More money automatically means more happiness for many people, but it's not that simple.
A new study shows that at some point you can't become happier just by earning more.
Let's find out, why.
It's not always connected
Research on the relationship between income and happiness has produced contradictory findings, leaving uncertainty about the link.
Princeton University's 2010 study suggested that happiness increases with income but levels off beyond $75,000, while the University of Pennsylvania's 2021 study found that happiness continues to rise with income.
To reconcile these differences, researchers collaborated and found that larger incomes are generally associated with greater happiness.
It's not that simple
However, within each income group, an unhappy subgroup experiences a significant increase in happiness up to $100,000, after which it plateaus.
Emotional well-being and income have a complex relationship, with the least happy group seeing happiness rise until $100,000, the middle range showing a linear increase, and the happiest group experiencing an accelerating association above $100,000.
These findings have implications for policy, compensation, and individual decision-making, but it's important to note that money is just one factor influencing overall happiness.
