Happy people tend to live well below their means

[jeffrey]

So, what percent of the millionaires who live in homes valued at under $400,000 are happy? More than 9 in 10 (91 percent) indicate that they are extremely satisfied with life. Yet only one in twenty have a wine collection. Happy people tend to live well below their means. I have found this to be the case in all of the studies I have conducted.

Most of the people who make up this low profile millionaire segment never earned very high incomes. In fact, their median household annual realized income (from all sources) of this group was $113,334 at the time they first reached millionaire status.

In regards to millionaires who live in homes valued under $400,000, ninety-two percent are married. In 90 percent of the cases, the male head of household is the major breadwinner. Fully 62 percent of those who are married have never been divorced. The median value of their home is $293,214. Their median realized household income from all sources in 2006 was $152,193 or more than one-half the current value of their home...

The Low Profile Millionaire Next Door

[kork13]

Makes sense... But I think it's a question of "chicken or the egg" -- do happy people live below their means, or are people who live below their means happy? Really, it's probably both.

If you regularly live below your means, you don't have to deal with the stress of being in debt. On the flip side, if you're already happy with your life, there is probably not the "need" (social/psychological) to live extravagantly, so you're going to be more able to live within your means.

[disneysteve]

We are on track to being happy millionaires based on that as we mesh with those stats perfectly. We are married and neither of us has ever been divorced. Our home is worth about $275,000. The male is the major breadwinner. Our household income is about $125,000 and I couldn't tell you the last time we spent more than $10 for a bottle of wine.

kork13, you ask a good question. I thought the same thing - which came first? I think the full article explains it, though. The happy people are the ones who have put their money to work making themselves financially secure rather than those who have spent it to surround themselves with stuff.

[Seeker]

Hmmmm. Why does the "male being the major breadwinner" have anything to do with this?

This implies that if the female is the major breadwinner, then there's going to be a certain amount of dissatisfaction. IMO not true.

I would venture to guess that the vast majority of families are composed of "male = major breadwinner" and females still tending to earn less money (if any)... but I disagree that it makes too much of a difference in what already is.

IMO, if you have two people working toward common goals, both financially and emotionally, and those two people can compromise and communicate about needs/wants, then you can attain satisfied, happy millionaires living below their means.

[disneysteve]

Seeker, I don't think he is proposing any causal relationship. He is just reporting the stats as they are.

[junosama]

Money is the biggest burden on life i will not be happy until i am financially secure and debt free.

Everyone is different and i dont think you need alot of money to be happy its really just how you deal with stress and how much stress you have.

[rob62521]

This makes me think of a friend of mine. Before he retired he made good money. He loved spending money and the thrill of the hunt was exciting. He has huge collections of a variety of things. When he retired, he never scaled back on his spending although his income was less. He's not happy with what he has -- he is always searching for something else. I think the key is being satisfied and therefore happy. Happiness has to come from within. He's always tried to buy happiness and it isn't working.