Most people have heard some version of this: “Money buys happiness up to a point, then it doesn’t.” The research today is more nuanced: In their 2010 paper, Kahneman and Deaton wrote: “Higher income buys life satisfaction but not happiness.” New research argues that happiness may continue to increase with income for most people, but not equally for everyone. As Wharton researcher Matthew Killingsworth said: “For most people, larger income is associated with greater happiness.” Both may be true simultaneously: Money may continue to help, but additional profit per additional dollar Often shrinks—especially when your basics are already covered. So yes, diminishing returns exist – but money still matters.
This article was written by a Financial Horse contributor.
Table of Contents…
