More than 10 years ago, researchers suggested that money can buy happiness, and that it costs about $75,000 a year. A new study published in Proceedings of the National Academy of Sciences says that happiness continues to increase past that threshold.
The recent study was conducted by Matt Killingsworth, a senior fellow at Wharton School for Business at the University of Pennsylvania. His study is based on 1,725,994 samples pulled from 33,391 employed adults in the United States. He collected the samples using an app he designed called Track Your Happiness.
The research has shown that an increase in earnings has a positive effect on the growth of other forms of well-being. And there is no threshold after which money loses its value.
According to Killingsworth, people with higher incomes feel happier as they have better control over their lives.
The study also found that people who linked personal success to money were unhappy. Therefore, we should not allow self-esteem to depend on earnings.