The Surprising Income Level Where More Money Stops Making You Happier, According To Research
Andre Sebastian | Unsplash There's a reason "rich" and "happy" get used like they're the same word. Turn on the TV, scroll through Instagram, or watch literally any luxury car commercial, and the message is that more money means a better life. More money, more problems, right? Notorious B.I.G. might have been on to something here. Can money buy happiness?
Many studies have been done documenting the correlation between money and happiness over the years. Despite this, an overwhelming majority of people you run into and randomly ask will tell you they believe that more income each year would make them happier.
But when it comes to how to be happy, and not just pretending you are, what the general consensus says about the correlation is exaggerated. First, let’s discuss why people are so quick to believe this fallacy.
Because money in this country is typically associated with fame, many people instantly become smitten with the lifestyle as a whole. This explains why so many people are breaking their necks to be professional athletes, actors, directors, and so on.
We see these people, and we assume they’re happier because they bought that custom-made Gucci suit, or can afford a celebrity trainer to get them in the best shape, and things of that nature. However, even some celebrities will tell you that having a lavish lifestyle isn't all it's cracked up to be. This is why so many people believe that money guarantees happiness — and it can, up until a point.
Research found that the income level at which money stops making you happier is $95,000 per year.
Nate Johnston / Unsplash
According to a study from Purdue University and the University of Virginia, money brings more happiness up until $95,000.
Psychology researchers found this information by gathering self-reported income and life-satisfaction data from 1.7 million people across 164 countries. In addition to these results, they found that making any more than $95,000 was typically correlated with lower life satisfaction, due to becoming materialistic and trying to portray a certain image about your life.
Understanding how to be happy means understanding the difference between true happiness and emotional well-being. Most people don’t think of this, but happiness is only a part of emotional well-being; therefore, the latter is more important.
If you have all your needs being met with a $50k income, more money will hurt you more than help you.
This is because some people don’t know how to manage their money when they get more of it than they’re used to.
Draw from this conclusion what you will, but making this amount of money keeps you humble enough to be happy with what you have, all without breaking your bank to try and keep up with the Joneses.
The bottom line isn't that money doesn't matter, because, of course, it does. Having enough to cover your needs and build a little security genuinely does make life better.
But there's a ceiling on that effect, and once you're past it, the chase itself can start working against you. The real flex might just be knowing when enough is actually enough.
Eric Webb is a national award-winning pop culture critic, arts & entertainment journalist, editor, and film programmer.
