Having money may bring you more happiness than spending it. It isn’t unusual for people to ask themselves how much money it takes to be happy. The next time this thought crosses your mind, don’t take it lightly because the answer is important.
Being Rich Doesn’t Mean Happy
A common assumption is a notion that happiness is synonymous with being rich. One problem with that assumption is that even members of your own family might have different expectations for what rich is. Contemporary sociologists such as Dennis Gilbert, a professor at New York’s Hamilton College, define rich as those who live off of income from their investments rather than occupation-driven income.
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By this standard, a doctor even one earning $1 million a year isn’t as rich as someone who has earned $1 million from stocks, bonds, real estate, copyrights, or other passive income sources. The reason has to do with time. The investor can sit at home and make money, while the doctor stops receiving a paycheck if they stop working. They’re only paid if they continue to sell their labour. However, others might define being rich by entirely different metrics.
It means our life satisfaction depends on. How you feel about what you’ve accomplished, but the degree to which you love your work is the icing on the cake.
So How Much Money Do We Need to Be Happy?
Psychologists from Purdue University and the University of Virginia analyzed World Gallup Poll data from 1.7 million people in 164 countries and cross-referenced their earnings and life satisfaction. Although the cost and standard of living different across these countries, researchers came up with a bold conclusion: The ideal income for individuals is $95,000 a year for life satisfaction and $60,000 to $75,000 a year for emotional well-being. Families with children, of course, will need more.
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