Researchers Say Happiness Costs $75K

SpuriousLogic writes "Does happiness rise with income? In one of the more scientific attempts to answer that question, researchers from Princeton have put a price on happiness. It's about $75,000 in income a year. They found that not having enough money definitely causes emotional pain and unhappiness. But, after reaching an income of about $75,000 per year, money can't buy happiness. More money can, however, help people view their lives as successful or better. The study found that people's evaluations of their lives improved steadily with annual income. But the quality of their everyday experiences — their feelings — did not improve above an income of $75,000 a year. As income decreased from $75,000, people reported decreasing happiness and increasing sadness, as well as stress. The study found that being divorced, being sick and other painful experiences have worse effects on a poor person than on a wealthier one."

Re:This is painfully obvious.

[shentino]

I get only $8088 a year in income from SSI.

Of course, I also get food stamps, and make use of Section 8 rent subsidies, so my effective income is probably a little higher.

I'm still well below the 75k mark, but then again I'm not paying in sweat to get it either.

I even have $1400 in credit available, thanks to a couple of credit cards.

I'm fairly happy.

Re:Mathmatics of dissatisfaction

[Anonymous Coward]

I worked my ass off to put myself through school without a loan. Doing support on the university's helpdesk in the evenings (getting some homework done during slow times), doing coding jobs on the side through a business I started, doing various other odd jobs (and to all the smartasses who are going to say it... no, none were sexual jobs)... my week days were generally 7 am to 2 am. I'm not saying it was fun, it was 5 years of a lot of hard work and pure hell, and I could definitely have had a higher GPA than 3.06 at graduation had it not been for all the work.

But the last 10 years since I graduated have sure felt pretty damn good without that debt.

Re:cheap shot

[spun]

Well, according to this research, taking money away from those making quite a bit more than $75k per year and giving it to those making quite a bit less would raise total happiness. Let's reverse the policies of upwards wealth transfer put into place by the wealthy. Let's go back to the 90% marginal tax rate on the highest earners we had in the 50s. The system worked better for them, they should pay more because they got more from society. Let's stop letting the rich set policy that benefits them at our expense. We need to re-transfer the wealth they have spent the last fifty years "transferring" to themselves. Remember, taking back what was stolen from you is not stealing.

Re:This is painfully obvious.

[clang_jangle]

Security AND Freedom. Weren't these enshrined in the US Constitution ?

Yes, but only for white land-owners. The sad reality is that we don't have and hopefully don't want our literal forefathers' vision today. Makes for effective rhetoric though, with so many ignorant of history...

Re:Double what you are earning

[Trepidity]

Man, if $75k is poverty in NYC then 2/3 of NYC lives in poverty! Is it really the case that only the top third of New Yorkers can be said to be non-poor?

(The median income for the city is $48k, fwiw. Even for Manhattan, the median is $65k.)

Re:This is painfully obvious.

[shentino]

I have almost unlimited free time.

I also happen to be a 25 year old geek with too much time on his hands. Besides reading slashdot, I also work on a few projects at SF.

Re:This is painfully obvious.

[ProfBooty]

All depends on where you live. In the DC area you have 5/10 richest counties in the nation. For example my county has 2.7 million people with an average income of 107k.

http://en.wikipedia.org/wiki/Highest-income_counties_in_the_United_States [wikipedia.org]

As a result, housing, food etc are all priced higher than most other places. Plus the taxman considers you to be "wealthy" so just because you have a higher cost of living, salary's are raised accordingly, and you have to pay higher taxes too.

Re:This is painfully obvious.

[operagost]

Right. Then, you just take the money from the people making $75K to pay for your treatment.

Re:And I don't want it either.

[Anonymous Coward]

That's because women become obese when they don't need to attract a man anymore.

