Income threshold for happiness: $75,000 a Year
Money can't buy happiness, but a recent study shows that having it doesn't hurt either.
The study, which analyzed the behaviour of 450,000 Americans over the past two years, suggests that there are really two forms of happiness: day-to-day contentment and overall satisfaction with one's place in the world.
Analyses of happiness don't often make this distinction, and it’s an important new development in this line of research, maintains Daniel Kahneman, one of the study’s authors.
That’s because while earning more money does improve our daily lot, it appears there’s a limit to what it can do.
What’s the threshold? About $75,000 a year – after that, it's just about keeping score. More money “does nothing for happiness, enjoyment, sadness or stress,” the study concludes.
People who earn more than $75,000 say they feel better about their lives generally. But how happy they are on any given day doesn't really seem to change that much.
On the other hand, most people’s overall sense of success or fulfillment does continue to rise as their earnings grew beyond that point. But this isn’t the same as experiencing day-to-day happiness, the researchers suggest.
"More money does not necessarily buy more happiness, but less money is associated with emotional pain," they write.
"Perhaps $75,000 is a threshold beyond which further increases in income no longer improve individuals' ability to do what matters most to their emotional well-being, such as spending time with people they like, avoiding pain and disease, and enjoying leisure."
What do you think? Is 75k a year a significant threshold? Or is happiness really even a money issue to begin with?By Gordon Powers, MSN Money
Posted by: Anna | Sep 15, 2021 6:59:29 PM
I personally think that having money can be associated with less anxiety and stress, unless of course earning that money causes you anxiety and stress lol . Inability to pay for everyday expenses such as food, housing, car, and entertainment can be very stressful and ungratifying, which can lead to unhappiness, so in a way money does bring you happiness in one form or another.
Posted by: Destin | Sep 15, 2021 7:16:49 PM
It really depends on your lifestyle and if you have children at home, and how many people depend on you.
Posted by: gladys slim | Sep 15, 2021 8:15:29 PM
I'm a woman handicap ,with 8000 $ year i wish if i can have money to survive like all the people normal life i need help . if you can ....I'll thank you
Posted by: Dogmeow | Sep 15, 2021 8:30:19 PM
You all, including the author of this almost laughable topic, are completely wrong.
It's not wealth that brings happiness, it is freedom. The more money you HAVE not make will decide how happy you are about life. It is very simple to see that the stress of work is the largest factor in this discussion. If you really want to believe that people are not going to be happier beyound 75k a year, then you truly are blind to common sense.
If I have 10 million dollars, I can travel, fart around at home, catch a movie, play sports, invent something, attend a school to educate myself on anything I want for no other reason than knowledge.
For 150k+ a year working, I am still working. It will not matter how much you make a year, if you are still a slave to the workforce then you will always have a nagging persistent feeling of duress.
Don't look at the ends justify the means, it get's you nowhere and accomplishes even less than that. Work hard, retire early and you will be happier than a pig in shit.
Posted by: Private Howe | Sep 15, 2021 8:36:55 PM
I make $20,000. a year for two. Live on a yatch and travel all over South East Asia from Novembeer to Tax time. When I'm broke I eat salmon, crab and prawns plenty of greens and go through 69 litres of red wine a year ( 3 batches of 23 ltrs ea. )
Lets see! Uhm, what else. Oh ya! when I feel rich I splurge at McDonald's on a $1.69 bacon cheese deluxe with a refill free coffee and a .20c brand muffin.Totalling 3 something and I am too full.
I have 27 ft. motorhome, an all wheel drive and an older Golf V.W. that get 50 miles a gallon.
Also a 12 foot alluminum boat w/ a 9.9 electric start Yamaha + a 10 ft Zodiac and an alluminum canoe. In a few minutes, I'm going fly fishing for trout because it's nice out and the flies are coming out so the trout will start feeding.
Finally, my point is that $75.K a year would probably confuse me as aparently,like the majority is.
Take a nice day and go fishing. Hope to not catch any so as to not break your meditation time.
Be good. Bobby, up North.
Posted by: Evan Volker | Sep 15, 2021 9:52:57 PM
Happiness is 30% circumstance, and 70% attitude. You can wake up and appreciate the roof over your head, or you can wake up wishing your roof was 70' tall and covered in diamonds. You can moan about having to be up for work, or you can appreciate that cup of coffee your having that morning, and looking forward to working hard and earning your paycheck.
PS I'm not perfect either. Why today, I was told to take the day off while my boss lined up some work, and I spent a good portion of the day grumbling about having a smaller paycheck instead of enjoying the time I had off.
