More money tends to make you happier – even if you’re already rich, an Ivy League researcher finds – NBC Los Angeles

While a wealth of research has confirmed that wealthier people tend to be happier, a new paper by Matthew Killingsworth, a research fellow at the University of Pennsylvania’s Wharton School, further proves this hypothesis. His research finds that the connection between your salary and your happiness is extremely true across a wide range of incomes.

“The shape of this relationship “It’s remarkably systematic,” Killingsworth tells CNBC Make It. “There doesn’t seem to be a particular point at which money no longer plays a role.”

Killingsworth’s newly published research builds on some of his previous findings on the relationship between income and happiness and confirms the positive relationship between money and life satisfaction. Furthermore, it shows that the psychological impact of more money is relatively the same across all income brackets.

In other words, if a person making $200,000 a year and a person making $50,000 both receive a 20% raise, the relative increase in their happiness will most likely be about the same.

However, for low earners, the pay increase could have a larger material impact. They may go paycheck to paycheck to save each month, while the higher earner may simply expand on the experiences they’ve already enjoyed. But when you quantify their joy, the raise has about the same effect, Killingsworth says.

Of course, a number of other individual factors can also influence your overall well-being.

“Money is one of many variables [in] the equation for happiness, and no single variable dominates,” says Killingsworth.

Everyone needs a “happiness portfolio”

These findings could make it tempting to seek a higher salary.

“When people make more money, they feel like they have more control over their lives — essentially, they have more freedom to do what they want to do,” says Killingsworth.

But the way you make extra money could actually be detrimental. Ultimately, it’s not about what you buy or how much you spend, but “about being able to live the life you want to live.”

If earning more money means sacrificing time with loved ones or hobbies in your free time, there’s a good chance that extra money won’t make you happy.

“Every person needs a happiness portfolio because there are many different things that are important for happiness,” says Killingsworth. “Money seems to matter, and I think maybe a little more than we previously thought, but it’s also just one of many things that seem to matter.”

Your happiness portfolio can include a variety of factors, such as your home, your relationships, and your career.

Killingsworth also suggests determining an income level that you can achieve without sacrificing too much. How can you maximize your earnings while doing something you enjoy?

If your career offers opportunities for advancement, “it may be worth considering.” [about] “Work a few extra hours a week to ultimately earn a lot more,” he says. Such a trade-off might be worth it, considering how much of an impact the higher salary could have on your life satisfaction.

On the other hand, if you are pursuing a career solely for the high income prospects and you are not happy with it, salary alone is unlikely to bring you the happiness you desire.

“Earn what you can and then seek happiness in other aspects of life, and it will be entirely possible to live a truly happy life,” says Killingsworth.

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