dreamed of as a teenager.
I can do many of these things in some capacity right now, but I can't really dig in to most of them. I do my current job in hopes of freeing up a half-of-my-waking-life time slice so I can, but that is definitely a gamble. Self-determination is an enticing thing.
I imagine that, even though I've done a fair share of it, there is some introspection to do when you arrive. I wish I had more time to think about this question. What's the view like from there?
[Just quoted - to upmod it individually.]
There is just very little doubt in my mind that the choice afforded by a nice passive income would help me do more things that make me happy.
Also, I hate Doritos. :-)
Know thyself, I guess.
I guess its not just money but the security that it brings.