Money can certainly help you achieve your goals, provide for your future, and make life more enjoyable, but merely having the stuff doesn’t guarantee fulfillment.
This book will show you how to make the most of your money, but before we dive into the details, it’s important to explore why you should care.
The paper looked at the level of negative emotion reported by participants in the Panel Study of Income Dynamics — a long-running longitudinal survey of thousands of Americans.
People were asked how often they experienced negative feelings like nervousness, hopelessness or restlessness in the last 30 days (K9 scores).
The difference the marginal dollar makes in reducing negative emotions starts to fall off around $70,000, is very low by $160,000 and hits zero around $200,000.
Those results are remarkably similar to the correlations reported in a 2010 study that found that people don't get happier after ,000 a year.
And there’s a real danger that increased income can actually make you miserable—if your desire to spend grows with it.
But that’s not to say you have to live like a monk.
But research shows that our choices are based on more than just arithmetic—they’re also influenced by a complex web of psychological and emotional factors.
This chapter gives you a quick overview of the relationship between money and happiness.