How much is too much? Or rather, what amount of optimal income would make us happy and stress-free?
While tough to believe, a billion dollars ain’t it, and like everything else, diminishing returns will eventually kick in.
A 2018 study from Purdue University put the number at less than $100,000.
“That might be surprising, as what we see on TV and what advertisers tell us we need would indicate there is no ceiling when it comes to how much money is needed for happiness,” Andrew Jebb, a doctoral student in Purdue’s Department of Psychological Sciences, said in a statement. “But we now see there are some thresholds.”
While open to debate, Jebb and his colleagues place the ideal income point at $95,000 for life evaluation and $60,000 to $75,000 for emotional well-being, while noting those amounts are for individuals and would likely be higher for families.
Millennial mania
Yet the message doesn’t seem to be resonating, at least with younger generations.
Acupuncture blog recently surveyed 2,000 millennials to learn more about their stress levels, the impact stress has on their lives and how finances impact their levels of stress.
It found that 91% of respondents said a higher income would lead to them feeling less stressed.
It also found that 78% of millennials believe life is more stressful today than for previous generations and cite debt, a competitive job market and expensive healthcare as the top stress factors
“They say money can solve all our problems and according to the recent study, most millennials believe a higher income would make them feel less stressed,” according to the site.
Finances are the top stressors for both men and women.
“Despite feeling stressed out multiple times a week, only 12% of millennials regularly set aside time to de-stress,” the site concludes, while noting that watching TV or movies, listening to music and sleeping were top coping mechanisms.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.