Happiness Doesn't Top Out at $75,000, Study Says

Key Takeaways

• A new study has found a strong correlation between household income, emotional wellbeing, and life satisfaction.
• The findings refute an earlier study, which found that happiness plateaus once a person earns $75,000 per year.
• Mental health experts say happiness is a multifaceted experience that's achieved through mindset—not money.

Study Findings

• A new study from the University of Pennsylvania contradicts the popular belief that happiness peaks at an annual income of $75,000 as proposed by the 2015 Nobel laureate in economics, Angus Deaton.
• The study analyzed data from over 33,000 adults in the U.S. and found that life satisfaction and experienced wellbeing continue to rise with income, even above the $75,000 mark.

Money and Happiness

• Wealth can help people avoid causes of suffering such as financial instability, fear, and stress, leading to increased happiness.
• Financial security provides a sense of control and stability, contributing to greater happiness.
• Perception of money's importance and its association with success can also influence the correlation between income and happiness.

Happiness Beyond Wealth

• Low-income individuals may experience greater uncertainty or stress, but they are not necessarily bound to be less happy.
• Achieving high wealth does not guarantee happiness.
• Happiness is multifaceted and can be found through pursuing meaningful goals, cultivating relationships, and adopting a positive mindset.

Achieving Happiness

• Develop a deep understanding of your goals and pursue them with purpose.
• Transform ordinary tasks into joyful efforts by imbuing them with personal meaning.
• Engage in activities that bring you joy and fulfillment, such as spending time with loved ones, pursuing hobbies, and contributing to your community.