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| Money can only buy happiness up to a point. But just how much you need to get to that threshold really depends on where you live, according to a new analysis by Doug Short, vice president of research at investment group Advisor Perspectives. Short's analysis found that if you live in a place like Hawaii, where the cost of living is relatively high, you need to make $122,175 per year before some extra cash doesn't really translate into more happiness. In Mississippi, by comparison, the threshold at which more money stops making you happier is a lot lower: $65,850 per year. How much money do you need to make in your state before more money doesn't really make you all that happier? We created a map so you could find out. |
They find that the more money you earn, the more you desire.
I've never placed much weight on these types of happiness benchmarks, as the studies are often pretty bad, coupled with relatively sloppy analysis.
Stanford study says differently... - ( New Window )
I take a pay reduction because my work/life balance is unreal right now. Would an extra 20-30% more really make me happier? Probably not.
Too late.
RasputinPrime : 2:19 am : link : reply
but damn if i'm not stressed and working around the clock. There has to be a sweet spot for everyone and I doubt it is tied to money as much as money/stress/people balance.
I absolutely agree with you that happiness it isn't about the money.
But ultimately, there's a minimum below which you are spending most of your energy simply trying to survive.
I think the study is an awkward way of assessing cost of living per state. Once you reach a minimum of ease of providing shelter and food, beyond that is all personal preference.
And even per state is a bad analysis. I'm in upstate NY. I don't have to worry about whether I'm getting ripped off of 25 sq feet in my living quarters, whereas in NYC someone was fretting over an apartment which was smaller than my bedroom.
I agree with you that their numbers are a little arbitrary but their point is valid. Beyond a certain point more money doesn't bring your real happiness. Sure you can buy something that might give you or your family additional enjoyment but I think people sometimes confuse enjoyment for happiness. There are people with very little and struggle mightily who are genuinely happy and then there are people who can buy pretty much whatever they choose and are unhappy.
The problem is that while this is broken down by state, it is still not broken down enough to account for cost of living in certain areas. The happiness benchmark in NYC is nowhere near that of the happiness benchmark of say living in the Catskills.
I would much rather see happiness benchmarks broken down by some sort of localized CPI-- like perhaps the average cost of a gallon of milk, or something else like average rent per sq ft.
I think they, in the original study (by Kahnemann and Deaton) included these predictors. The impact of "income on happiness" is a huge question in economics, with impacts for welfare.
Like, huge impacts for welfare.
Never liked their study anyways, for the reasons you mentioned.
I think they, in the original study (by Kahnemann and Deaton) included these predictors. The impact of "income on happiness" is a huge question in economics, with impacts for welfare.
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I am not surprised. I think a lot of media reports of scientific studies suck. They seem to very often present an overly simplistic summary of what was actually done when you look at the source article. Years ago, a friend of mine had a study on postpartum depression picked up by the national media (e.g., Fox, CNN). Some of summaries of the study presented the findings as basically the opposite of what he had actually concluded!
I am not surprised. I think a lot of media reports of scientific studies suck. They seem to very often present an overly simplistic summary of what was actually done when you look at the source article. Years ago, a friend of mine had a study on postpartum depression picked up by the national media (e.g., Fox, CNN). Some of summaries of the study presented the findings as basically the opposite of what he had actually concluded! [/quote]
I should clarify that Fox and CNN reports were accurate, but some of the others were way, way off the mark.
The Geography of Bliss - ( New Window )
Ha, I'm still not good at it.
Glad we got to catch up the other night.
Quote:
one of these years I'll master quoting.
Ha, I'm still not good at it.
Glad we got to catch up the other night.
Yeah, I had a great time. I wished I could have stayed later. There is no shortage of interesting things to talk about! Let me know if you come back for winter break.
NY is bigger than the metro area.