Sixteen years ago, two researchers stumbled upon a surprising discovery: you could, in fact, put a price on happiness. Their finding — that happiness levels plateau after you earn $75k — made international news. The middle class was jazzed.
But that was then. This is now: inflation is up nearly 50%, the markets are steering toward a correction and it’s never been more expensive to be alive. So how much does happiness cost today?
Hundred-thousand-dollar smile
A straight, inflation-based calculation puts 2010’s happiness at ~$112k in today’s dollars.
But since then, other researchers have tried to attach an updated price tag to life satisfaction.
The ideal income point, as determined by research from Purdue University, varies depending on where in the world you live:
- $125k in Australia
- $105k in North America
- $70k in Southeast Asia
- $45k in Eastern Europe
According to Matt Killingsworth, a senior fellow at the Wharton School at the University of Pennsylvania and the guy who keeps the world’s most robust happiness data, there isn’t a ceiling after all.
“As far as I can tell, more is more,” he tells The Hustle.
Academics have long argued that once you earn over a certain amount, your happiness gains are negligible or even turn into losses. But Killingsworth says the data doesn’t bear that out, even with the longer hours more income generally requires.
“I’ve already gone way past the threshold where they argue that occurs and that’s not what I’m seeing,” he says.
Control freaks
One noteworthy data point that does stand out to him, though, is that while people who make more are happier outside of work, they’re certainly not any happier 9-to-5 than their fellow office drones.
“Money seems to matter where we can spend it,” he says. “Money buys you freedom over the things you want to do.”
Killingsworth suggests thinking about income in terms of agency. Control, it turns out, is one of the most important mechanisms linking money and happiness.
“Is higher income giving you freedom,” he asks, “or taking it away?”
Still, it’s possible there is a plateau and he just hasn’t found it yet. His next study will seek to answer: is there such a thing as too rich?
We’re going to go out on a limb and guess no.
Wealth
