Don’t Indulge. Be Happy!

I saw an article in the New York times called Don’t Indulge. Be Happy. The article asks a very straightforward question: How much money do you need to be happy? Think about it. What’s your number? Elizabeth Dunn, an associate professor of psychology at the University of British Columbia and Michael Norton, an associate professor of business administration at Harvard Business School, are the authors of the forthcoming book  called “Happy Money: The Science of Spending.”

You may ask yourself-what is the magic number? Well, according to their research the magic number in the United States falls somewhere around $75,000. Using Gallup data collected from alost half a million  Americans, researchers at Princeton found that higher household  incomes were associated with better moods on a daily basis-but the beneficial effects of money tapered off entirely after the $75,000 mark.

Here’s a great insight from their research:

In research we conducted with a national sample of Americans, people thought that their life satisfaction would double if they made $55,000 instead of $25,000: more than twice as much money, twice as much happiness. But or data showed that people who earned $55,000 were just 9 percent more satisfied than those making $25,000. Nine percent beats zero percent, but it;s still kind of a letdown when you were expecting a 100 percent return.

Very interesting! I’ll see if I can get an advance copy of the book and will do a follow up book review! What do you think-what’s your magic number?

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Dansette