How much money is enough to be happy (2024)

FAQs

How much money is enough to be happy? ›

Happiness is a six-figure salary: On average, Americans say they need $284,167 per year to be happy. Millennials are driving up the average. While the other generations say happiness is about $130,00 a year, millennials say they need $525,000 a year.

The Purdue study also included figures for being content at the “life evaluation” and “emotional well-being” stages. Globally, those were determined to be $95,000 and $60,000 to $75,000, respectively. It's important to keep in mind, though, that “happiness” is subjective.

Money plays a significant role in that for most people. If you go by a new survey of over 2,000 American adults published last week, they just found an answer to the question of how much money they need in the bank to be happy. An average American believes $1.2 million (R10 crore) is enough to make you happy.

The $75,000 Study

This belief is supported by a widely publicized 2010 study led by Daniel Kahneman and his Princeton colleague, Angus Deaton — both winners of the Nobel Prize in Economics — which concluded that happiness only increases with income up to $75,000.

An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.

Globally, the study found that the ideal income point for an individual is $95,000 for life satisfaction and between $60,000 to $75,000 for emotional well-being. In North America, the individual income level for life satisfaction was found to be $105,000 per year.

While ZipRecruiter is seeing annual salaries as high as $74,500 and as low as $67,000, the majority of $75000 salaries currently range between $69,500 (25th percentile) to $72,500 (75th percentile) with top earners (90th percentile) making $73,500 annually across the United States.

Americans say they'd need about $1.2 million on average to feel happy. Yet the number is highest for millennials, at almost $1.7 million. The findings come at a time when Americans are feeling more stressed by money, partly due to the impact of inflation, which has been elevated for more than a year.

Psychologists have long agreed more money can equate to more happiness — to a certain extent. Since a notable study published in 2010 by Princeton University's Daniel Kahneman and Angus Deaton, many have agreed that after about $75,000 a year, your happiness somewhat plateaus, even if your income increases.

For most individuals and small families, the answer to “Is $100,000 a good salary?” is a resounding “yes.” Cost of living and family size can affect how far $100,000 will go, but generally speaking, you can live comfortably on $100,000 a year.

Are wealthy people more happy? ›

“In the simplest terms, this suggests that for most people larger incomes are associated with greater happiness,” says Killingsworth, a senior fellow at Penn's Wharton School and lead paper author. “The exception is people who are financially well-off but unhappy.

You'll need to earn more than half a million annually to be considered among the highest earning residents in 11 states and Washington, D.C. "This comes down to cost of living," Murray said.

Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.

Millennials said in a survey they needed $525,000 a year to be happy. Here's what a Nobel prize winner's research says about money and happiness. On average, respondents to a new survey said they needed $1.2 million in the bank to be happy. Millennial respondents said happiness would come from a $525,000 annual salary.

Happiness depends on multiple factors, including personal values and needs. Income levels can positively or negatively impact both happiness and stress. Gratitude for other areas of life can create feelings of happiness regardless of a person's financial situation.

In a 2023 study by financial services company Empower, millennials reported needing to earn $525,000 a year to be happy. Notably, this is significantly more than the national median income of that age group, which is approximately $81,000 a year, according to a study by Scholaroo.