Does Money Buy Happiness?
In an effort to measure the impact of money, a 2010 study differentiated between two types of happiness: emotional well-being and life evaluation. It defined emotional well-being as the day-to-day experience of emotions, and life evaluation as the perception of one's life as a whole. The researchers found that emotional well-being increases along with income, but levels off when one's annual salary hits around $75,000. Life evaluation, however, kept rising indefinitely. They concluded that "high income buys life satisfaction but not happiness, and that low income is associated both with low life evaluation and low emotional well-being."
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Key Facts In This Video
Beyond $75,000, American workers don't experience additional happiness with an increased salary. (0:21)
Giving money to others has been shown to increase happiness and overall emotional well-being. (1:30)
The ways in which money is spent also has a significant impact on a spender's happiness. (1:52)