How much money does someone need to earn in order to be "happy"
The amount of income required for an individual to achieve happiness while residing in the United States varies depending on their location; however, on the whole, it appears to be significantly higher than the average annual income earned by Americans.
Seems in the US, by achieving 88.8% to 111% of annual median income ($67521) are emotionally well, while 140% to 155% are enough for life satisfaction. Do you agree with this in your country? Annual Median Income in Malaysia in 2019 is about RM85116
In 2018, a global study published in 2018 examined the amount of money that appears to bring happiness to individuals, as well as the point at which money ceases to have an effect on their well-being.
Although "happiness" is a subjective concept, the study authors from Purdue University address this issue by evaluating emotional well-being, which pertains to an individual's daily emotions such as happiness, excitement, sadness, or anger. Additionally, they assessed life satisfaction, which refers to an overall evaluation of how well an individual is doing.
According to the study, the optimal income threshold for an individual to achieve life satisfaction on a global scale is $95,000, while the range for emotional well-being falls between $60,000 and $75,000. In North America, the ideal income level for life satisfaction was determined to be $105,000 per year.
In comparison, the average yearly earnings of a full-time wage or salaried worker in the United States is merely $58,260 as per the most recent data shared by the U.S. Bureau of Labor Statistics.
The median household income was $67,521 in 2020, a decrease of 2.9% from 2019, the U.S. Census Bureau reported.
The minimum salary needed to be ‘happy’ in each US state varies
The minimum annual salary needed to be satisfied or happy in each U.S. state was recently calculated by GoBankingRates.com, a personal finance and education website.
The website considered the cost-of-living index for each state and made use of the $105,000 amount established by the 2018 Purdue study as the "standard" for computation. It also took into account the unemployment and crime rates for each state.
As per the analysis, the states that required the lowest income to achieve happiness were Mississippi ($87,465), Kansas ($90,825), Oklahoma ($92,295), and Alabama ($92,295).
On the opposite end, individuals in Hawaii need to be earning at least $202,965 to reach a state of bliss, according to the website. In New York, the minimum salary needed to be happy was found to be $155,610, followed by California at $149,310.
The minimum annual salary to be happy in Michigan was found to be $95,865, Texas landed at about $96,705 annually, $99,015 for Illinois, $105,000 in Minnesota, $105,315 annually in Florida, $108,360 to be happy in Arizona, and $117,180 annually in Washington state.
Does happiness increase with income?
Another often-cited Princeton University study published in 2010 found a correlation between income and a person’s emotional well-being and life evaluation — but only to a certain level. The researchers found an increase in happiness alongside annual income up to about $75,000 before it levels off.
The study authors stated that "having a low income intensifies the emotional distress linked with unfortunate events like divorce, illness, and loneliness," and concluded that while a high income can purchase life satisfaction, it does not necessarily equate to happiness. On the other hand, having a low income is associated with low life evaluation and emotional well-being.
But a larger study published in 2021 found that well-being continues to increase with income, even beyond that $75,000 limit. The research from the University of Pennsylvania used surveys of 33,391 employed U.S. adults and found "no evidence" for an experienced well-being plateau above $75,000 per year.
"There was also no evidence of an income threshold at which experienced and evaluative well-being diverged, suggesting that higher incomes are associated with both feeling better day-to-day and being more satisfied with life overall," the study concluded.
Overall, both studies seemed to conclude that income can affect one’s happiness, at least to a point.
What other factors affect happiness?
While income is one of the factors that can impact happiness, there are several other factors that can affect an individual's happiness as well, including:
Social relationships: The quality and strength of one's relationships with friends, family, and community can significantly influence happiness.
Health: Good physical and mental health are critical components of overall well-being and happiness.
Personality: Some personality traits, such as optimism, resilience, and self-esteem, have been linked to higher levels of happiness.
Work-life balance: Finding a balance between work and personal life can be crucial to maintaining happiness.
Personal growth: Engaging in activities that promote personal growth, such as learning new skills or pursuing hobbies, can lead to greater life satisfaction and happiness.
Meaning and purpose: Having a sense of meaning and purpose in life, such as through work or personal relationships, can contribute to overall happiness.
It is worth noting that the importance and impact of each of these factors can vary for each individual, as happiness is a highly subjective experience.
Although happiness can differ from person to person, previous studies have sought to analyze the factors that can contribute to one’s well-being. Gender, income, married status, education level, job satisfaction, health education, and increased knowledge have all been cited as having a role in human happiness.
A 2016 study of 500 young people between the ages of 15 and 29 in Iran found a "significant relationship" between the happiness score and location in urban and rural, employment status, and physical activity. However, it didn’t find a "significant link" between gender, marital status nor education level with happiness.
This story was reported from Cincinnati.
NICE
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