Re:Mathmatics of dissatisfaction

[gotpaint32]

Well lets break down the AC's self righteous gloating. He said its been 10 years since graduating so he graduated around 2000, he says he was in school for 5 years so he started college around 1995. Now let's take a look at this: http://en.wikipedia.org/wiki/College_tuition#Disproportional_inflation_of_college_costs [wikipedia.org] and you will see how divergent cost of attendance has become to the standard inflation rate. Furthermore if you take into consideration the oversupply of college graduates, erosion of earnings potential for a 4 year degree and extremely limited job market then its pretty clear its almost impossible for most students to be able to work off their tuition/room board/etc while working college jobs. Sure it may be possible to go to night school and work a full time job but that significantly limits your choice of schools and coursework.Taking less credits each year is another option but that may mean you are taking the 6 or 7 year plan to graduation which is ultimately not worth it when you consider the lost earnings potential (unless you are working towards a degree within your current field of work).

Re:Double what you are earning

[Anonymous Coward]

GP exaggerated, of course. NYC's Bronx is the poorest of its 5 borough divisions. Gentrification is forcing lots of people to move there for cheap rents. Gov't Housing assistance meant around $1500/year apartments (yes, YEAR.) in the Bronx 10 years ago. Of course, very, very few qualify and most probably cheat on their income reports anyway.

Housing in NYC is as high as 1/3 of your gross income. Mine ranged from $25,000 to $48,000/year working tech/callcenter jobs the past decade. Prices for apartments in slummy Bronx areas if you're moving in today cost about $11,000/year ($900/month), though my father pays about $4000/year less in a 15-year old lease.

Anyway, in Manhattan, rents cost $1200 to $1500 per month (14400 to 18000 a year). All these rates are for a one measly bedroom, btw. A $7/hour receptionist job for 1820 yearly hours (no vacations and the annoyingly common 35-only paid hours per week) cannot get you new rent there, since it's only $13000. Problem? lots of my immigrant families either cheat govt paperwork to get tax payouts or rent discounts, move to Brooklyn or the Bronx and share rent with a significant other, or prior to the recession, got a second self-employed gig in a semi-skilled trade. We are lucky to have an 8 year lease that was only $990 (around 12000/year) since our household salary is now $40000. Buying food out, paying the ~$1000 public transportation fee, which will soon stop being unlimited rides, $1500 yearly for cable/internet still leaves expensive food prices (estimate $5000 a year from supermarkets, without take out or holiday celebration money) and 8% local tax. Gas/power is about 1200 a year while water / trash disposal is included in the rent. Monthly rent goes up about 2.5 to 5% depending on the anual- or 2-year renewal choice. We are comfortable, but would love a two bedroom apt. and a nicer neighborhood. Unfortunately, I caanot see most of my family still in Manhattan remaining here 20 years out, as they retire and their income halves (cleaning staff is strained/on surgery/carpal tunnel problems a lot more than you would think and their health insurance probably loses steam after retirement)

Re:This is painfully obvious.

[trentblase]

Well, if what he says is true (25 years old and living on SSI) then yes, he is either (1) totally or partially blind; or (2) has a medical condition that keeps him from working and is expected to last at least one year or result in death.

I guess (3) has faked one ore more of the above -- could also be true.

Re:cheap shot

[spun]

Wikipedia is a good place to start, these being contested viewpoints the scholarship on the articles is impeccable and the citations are numerous.

http://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States [wikipedia.org]

http://en.wikipedia.org/wiki/Income_inequality_in_the_United_States [wikipedia.org]

Re:Mathmatics of dissatisfaction

[Dogtanian]

Nice smartass comment, but you're aware that there is a "post anonymously" checkbox and many good reasons why one might not always want to post under their account name?

Re:Mathmatics of dissatisfaction

[Anonymous Coward]

I've been paying down Sallie Mae -- down from $85k to $42k in 18 months. I'm 13 years out law school, am presently working 2.5 7 hour days per week, and earning just a smidge over $100k/year. I could earn a whole lot more, but I'd rather be time-rich than money-rich, and the money I do make is plenty good to support my off work fun. I went to a decent regional law school, but certainly not one of the ivys. Law school isn't a total scam, at least not for everyone.