Have you ever wondered if making more money would make you happier? That may seem like a silly question. Of course making more money would make you happier, right?
Well, maybe, but only up to a point.
A new analysis conducted by Advisors Perspectives approximates how much money citizens in each U.S. state must make to reach a certain level of happiness before greater income no longer affects how happy they are.
The Wall St. Journal summarizes it best:
It turns out there is a specific dollar number, or income plateau, after which more money has no measurable effect on day-to-day contentment.
The magic income: $75,000 a year. As people earn more money, their day-to-day happiness rises. Until you hit $75,000. After that, it is just more stuff, with no gain in happiness.
But $75,000 won’t work across the board. The number actually varies from state to state depending on the cost of living and other factors.
In a state like Hawaii where the cost of living is exorbitant, higher income up to $122,000 affects happiness. In Mississippi, the state with the lowest cost of living, the number is only $65,000.
For Alabamians, that number is $69,300 per year, the eighth lowest number in the country.
But it’s also important to step back out of the American culture of rampant consumerism and realize what these numbers look like compared to the rest of the world. According to GlobalRichList.com (go check that site out), making $69,300 per year would place you squarely in the top 0.13% of the richest people in the world by income.
This Max Lucado quote is worth remembering, too:
When you are in the final days of your life, what will you want? Will you hug that college degree in the walnut frame? Will you ask to be carried to the garage so you can sit in your car? Will you find comfort in rereading your financial statement? Of course not. What will matter then will be people. If relationships will matter most then, shouldn’t they matter most now?
So what do you think, Alabama? Does making more money make you happier? Only up to a point? Not at all? Let us know in the comment section below or by tweeting @YHPolitics.
Follow Cliff on Twitter @Cliff_Sims
