Study confirms: income increase results in greater satisfaction and proves money can buy happiness.

Money can actually buy happiness, according to a team of scientists including a Nobel Prize-winning psychologist. The correlation goes beyond the salary threshold of USD 75,000 per year. Satisfaction increases along with income and it even accelerates when salary exceeds $100,000 a year, as long as the person has a certain basic level of happiness to begin with. The results contradict a famous 2010 study by psychologist Daniel Kahneman and economist Angus Deaton which revealed that happiness increases with income until the relationship begins to “flatten out” between $60,000 and $90,000 a year. However, Kahneman re-examined his work in collaboration with Matthew Killingsworth and they found that there is no point of happiness stability. Their new paper, which they describe as a “contradictory collaboration,” found a level of stability, but only among the unhappiest 20% of people, and only when they start earning more than $100,000. For all others, more money means more happiness, at least to some degree. However, the researchers found that the overall emotional effect of more money on a person is small compared to other circumstances, even something as simple as two days off at the end of a week. The study surveyed employed adults between the ages of 18 and 65 living in the US, with a median age of 33 and a median household income of $85,000 per year. Although the survey included participants with incomes above $500,000, the researchers said it was impossible to say definitively that the effect was present for people who earn more than that.

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