The hotly debated theory that money can t buy happiness is getting another shakedown courtesy of a new salary vs. 5 to 6 medium.
Twenge concludes money indeed can buy more happiness now than it did in the past.
Income happiness graph. Each country is an arrow on the grid and the location of the arrow tells us the corresponding combination of average income and average happiness. Experts say that happiness does increase with wealth but the correlation peaks at earning 75 000 per year. Short s analysis found that if you live in a place like hawaii where the cost of living is relatively high a household needs to make 122 175 per year before some extra cash doesn t really translate into more happiness.
9 to 10 very high. Life satisfaction ratings are grouped as follows. The lower a person s annual income falls below that benchmark the unhappier he or she.
The link between happiness and income is fraying. Rising income it turns out produces greater happiness until you get to around 75 000. After that there are diminishing returns with more income leading to little or no gain in real happiness.
Happiness is the mean life satisfaction rating a score out of 10 for 35 50 year olds to broadly control for career stage and was taken from the annual population survey 2011 2013. In mississippi by comparison the threshold at which more money stops making you happier is a lot lower. A survey of 43 countries published on october 30th by the pew research centre of washington dc shows that people in emerging markets are within.
7 to 8 high. Twenge s research also discovered happiness is more strongly related to income now than it was in the 1970s and 80s. 0 to 4 low.
A week in northern virginia on a 204 000 joint income. One well publicized study last year put the optimal income for happiness at around 75 000. To show the income happiness correlation across countries the chart plots the relationship between self reported life satisfaction on the vertical axis and gdp per capita on the horizontal axis.
Sources for data are the world bank and the world happiness report 2017. Today s chart looks at the relationship between gdp per capita ppp and the self reported levels of happiness of each country.