The Enjoyment-Expense Curve

Follow my thinking here ... you're a poor man living in Africa, earning $10 per month. You can manage to put food on the table and buy some cheap clothes possibly. If you are upgraded to $20 per month, your quality of living increases fairly considerably, maybe it even doubles. Imagine you are a millionaire. Think of all the things you can do with your money - the big house, nice car, great dining, holidays. Now imagine you become a 2-millionaire. But does the quality of your life really improve that much? Not really when you start to think about it. Your car goes from zero to 100kmh a bit quicker, your house has a few extra rooms, your clothing improves marginally, etc. Actually, your quality of life goes up 10% maybe. Now this is a great principle when you are trying to decide how to spend your money cost-effectively. Ask yourself: if I spend 100% more, does my quality of life or pleasure increase 100%? When you start to take that approach, you'll realise that a lot of your money could be given to those for whom a 100% increase in income would really make a difference.