It always drives me crazy when people that make 50k+ a year complain about not having money. I live on about $500-$600 a month and I'm fine. Granted, not everyone is ablebodied and living within biking distance of their school/work, but most certainly could be, especially with a little effort.
Not needing money is incredibly liberating, I advise everyone to just try it for a year.
I agree with you. My current life style ends up around $7,000 a year. I live in a very affluent mid-east city. I don't own a car (15 minute walk to downtown), I don't eat out constantly (I prefer healthy meals), and I don't buy a bunch of luxury junk. I can honestly say that I do not feel like I'm struggling at all.
Having the 'standard' car, house, and family are unnecessary luxuries. It's fine if you choose to do these things but it's silly to me that people feel poor making 50k+. I would argue that if you are struggling with those types of income, your lifestyle is severely out of whack. You don't have to keep up the Jonses to lead a very happy, healthy life.
The benefits of living cheaply are pretty obvious and already pretty well covered. The ability to work on whatever I want, whenever I want all without ever having to think about the personal finance side of it, is just incredibly freeing.
None of us 'need' money after a certain point but everyone's perceived 'enough' is different. Some of us love having a good chunk of money and the amazing opportunities that it brings.
Not needing money is incredibly liberating, I advise everyone to just try it for a year.