Do you really know? How much money makes you happy?
Aug 13, 2025
Does money really lead to happiness? Researchers reveal a strong link, especially for those earning under £40,000, where doubling income can significantly boost joy. But there's a twist: once you hit around £120,000, happiness plateaus, suggesting more money doesn't always equate to more happiness. While financial security can reduce stress, true happiness often springs from meaningful relationships and experiences. The fascinating dynamics of income and joy are explored in this engaging discussion!
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Diminishing Returns Of Income
- Money increases happiness most at low incomes and with diminishing returns as income rises.
- Professor Jan-Emmanuel De Neve shows you need to roughly double income each step to get the same happiness boost.
Where Happiness May Plateau
- The happiness plateau claims that above a certain income more money stops raising happiness significantly.
- Different studies place that point between roughly £75,000 and £120,000, so evidence is mixed.
Happiness Predicts Future Earnings
- Happiness can predict future income even after accounting for IQ, health and height.
- Andrew Oswald suggests happier people focus better and win more promotions and opportunities.