How much Money do You Need to be Happy?

Can money buy happiness?

Some say money cannot buy you happiness. Yet studies have suggested that money can, in fact, buy you happiness—to an extent.

A survey of more than 33,000 employed US adults and more than 1.7 million sampling reports discovered a direct connection between higher incomes, feeling better day-to-day and being more satisfied with life overall.

The study data suggests that happiness actually increases the higher a person's income rises. The study raises the point that the more money we make, the happier we become (or rather, we have the means to buy the things or experiences that in turn make us happy). Poverty can amplify the experience of misfortunes and stressors. In other words, lower income levels may increase perceptions of unhappiness or other negative emotions. 

In fact, people are driven by different values. For some, value lies in power; others find value in security or self-care.

"A person who is driven by power might have different financial needs than someone who is driven by security," licensed mental health therapist Billy Roberts  explains. These factors can affect a person's happiness or perception of happiness, altering the amount of money they truly need to feel satisfied emotionally. 

"At the end of the day, the salary should support a value-driven lifestyle," Roberts explains, "so the number is less important than that number allowing a person to drive in their 'values lane,' so to speak." 

On the other hand, some individuals with higher salaries may not be able to enjoy small pleasures in life due to stressful and time-demanding jobs. A recent study found that US employees making more money experienced significantly higher levels of stress—up to 68% more for top earners taking in over $200,000. While these higher incomes buy pleasures such as nice vacations and meals at restaurants, stress can play a key factor in one's overall happiness. 

The connection between money and happiness is not just a feeling or perception: there is a science behind the phenomenon. "From a neuroscience perspective, scarcity of money and resources signals to our brain that there is a threat to our survival," Renetta Weaver, doctor of metaphysics and licensed clinical social worker, says. In fact, poverty can influence a person's cognitive function, altering the way they think and reducing performance in verbal memory and processing speed. 

If we do not equate money and things to our worth and value, we find happiness in the things that money cannot buy such as quality time and experiences with oneself and others.

Milana Perepyolkina, international bestselling author of two books about happiness, adds that people confuse pleasure with happiness, meaning correlations between salary and emotional well-being may not be accurate. Happiness is intrinsic.

Perepyolkina notes that even certain people "who live in very poor conditions, such as makeshift plastic tents with all of their possessions fitting in one bag, you will notice joyful, bright smiles," she says. "How can someone who has almost nothing be so happy? This is because they are grateful for what they have: their life, their family and their community."

While happiness can rise or fall with income levels, a person's true sense of emotional well-being will ultimately depend on their life circumstances, values and personal needs.