Money can buy you happiness, but to what extent?
More Money = More Happiness?
According to a money vs happiness study on over 1.7 million individuals worldwide on human behavior. The researchers seek to answer this mind boggling question,
“How much money do you need to be happy?”
The results are shocking.
You can be getting a high pay, but it don’t correlates to the amount of happiness you get.
In fact, you can be working in a lower paying job but happier.
The study is based on a life-satisfaction survey conducted worldwide with over millions of people took part in the Gallup World Poll.
Respondents across the world were asked a few simple questions to rate their life-satisfaction on a scale of 0-10.
- 0 is the “worst possible life”
- 10 is the “best possible life.”
The researchers subsequently run through the data to analyzed the relationship between the survey score and household income.
More Money ≠ Happiness
correlation between money happiness
People are happier when they make more money as the emotional well-being rose with income, but only up until a point where the correlation gradually become less significant and eventually the correlation (r) of income to happiness become zero.
If you are earning $10,000 today and got a pay raise to $20,000 annual income.
Increase in income does have an significant increase to your happiness and life satisfaction level.
In fact, you almost have an 1 point jump from just being ‘acceptable (5.5)’ to ‘pretty happy (6.5)’.
Same goes if you get another pay raise and increase your income from $20,000 to $40,000 annual income.
You’ll have another 0.6 point jump from just ‘pretty happy (6.5)’ to ‘happy (7.1)’.
But you’ll notice, as your earning increase higher, the level of happiness doesn’t increase just as much.
Eventually, at a certain income level, the happiness level will start to plateau, or even fall.
8 points of the “income level and happiness study” is the highest rated points for anyone who want to achieve the maximum level of happiness by increasing their income.
Which means, ‘8’ is the highest level of happiness that money can buy.
Perfect salary for maximum happiness in The united states
People are happier when they make more money, Americans with a salary earning more than $95,000 annually are the happiest according to a study by Purdue University.
The study found that $95,000 annual income is the ideal income for life evaluation where you’ll not only have enough wealth to meet basic needs.
You’ll have a fulfilling life that meet the higher level of the Maslow’s Hierarchy of Needs.
Maslow’s Hierarchy of Needs Table
|1||Physiological Needs||Basic needs: Food, water, clothing and shelter.|
Basic needs: Protection from violence and general well-being.
|3||Love and Belonging Needs||Physical and emotional intimacy, ranging from emotional bonds to sexual relationships.|
|4||Esteem Needs||Self-confidence and acknowledgment from others.|
|5||Self-actualization Needs||Fulfilment of one’s potential as a person.|
The study shows, $95,000 annual income allows an individual to reach the highest level of happiness for wealthier countries like America, United Kingdom, Canada, Singapore and Japan.
But less wealthy countries earn less to reach the peak happiness.
Globally, people who are earning $60,000 to $75,000 per year shows the highest level of emotional well-being.
Why more money doesn’t make you happier?
Earning more money doesn’t make you happier because the things that bring long-term satisfaction and contentment cannot be bought.
In fact, earning more than $95,000 are associated with lower level of happiness.
The main reason why too much money is a bad thing is because,
“Money influences happiness through the fulfilment of both needs and increasing material desires.”
This is a psychological phenomenon called “hedonic adaptation”.
What is a hedonic treadmill?
A hedonic treadmill is a term used to describe the human tendency to pursue of pleasure one after another. Hedonic treadmill describes the effect of the return of your emotions to your baseline level after the surge of happiness felt after a positive turn of event.
Over time, we get used to that change in our life and our expectations changes, eventually our lifestyle changes as well.
When we reach the satiation point of $95,000 annual income per year, the desire to fulfil material desires increases exponentially. Thus, lower level of happiness.
Does money brings happiness?
Money does improve happiness and having a right amount of money can leave you feeling less stress and generally more satisfied with life by providing your general needs and wants.
According to the studies, the perfect salary for happiness is $75,000, which sits just around the middle of $60,000 and $95,000.
But depending on where you live in the world,
“Income of $60,000 to $95,000 will make you quite a happy individual according to science.”
Yes, money can buy happiness.
what are the happiest jobs that pay well?
Finding a job that you will like is quite tough, especially when you are trying to find one that you will find enjoyment working while making you a good living.
Here are some of the happiest jobs with good pay according to recent studies.
Happiest careers that pay well
|No.||Job Title||Median Salary||Education Requirement|
|1||Property manager||$51,229||Associate degree|
|4||Interior designer||$57,369||Postsecondary certificates|
|5||Marketing consultant||$59,493||Associate degree|
|6||Facilities manager||$62,769||Associate degree|
|7||Executive chef||$63,325||Postsecondary certificates|
|8||HR manager||$69,221||Associate degree|
|9||Aircraft mechanic||$69,472||Postsecondary certificates|
|10||Surgical technologist||$69,725||Associate degree|
|11||Physical therapist assistant||$70,904||Associate degree|
|12||IT consultant||$75,883||Associate degree|
|13||Accounting manager||$77,979||Associate degree|
|14||Dental hygienist||$78,974||Associate degree|
|15||Real estate agent||$90,687||Postsecondary certificates|
|16||.NET developer||$95,312||Associate degree|
|17||Finance manager||$97,916||Associate degree|
|18||Network engineer||$98,068||Associate degree|
|19||Software engineer||$108,981||Associate degree|
|20||Chief technology officer||$144,682||Associate degree|
|21||Loan officer||$176,466||Associate degree|
Does the study surprise you?
Are you going to find a higher paying job? Or even a lower paying job so you can be happy?
Let us know in the comments below!