Turns out money does buy happiness

New research shows that money can indeed buy happiness. The United States study found that personal wellbeing does not increase with incomes over US$75,000, emotional experience does. The study was conducted by Proceedings of the National Academy of Sciences (PNAS), tracing over one million real-time reports of experienced wellbeing.

Wellbeing increased with income, with a steep slope above and below the US$80,000 mark. Higher incomes improve day-to-day wellbeing, rather than hitting a plateau for many in wealthier countries. Higher incomes were associated with both feeling better in day-to-day life and also being more satisfied overall.

The researcher said that while there may be a point beyond which money loses its power to improve wellbeing, that point may be higher than once believed.

Read the full studies, Experienced well-being rises with income, even above $75,000 per year by Matthew A. Killingsworth and High income improves evaluation of life but not emotional well-being by Daniel Kahneman and Angus Deaton