Scientists have finally found out how much money a year it takes to keep an individual happy.
Researchers of Purdue University, Indiana, say that the wealth required for happiness differs greatly worldwide, with richer nations needing more to reach equilibrium.
They have set the income break-even between $60,000 to $75,000 for emotional well-being and $95,000 for overall life happiness.
The study, published in Nature Human Behaviour, defines emotional well-being as everyday feelings. By life satisfaction, it means a comprehensive assessment of how a person is doing, considering their higher goals and comparisons with others.
The average estimated income level for happiness was reached after surveying 1.7 million people across 164 countries. It was based on their purchasing capacity and responses to related questions.
The study finds that level of income matters more in wealthier nations.
According to it, the threshold for happiness with respect to overall life evaluation is the highest in Australia and New Zealand, where it increases up to $125,000.
Satiation income in North America, meanwhile, is reached at $105,000. It stands at $35,000 for people in Latin America and the Caribbean.
Education affects income satisfaction, gender doesn’t
Interestingly, despite extensive research, scientists couldn’t establish any significant link between income, happiness and gender. However, education does impact income satisfaction. A higher income induces greater life satiation and emotional well-being among people with high education, claims the study.
Monetary satisfaction reduces after hitting equilibrium
Researchers also claim that overall life satisfaction suffers a dip after people reach the optimal monetary level.
Money, they say is crucial in meeting primal needs and buying conveniences, but what thereafter?
People, after having met the needed income requirements, often start pursuing higher targets, usually in comparison to others, which impacts their well-being negatively, finds the study.