The perfect income for happiness

The Takeaway

This story was originally covered by PRI’s The Takeaway. For more, listen to the audio above.

Researchers from Princeton University have a new take on the axiom “money can’t buy happiness.” They’ve found that money can’t buy happiness beyond $75,000 per year. After that, more money doesn’t correlate to more emotional satisfaction or wellbeing.

“This study comes from an absolutely enormous survey,” of some 450,000 people, Professor Angus Deaton, who co-authored the study, told PRI’s The Takeaway. The researchers measured two kinds of happiness: the every day, emotional wellbeing — how happy people were yesterday, how much they smile and enjoy life — and overall life assessment or satisfaction.

The researchers found that more money was associated with more emotional wellbeing, up until people make $75,000 per year. At that point, the happiness plateaued. In other words, people’s day-to-day happiness improved as they made more money, until their annual salary reached $75,000. Then it didn’t make much of a difference

More money did correlate to a better assessment of overall satisfaction, however, even beyond $75,000 per year, according to the study.

The results could have an effect on the way people are paid. For example, Deaton says that if a person gets a raise from, say, $100,000 per year to $200,000 per year, that huge increase “probably makes your mood pretty good for a day or two, but after a while it’ll probably go back to what your mood usually is.”

“The Takeaway” is a national morning news program, delivering the news and analysis you need to catch up, start your day, and prepare for what’s ahead. The show is a co-production of WNYC and PRI, in editorial collaboration with the BBC, The New York Times Radio, and WGBH. More at thetakeaway.org

Do you support journalism that strengthens our democracy?

At The World, we believe strongly that human-centered journalism is at the heart of an informed public and a strong democracy. We see democracy and journalism as two sides of the same coin. If you care about one, it is imperative to care about the other.

Every day, our nonprofit newsroom seeks to inform and empower listeners and hold the powerful accountable. Neither would be possible without the support of listeners like you. If you believe in our work, will you give today? We need your help now more than ever!