Study By Nobel Prize-Winning Economist Agrees Money Can Buy Happiness

The adage "money can't buy happiness" is difficult to learn because many people find that after becoming wealthy, their happiness actually decreases.

Some claim that the saying "people go broke to feel better about not having enough money" is true.Then again, there are those who live their entire lives adhering to this proverb and swear by it.

The relationship between wealth and happiness is incredibly personal. The old proverb, which many people have come to believe over many generations, has now been completely refuted by a new study. Here's what the study revealed.?

New study suggests money can indeed buy happiness?

According to a recent study, most Americans believe that having money makes them happier.Daniel Kahneman and Matthew Killingsworth, respectively from Princeton University and the University of Pennsylvania, conducted the study.?

The two did some number crunching and came to an unexpected result.They discovered that happiness tends to rise as income and earnings increase.

According to Kahneman's research from 2010, the trend typically reverses once an individual's income reaches about $75,000, though. However, the most recent research has found that even after incomes surpass $75,000, having more money does appear to make people happier.?

According to New Scientist, Kahneman's study was based on survey information from 1000 US citizens who participated in daily happiness surveys between 2008 and 2009.Data from Kahneman and Killingsworth's most recent discoveries have now been published in the journal Proceedings of the National Academy of Sciences. It goes against what they discovered more than ten years ago.

The economist compared emotions with people's income

This time, 33,000 Americans were interviewed, with the lowest salary being $10,000 per year. According to reports, they were located using a smartphone app that showed the subjects' moods throughout the day.The two then calculated data by comparing these emotions to the person's income. Eventually, the two came to the realisation that people making even up to $500,000 a year felt generally content, according to CBS.

According to Killingsworth, as simply put, this suggests that for the majority of people, higher incomes are correlated with happier lives. The exception is those who are prosperous financially but unhappy.??

For instance, more money won't make you happier if you're wealthy and unhappy. For everyone else, having more money was, in varying degrees, related to being happier.?

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