Study Reveals Stronger Link Between Wealth and Happiness

 A recent study conducted by Matt Killingsworth, a senior fellow at the Wharton School of the University of Pennsylvania, has found an increasingly positive correlation between money and happiness. Killingsworth's research, which is part of his large-scale project, trackyourhappiness.org, sampled 33,269 employed US adults aged 18-65 with annual household incomes of at least $10,000. Participants were asked to rate their life satisfaction.

In addition to this, Killingsworth incorporated data from the ultra-wealthy, individuals with a median net worth between $3 million and $7.9 million, a demographic that is often underrepresented in such studies.

The study, titled "Money and Happiness: Extended Evidence Against Satiation," revealed that the happiness gap between wealthy and middle-income individuals is significantly wider than the gap between middle- and low-income individuals. According to Killingsworth, “The difference in life satisfaction between the wealthy and those with incomes of $70-80,000 [per year] was nearly three times as large as the difference between $70-80,000 [per year] and the average of the two lowest income groups.”

Interestingly, the study also found that wealthy individuals were significantly happier than those earning over $500,000 annually. Killingsworth noted that while money is only one factor contributing to happiness, large differences in income can lead to substantial differences in happiness.

These findings challenge a widely covered 2010 study that suggested happiness increases with income but plateaus at around $75,000. Killingsworth's research indicates that the relationship between money and happiness is more profound, with a greater feeling of control over life being a major factor. He explained that about 75% of the association between money and happiness can be attributed to this increased sense of control and freedom to live the life one desires.

Killingsworth's interest in studying happiness stems from his desire to understand how to improve life quality. He believes that while money is a significant factor, it is just one part of the overall equation for happiness. His long-term goal is to explore what changes individuals, families, organizations, and societies might make if they took happiness more seriously.

“What would we do differently if we took happiness seriously? As individuals, families, organizations, and societies? It’s a long-term question, and not one that we will instantly have perfect answers to,” Killingsworth said.