The more you earn, the happier you are? | Does your salary determine your happiness level?

Today’s topic is gonna be about “The more you earn, the happier you are?" and whether is that true. In my blog I have written an article about how much you need to be earning to be happy.

 

Read more: How much money do you need to be earning to be happy?

This topic is very much relevant today to me because after the pandemic and after working full-time, most of my friends talk about their salary quite openly and how much they are earning each month.

Some complain that it is not enough while I do have a small handful of friends who say that they are not sure what to do with the surplus of money in their bank account. Singapore is an expensive country even though we recently lost our spot at the top. Our property and cars cost are high but on the other hand, our food and public transport can be considered as relatively affordable. So does it mean that the more I earn, the happier I will be? Because then I will be able to buy more things which = happier.

More money can buy you more happiness but only a certain amount

Psychologists from Purdue University and the University of Virginia analyzed World Gallup Poll data from 1.7 million people in 164 countries, and cross-referenced their earnings and life satisfaction. The study found that once that threshold was reached where the ideal income for individuals is $95,000 a year for life satisfaction and $60,000 to $70,000 per year for emotional well-being, further increases in income were actually associated with reduced happiness. The researchers defined life satisfaction as an overall assessment of how one is doing, while emotional well-being refers to a person’s day-to-day feelings such as happiness, sadness, excitement or anger.

Bill Gates also mentioned that money can buy you happiness except there is definitely a threshold and not like you need 1 billion dollars to be happy. Not having to worry about your daily essentials and healthcare or education can significantly make you happier as you are not constantly having to think about whether you can afford if anything were to happen.

Being free from worry about financial things is a real blessing - Bill Gates

Money can buy you happiness especially if you spend it on others.

Giving others things and spending money on them can give you happiness as you feel that you can use the money that you have earned to bring happiness to the people around you. For example, when you got your first pay cheque, the meal you bought for your parents, the gifts you got for them and also the travels that you brought them along. With more money, you not only feel happier but more so because you can spend it on the people around you making them happier as there are new experiences for them.

Learning to scrimp and save

For me, my starting pay is definitely lower than the the median salary of $3600 per month for fresh graduates and I think knowing that you are earning much lower than your peers gives you an indication that you will have lesser amount that you can save from your pay. With that in mind, starting with a lower pay has made me learn to scrimp and save more on areas that I am able to do so.

If I were to be earning more, I might not earn to save as I am right now but definitely, I believe that if I am earning more, I will be happier, this is because there are some material items/experiences that need money to be fulfilled referencing back to money can buy you happiness especially if you spend it on others.

The more money = the happier you are

There are also others who dispute the theory that there are limits on how much happiness money can buy. According to a research published in 2013 in the American Economic Review by economists Betsey Stevenson and Justin Wolfers, "There is no tipping point, the relationship between well-being and income is roughly a linear-log and does not diminish as incomes rise, if there is a satiation point, we are yet to reach it.” Every individual is different in terms of how we view money to some, money helps to open more 'doors', opportunities for them whereas some feel that money is the root of all evil and having too much can breed distrust and greediness among their companions.

For me, money is important especially in today's world because it is a way of expanding your horizons and being able to do the things you want. We work hard to earn enough for a roof over our head and to put food on the table, with our future being quite in the unknown, I definitely feel that more money would make me happier but to be honest, I would think that having to manage a huge sum of money can be stressful. There is a tipping point between the amount of money earned and your happiness. A 2010 study out of Princeton University found that there’s a correlation between happiness and wealth, to a point of about $75,000 per year. When people make more than $75,000 a year, their happiness doesn’t increase, but the lower their income is the worse they feel, the study found. I haven't reached this tipping point yet and am striving towards it! Hope you have enjoyed today's video, do hit the like and subscribe button for more content from me.

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https://www.cnbc.com/2020/05/26/how-your-salary-and-the-way-you-spend-money-affect-your-happiness.html
https://www.cnbc.com/2019/09/05/can-money-buy-happiness-debate-study-on-success.html
https://www.marketwatch.com/story/this-is-exactly-how-much-money-you-need-to-be-truly-happy-earning-more-wont-help-2018-02-14
https://www.cnbc.com/2019/02/25/bill-gates-says-wealth-made-him-happier-but-you-dont-need-a-billion.html