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Massachusetts Consumers Note Income’s Influence on Happiness

Our personal bankruptcy clients often note that before their job loss or before their credit score reduction, they were quite satisfied. In a now famous study by Princeton University professors, the research shows that while happiness “rose steadily with annual income, the quality of the respondents’ everyday experiences did not improve beyond approximately $75,000 per year.”

“Beyond $75,000…higher income is neither the road to experienced happiness nor the road to the relief of unhappiness or stress, although hither income continues to improve individuals’ life evaluations.”
 
Professor Angus Deaton, an economist and Professor Daniel Kahneman, who won the Nobel Prize in Economics. Interestingly, however, 85% of Americans feel happy every day notwithstanding their income.
 
The study showed that a 10% rise in annual income moved Americans up in satisfaction the same amount, regardless of income. “High incomes don’t bring you happiness, but they do bring you a life you think is better,” the study says. The study of relative income and relative deprivation have been around since social scientists began their research.