Posted by: jp petit | Sep 15, 2021 10:23:58 PM
I definetly think that more money make hapiness, because you can do more stuff, expérience new stuff, developping new sport, travel and more. People without money wacht and ear about people who have more money and they become more jalous. Drinking beer and wacht sport (what people with out a lot money do) this is a renonciation of live life experience from the world because they know they can't do that. Poor people are restricted and can not live their dreams. Poor people are like jelyfishs (they flot with the flow and are limited in their movement) and rich people are like dolphins.;)
Posted by: Jaikay | Sep 15, 2021 10:46:05 PM
Greener on the other side??? Everyone answers from their experience. I remember making 20smthingK and wishing for 30K. Then that came and hey i was wishing for 45K. That came and went with ofcourse an increase in my wants. I could live in a 1 room basement and be happy as a single woman but I feel I need to have a nice place, a nice car to go with my nice job and so on. Choices....choices. Get more of an education for more money, move away to seek ur fortune, stay true to yourself and be nice...do not step on others toes on your way.
Posted by: L Stevens | Sep 15, 2021 11:03:35 PM
Maybe if the government didnt rape us we all may have a chance to make 75k
Posted by: diane10 | Sep 15, 2021 11:21:41 PM
To: L Stevens,
I agree taxes are too high but you can't always blame others for your lot in life. As others have said in this blog, money beyond basic needs and a bit more for life's pleasures, will not buy you happiness. That is something you have to find on your own. I know.
Posted by: see the pont.... | Sep 16, 2021 12:04:30 AM
Notice how everyone posting is on the really high end or the really low end... i think alll the 60-80kers are out being happy and not reading these articles
Posted by: Bob | Sep 16, 2021 4:56:39 AM
75k A YEAR????????? where do i sign up
Posted by: john | Sep 16, 2021 10:30:34 AM
some of the comments on here are really getting off point, but id imagine most of them are single people because the majority of the comments are about friends and not family. to me happiness would be always having money in the bank to avoid the pinch. i'm rather young just started my family so the question is in a different light to me, 75 grand a year for my family would insure a number of things mainly being able to buy a house instead of renting one. secondly good schooling, and college or university without my children being in debt for the 15 years after there schooling is done. being able to replace old clothing on a regular basis, being able to pay medical bills immediately without a debt hanging over my families head. i can list these things all day but to sum it up having money most definately relieves stress and takes care of needs, and removes alot of worry, and that alone will put you and your family on the path to happiness. having friends is a bonus but your financial situation should never reflect on spending time with your friends or the amount of friends you have, if that is the situation then they are more interested in what you have then who you are.
Posted by: LC | Sep 16, 2021 5:00:22 PM
I've been in the 75k range since 25 and it doesn't necessarily bring hapiness if you live in Vancouver. You cannot find a house on the west side of Vancouver city for under $1M and even in the east side they're around $700k for a junky house.
Posted by: John | Sep 16, 2021 10:01:26 PM
$75k seems extremely low. What decade was this article written in? I am not trying to be rude, but how can anyone live on this annual income?
Posted by: Tina | Sep 16, 2021 11:01:34 PM
75000 is nothing . after the government takes over 40% of it as TAX you end up with $40K.and everything you buy have to pay 13% HST. that brings it to $36K meaning $ 3000 per month and try to rent a half descent house for a family of four in Toronto after paying for heat and hydro your $3000 is gone. !!!!!! How do you eat and buy ipod for your teenager and new cloths for wife still a mystry to me.
TO DEAR SAM who makes 32000 and he only needs a wife good luck or your wife better make at least as much as you make or you wish you would stay single for ever!
Posted by: aaa | Sep 17, 2021 8:27:13 AM
After reading all these comments, the final one I read from "Tina" has struck me the most.
We are a family of 4 living on just under 70,000 a year. You are complaining about NOT being able to do it in Toronto. We live 1-2 hours away from Toronto and CAN live on that, with virtually no problems. Our family can't go into any real debt, but we live in a comfortable house and the kids have good clothes. We also have enough money for small family outings, every other weekend. Get out of Toronto, is my biggest suggestion, Tina.
Tina, also, our kids don't have ipods, cell phones, etc. We refuse to waste the money. When they get a job they are allowed to buy themselves those nice extras, if THEY wish. (By the way, for my oldest, that is incentive to get a job...and is trying very hard.)
Posted by: don | Sep 17, 2021 5:48:36 PM
John: Most Canadians live on under 75,000.00 per year. You are privildged.