Money is supposed not to buy happiness, yet humanity quickly added a "but" to that phrase. Of course, a bank account with a generous number is no guarantee of anything, but a recent study published by Purdue University adds an extra twist to this classic debate. The data suggests there is an "ideal annual salary" to achieve happiness, which varies drastically depending on the region we are in, and should not be exceeded, or it could cause the opposite effect.
It is a bit tricky to talk about personal finances, right? No matter the restrictions, cutbacks, effort, or discipline, money shoots off in all directions like the Dragon Balls after making a wish, and we have to re-enter the same monthly cycle to pay bills, stock the pantry, and basically put out every fire along the way. That said, what amount do you think would be right so you can breathe more easily? It is not easy to give an answer because an emergency or extra responsibility can always arise, but I imagine you already have a number in mind. Now, how about comparing it with the calculation made by a group of researchers at Purdue University?
The Ideal Income for Happiness
The study divides the results into two general categories: "life evaluation", a general measure of personal satisfaction (affected by higher goals and/or comparisons with other people), and "emotional well-being", which focuses on our daily feelings. Globally, the income that sets a "maximum" life evaluation is about $95,000 a year, while emotional well-being would be between $60,000 and $75,000.
Regional Variations
As expected, the amounts change by region. In Western Europe, the first parameter rises a bit, $100,000 to be precise, but the ideal emotional well-being is achieved with $50,000 a year. At the other extreme is Latin America: with incomes from $30,000 to $35,000 a year, happiness would be almost a given.
The Catch: More Money, More Problems?
The big asterisk accompanying this study's results is that the amounts are compatible with individuals, and should not be taken into account when there is a family in the picture (since all values rise). Even so, the most interesting thing is that happiness does not increase with earning more money, but rather the study suggests the opposite. By exceeding the life evaluation threshold, a person runs the risk of pursuing greater material goals and falling into a trap of constant social comparisons, which inevitably lead to stress and unhappiness. Personally, I'll only say this: if I earned $30,000 a year, I'd be playing guitar on the terrace, half-naked.
