It turns out, money can buy happiness, and it only costs $75,000. Research by Nobel laureat Daniel Kahneman provided insights into the relationship between how much you make and your happiness. The study analyzed results from 450,000 Americans found that the tipping point for happiness lies at $75,000. They found people who earned less than $75,000 per year were more likely to feel stressed and sad. However, at $75,000, money didn’t seem to buy more happiness. Kahneman suspects this is because $75,000 may be the threshold beyond which making more money does not provide what matters most to people – such as spending time with friends and family.
Keeping up with the Joneses
With social media, we are constantly bombarded with updates of what our friends are up to – we see pictures of their fancy dinners and exotic vacations, we realize pretty soon we also want that lifestyle. It’s hard to avoid keeping up with the Joneses. If you haven’t heard of the term “hedonic treadmill” – It’s a phenomenon where as a person makes more money, their desires for better things also increases, and when they finally do make that purchase, there is no permanent gain in happiness.
What are your thoughts on money and happiness? Did you feel happier when you got a raise? and how long did that happiness last?