Takeaway: everyone should learn to invest, become rich and happy!
Forget being rich in friendships, folks, it’s time to 10x that salary and start a side hustle dropshipping iPhone cases. A new study found that happiness rises with income—even accelerating at levels beyond $100,000 per year up to $500,000 per year.
Millionaires and billionaires might be even happier: The study’s authors didn’t have conclusive data for salaries beyond that range (those folks are probably too blissed out to take surveys). This new information upends an oft-cited 2010 study that found happiness plateaued near a salary of $75,000, or ~$103k today, after inflation.
In the new study, published in the Proceedings of the National Academy of Sciences, two prominent researchers (including Daniel Kahneman, the Nobel Prize winner who wrote that 2010 paper) surveyed 33,391 US adults aged 18 to 65 with household incomes of at least $10,000. Participants logged their happiness levels when prompted randomly throughout the day via an app.
A caveat: While more money does lead to more happiness for most people, it’s not the only factor, and its emotional effect is small compared to other considerations, like time off from work. “An approximately four-fold difference in income is about equal to the effect of a weekend,” the study said.