Everyone says that money cannot buy happiness. People say a lot of things, but they’re not correct always. Scientists say that there’s truly a perfect amount that can really make people emotionally satisfied. They also said that if you have too much money, you may start crewing back into the unhappy territory. Andrew T. Jebb, A psychologist from Purdue University said, “That might be surprising as what we see on TV and what advertisers tell us we needed would indicate that there is no ceiling when it comes to knowing much how money is needed for happiness, but we now see there are some thresholds,”
Jebb and his team analyzed data from an international survey, Gallup world poll which has more than 1.7 million individuals from 164 countries. When they examined the responses of the participants on questions related to life satisfaction and well-being, measures of what is called subjective well-being or SWB. After the survey, they found the magic number for income satisfaction. It is a global phenomenon and changes around the world Jebb said, “We found that the ideal income point is $95,000 for life evaluation and $60, 000 to $75,000 for life emotional well being. This amount is for individuals and would likely be higher for families.
Also, the global average hides how satiation points are notably higher in some countries than in others, mainly associated with how much wealthy each nation is relative. And if we talk about countries then life satisfaction costs $125,000 in Australia, $105,000 in North America and $100,000 in Western Europe. But only $70,000 in Southeast Asia, $45,000 in Eastern Europe $35,000 in Latin America. It’s affordable for men to be satisfied around the world than women because men need $90,000 when women want $100,000 for wellbeing.
Also according to the survey, $70,000 is all the low educated people wants and moderate education is $85,000 and people with higher education wants $115,000 perhaps the exceptional thing about the studies are how they highlight that once out have hit income satiation, you may want to freeze your earning capacity right there.
The authors explained, “Another important phenomenon within our data was the presence of turning points at which income levels after satiation saw consistent decrements in happiness, it has been speculated for some time that very high income may lead to reductions in SWB, authors noticed this phenomenon on in their own results, but noted it was only evident in terms of life evaluation, not emotional well being.”
And limited to just five of the nine regions considered in the study; Scandinavia, the Balkans, East Asia, The Caribbean and Northern America. As for why the pattern is not found elsewhere, we don’t know for sure, but the searchers theorized it’s associated with the demands that come with high incomes. The researchers wrote,
“Theoretically, it is presumably not the higher incomes themselves that drive reductions in SWB, but the costs associated with the high incomes are usually accompanied by high demands time, workload, responsibility and so on that might also limit opportunities for positive experiences.”
And if it is the case, it gels with a lot of other research that’s shown money buys happiness but only if you have free time to enjoy it and can spend it on the right things and not prioritizing money over time.