Magic Number for Happiness: $75,000 a Year

MONEY-SEPTEMBER 12, 2010
Edited By NIKKI WALLER

Money can't buy happiness, but a study shows that we can earn it.
The study, which analyzed Gallup surveys of 450,000 Americans in 2008 and 2009, suggests that there were two forms of happiness: day-to-day contentment and overall satisfaction with one's place in the world. While a higher income brings little day-to-day contentment, it does boost people's overall satisfaction.

The study, conducted by Princeton University economist Angus Deaton and famed psychologist Daniel Kahneman, found that there's a specific dollar number, or income plateau, after which more money has no measurable effect on day-to-day contentment.
As people earn more money, their day-to-day happiness rises. That is, until you hit the magic number: $75,000 a year. After that, it's just more stuff, with no gain in happiness.

That doesn't mean wealthy and ultrawealthy people are equally happy. More money does boost people's overall satisfaction all the way up the income ladder. People who earned $160,000 a year, for instance, reported more overall satisfaction than people earning $120,000, and so on.
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However, $75,000 in New York doesn't buy as much as it would in, say, South Dakota. Based on cost-of-living index values from Kiplinger.com, the happiness salary would vary widely across the nation. For example, New Yorkers would have to earn $163,000 a year to achieve the $75,000 happiness level; in Chicago, $84,750. It took the least amount of money to achieve happiness in Fort Smith, Ark., and Pueblo, Colo., where a $62,000 salary buys $75,000 worth of happiness.

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http://online.wsj.com/article/SB10001424052748703467404575486310348815640.html

Because, let me tell you, that much money doesn't go very far to feed, clothe, and educate three children.

But most Republicans can't.

:evilgrin:

This is a repost from September. When I looked at the original article then, it appeared to be per person.

Certainly, my household (two parents and one child) brings in more than $75K and we're not quite "happy" or comfortable. (Granted, we live in LA, CA). Our savings are going nowhere and I'm sure we'd need at least $150K per year in income to be anywhere near "happy" (i.e., able to save for retirement or a house or even a rainy day).

i could fix my house and buy a couple of good used cars. hell my wife and i could afford a vacation. but none of that`s going to happen on 30,000 a year

general negative outlook on good manufacturing and/or good paying jobs, I remember this article and thought I would post it.

Its a minimum threshold. I too could live a decent life. For the vast majority of us however, this will never be.
What could be done with one income 30 years ago, now takes all of two incomes.
We are constantly losing ground. Where is all the wealth and fruits of our labor? (rhetorical)

Or I walk.

for most people there is no honest way to earn such a sum...if you are going to wait to be happy until you have $75K a year you have already decided you will never be happy

Just curious.