There’s a cozy coffee shop in Venice Beach where I often write. The owner, Maria, drives an old Honda and lives in a rent-controlled studio. Surprisingly, she seems happier than many tech executives earning six figures.
Maria loves her Sundays spent surfing, knows her customers by name, and even grows tomatoes on her balcony to share with the community. Her life feels rich—not because of money, but because of the joy she creates.
We’ve built this idea that money equals happiness, but the truly happy people I know on modest incomes have discovered a secret: there’s more to life than what’s in your bank account.
Here’s what they understand that many others miss.
Finding Free Joy
Many things that bring me joy cost nothing. A walk through Griffith Park with my camera, listening to my vinyl records, or cooking at home instead of dining out. Those who find happiness on a budget have simply learned to appreciate what money can’t buy. They attend free museum days and local events, enjoying life without spending much.
These activities aren’t about depriving yourself; they’re about discovering that simple pleasures can create lasting happiness.
Investing in Skills
My grandmother raised four children on a teacher’s salary and had a toolkit of skills: sewing, gardening, cooking from scratch. These abilities saved her money and provided independence.
Happy, modest-income people know that skills can be more valuable than money. Cooking well means fewer takeout expenses. Basic home repairs keep costs down. Each skill mastered is money saved and fosters confidence and autonomy.
Prioritizing Experiences Over Things
I have friends who earn less than I do but have traveled far more. They use creative ways to explore the world, like housesitting or traveling during off-peak seasons. Research supports this: experiences create deeper happiness than material goods.
So, opting for a concert instead of a new sofa can lead to richer memories. It’s the experiences and the people we share them with that truly add value to our lives.
Building Community
When my partner and I moved in together, we started swapping meals with our neighbors. This not only saved money but also fostered friendships.
People happy on modest incomes thrive within their communities. They share resources, babysit, and organize events, all of which provide both social connections and financial relief. Community is a priceless asset.
Rejecting Lifestyle Inflation
When I started earning more as a freelance writer, I quickly upgraded my living situation and bought new things. I thought it would make me happier, but it didn’t. Lifestyle inflation can trap people in a cycle where they spend more as they earn more, preventing true financial security.
Those who stay grounded focus on a standard of living that feels good and resist the urge to fall into consumerism.
Finding Meaning in Work
I know a guy who works at a plant nursery and earns just above minimum wage. Yet, he loves his job and finds pride in his work.
For many, work isn’t just about the paycheck. It’s about finding purpose and connection. They pursue jobs that fulfill them, knowing that satisfaction from work often outweighs the financial reward.
Mastering the Psychology of Enough
There’s a concept in behavioral science called the hedonic treadmill, where you adapt to your achievements but always want more. Truly happy people manage to step off this treadmill by defining what “enough” means for them.
“Enough” could be a cozy apartment or a reliable car. They recognize success doesn’t always mean chasing after more.
Spending on What Matters Most
While working as a music blogger, I knew artists who lived simply but invested in quality instruments. They prioritized their passions over material possessions.
Happy people know their values and spend intentionally. Whether it’s top-notch coffee or supporting a favorite cause, they focus on what truly matters to them.
Practicing Gratitude
Gratitude isn’t just about putting on a happy face, especially when there are real struggles. Happy individuals acknowledge financial stress but also find appreciation in what they have.
For example, my grandmother volunteers at a food bank, recognizing both the challenges and the blessings in life. Gratitude can coexist with hardship.
Understanding Wealth is Relative
Living in Los Angeles on a freelance budget, I sometimes feel less wealthy compared to friends in corporate jobs. Yet, I enjoy flexibility and creative freedom, which are invaluable.
People understand wealth isn’t just about money. It’s about time, quality relationships, and living according to your values.
In summary, it’s crucial to recognize that money does solve many problems, but it doesn’t create true happiness. The happiest people I know find fulfillment in meaning, connection, and joy without solely relying on their finances. They’ve learned that much of what brings happiness isn’t for sale at all.
