A $65K Paycheck Will Buy Happiness
Cash is king, as the saying goes. But how just how much does it take to make you feel royal? And even if money can't buy happiness, how much do you need to avoid being miserable? At least miserable over your finances.
Would you believe $65,000 to $95,000? Higher for families.
Researchers at Purdue University came up with this figure by crunching an enormous amount of data from 1.7 million people around the world. The estimates were derived based on purchasing power and questions relating to life satisfaction and well-being from the Gallup World Poll.
Globally, it averaged out to between $60,000 and $70,000 in annual earnings for emotional well-being. For life satisfaction, that is meeting your own goals and in comparison to others around you, the amount is higher; $95,000 globally and $105,000 in North America. But as the lead author of the study published in the journal, Nature Human Behaviour, Andrew T. Jebb, said, "There was substantial variation across world regions, with satiation occurring later in wealthier regions for life satisfaction. This could be because evaluations tend to be more influenced by the standards by which individuals compare themselves to other people.”
So, in Latin America, happiness comes at $35,000. Alas, if you happen to live in Australia or New Zealand, satisfaction doesn't come until you're earning $125,000.