It turns out money can buy happiness and now Economist Angus Deaton and Noble prize-winning psychologist Daniel Kahneman have determined that the exact amount needed for ultimate happiness is just $75,000 per year.
The pair of researchers examined data from the Gallup-Healthways Well-Being Index and their findings shown that people become increasingly happy as their household income increases until it reaches $75,000 annually.
The study says that once the $75,000 level has been reached people tend to flat-line emotionally from their high. Deaton explains in the Gallup’s Management Journal:
“Your emotional well-being is as good as it’s going to get at $75,000.” Deaton goes on to add “It’s like you hit some sort of ceiling.”
Perhaps the most interesting part of the study is that it holds up even in big expensive cities like New York and Los Angeles.
Now before you go and find a $75,000 job the research also shows that happiness has to be measured in two axes, the first being the day-to-day emotional well-being of the person being evaluated (of which having friends is the most important) and second is the long-term “life evaluation” which requires setting realistic goals.
When all is said and done the study found that:
“The very best thing that can happen to people is to spend time with other people they like.”
It should also be noted that “life evaluation” continued to rise as a persons income passed $75,000 annually.
Do you think money can buy happiness on some artificial level based on how a person spends plans for later in life and who they hang out with?
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