Money does buy happiness -- but only to a point
•$75,000 is the magic number to happiness.
Income beyond that doesn’t appear to add the
same level of happiness.
•Why is that? It appears that once you have
enough to live comfortably, extra money doesn’t
really give as much in return.
Source: Kahneman, D., Deaton, A. (2010) High Income Improves Evaluation of Life but Not Emotional Well-Being.
Proceedings of the National Academy of Sciences.
Except for your car…
•Interestingly enough, this is the one “status”
possession that people associate with happiness.
•This is explained by “measures of social
connections,” according to one study.
•The funny thing? The value of the car doesn’t
increase the level of happiness we associate with
Source: DeLeire and Kalil: Does Consumption Buy Happiness?
It’s not the stuff that matters
•Most people over 50 say paying for experiences
makes them happier than possessions like jewelry
•Over time, past experiences tend to increase in
importance, while material possessions lose
•The biggest factors? Connecting with others, or
giving to causes important to you.
The “American dream” may not make you happy
•Homeownership doesn’t guarantee a happier
life, even though homeowners say they are
•The additional expense, responsibility, and time
appear to cancel out some of the benefits of
Source: Bucchianeri, Grace W. (2010) The American Dream, or The American Delusion? The Private and External
Benefits of Homeownership
Giving -- to yourself and others -- makes you happier
•Giving to causes we find important does make us
•Spending on others makes us happier than
spending on ourselves.
•Paying for an experience with your spouse today
correlates to future happiness in your marriage.
Source: Dunn, Elizabeth W (2008) Spending Money on Others Promotes Happiness
Treat yourself. Just do it less often to enjoy it more
•Paying for experiences in advance leads to
enjoying them more.
•Splurging on treats less often leads to enjoying
•Much like having more money, more treats
doesn’t add up to more happiness.
Time is more precious than money
•People with shorter commutes are happier with
their spare time and their job.
•Higher income correlates to higher stress about
time -- no matter how much you work.
•Is this why more income doesn’t add more
happiness past $75,000? Maybe so…
Source: Stuter, A. (2008) Stress That Doesn’t Pay: The Commuting Paradox;
HamerMech, D.D. (2007) Stressed Out on Four Continents: Time Crunch or Yuppie Kvetch?
Tax planning plays a key role in your financial security,
and most people don’t know about this one rule that
could make a huge difference. In our free report, our
retirement experts give their insight on a simple
strategy that can help ensure a more comfortable
retirement for you and your family. Click below. It’s