What does it take to be happy? About $75,000

[SecularMotion]

Source: Chicago Tribune

Does happiness rise with income? In one of the more scientific attempts to answer that question, researchers from Princeton have put a price on happiness. It's about $75,000 in income a year.

They found that not having enough money definitely causes emotional pain and unhappiness. But, after reaching an income of about $75,000 per year, money can't buy happiness. More money can, however, help people view their lives as successful or better.

In the study, researchers tried to evaluate the effect of money in two ways: One was on how people think about their lives and the other was on the feelings they have as they experience life. Responses from more than 450,000 Americans, gathered in 2008 and 2009, were evaluated.

The study found that people's evaluations of their lives improved steadily with annual income. But the quality of their everyday experiences -- their feelings -- did not improve above an income of $75,000 a year. As income decreased from $75,000, people reported decreasing happiness and increasing sadness, as well as stress. The study found that being divorced, being sick and other painful experiences have worse effects on a poor person than on a wealthier one.

Read more: http://www.chicagotribune.com/health/la-heb-money-20100906,0,7805444.story

[Demeter]

1. I guess I'm cheap, then

Daughter of Depression-born parents. I can be happy on much less, and have been.

[glowing]

2. that contessa on msnbc didn't think it was enough money. the guy next to her new she messed up

big time. most families don't even make that a year.

[dazzlerazzle]

3. What does it take

Lot's of different scenarios. Suppose you are someone who inherited a house relieving you of the burden of a 30 year mortgage? In that case you may even be able to get by working at Lowe's. Also, the income would have to be continuous, or the family would have to be financially prepared for an extended period of unemployment.
The 75 thousand figure for a family income seems about right. I always argue that it is the "take home" wages are what anybody should concentrate on in making decisions on financial dealings.

[Lorien]

4. It depends on where you live. 75k is a lot in many rural areas

but very little in New York, L.A., or Boston, among others. My mom read another study that said that no amount above an extra $55,000 a year made any additional positive impact on a person's level of happiness. That meant that you made what it took to pay all your basic cost of living expenses, PLUS an additional 55k. The extra money could cover retirement savings, home repairs, vacations, college funds, medical expenses (perhaps), luxuries, whatever. Why a CEO thinks he or she is better off with an extra 11 million bonus every year instead of their base salary of six million is beyond me. Giant homes only add to a person's stress level, and really-what else are they going to do with it?

[glinda]

5. Since we bring in under that amount, my husband looked

at me and said "yea...we are supposed to be HAPPY!". Yup... pretty much mortgage payments, health Insurance, bills, etc.... eat a lot of it up. Cannot afford even new glasses and totally cannot afford dental work. Still paying off our taxes.

[CatholicEdHead]

6. It looks like the countrywide average of the American Dream

the house, kids, dog. You are not starving, feel mostly comfortable in retirement and for your kid's college. As others have said, it is too much in some areas, not enough in others.

[OnlinePoker]

7. They must be downright miserable in Mississippi with the lowest median income of just half that

Want to know where your state stacks up?

http://www.census.gov/hhes/www/income/income.html

and click on "Median Household income for States".

[ArcticFox]

8. They're talking about $75K per person, not per family

I notice some posters assuming this is a per-family figure, but the article specifically refers to "your average $75,000-a-year worker."

It's nice to finally understand why I'm stressed out all the time. With a wife and daughter (and living in Los Angeles, where I'm sure the $75K is really $125K), we're nowhere near the amount that should make us happy.

[DesertFlower]

9. it doesn't make you happy, but it

does make life easier.

[Raster]

10. You cannot buy happiness...

...you may be able to lease it on a long-term basis.

[RoccoR5955]

11. WTF makes them think that you can BUY happiness?

I find it absurd.

[hedgehog]

12. I think the point is that until you achieve the security afforded

by such an income, you're going to be too worried about making the rent/mortgage, paying the food bill, keeping a car on the road, etc to be really happy. On the other side, once you have a reliable car, does it make you that much happier to have a top of the line model with heated leather seats, DVD player, etc etc?