I read the original text from the research paper that eventually got published in Science. Actually, the paper seems more an exploration of surveying techniques than anything conclusive on whether more momey makes you happier.

But, my problem with most of the surveying on this issue of money and happiness, is that researchers are generally focusing on income, and as the paper points out, folks at higher income levels are typcially devoting more of their time to work – the work necessary to achieve high income – rather than play. So, their “happiness” is not much greater than if they were middle-income, because the added work and stress can offset the added utility of the higher income.

Anyhow, what if these researchers focused on wealth, instead of income? What would be the results? Are millionaires happier than the middle-class. Are middle-class people with little debt, solid retirement savings, and money in the bank happier than middle-class people who are leveraged to the hilt, constantly blowing money on material goods, etc.?

Income really doesn’t tell the whole story. Plus, what about future happiness. Wealth may not matter at a certain point in one’s life, but as people age, having the ability to support a family, put kids through college without mortgaging their future, and retire in comfort… those things could add up to some cumulative extra happiness over time.

But, we don’t have to think in those extremes. Frankly, if I found an extra few million in my bank account tomorrow, I’d have a pretty good idea what to do with it and how to manage it and I think it would change my life for the better. I would be happier – perhaps even significantly happier. In my experience, people with substantial money are by and large happy, well-adjusted folks. They usually worked hard for it, realize how fortunate they are, generally don’t flaunt it, and try to stay grounded. So, I’d like to think that if the man dying of thirst were given gradually increasing levels of fresh water, that eventually he could learn swim and thrive in it.

Ironically, it’s the in between folks who seem to have the most warped money issues – professionals who are high earners, high debt, and low networth. Many of these people are extra-sensitive about keeping up with the Jone’s. In those cases, chasing after money does appear to be a curse. But, it’s not the fact that they have money, it’s how they value it, what it means to them, and what they do with it. Money itself isn’t the issue.

There is a break point where enough money is essential, the rest is just extra. If things rule your life, then the money to have things has to be there. Happiness comes from a variety of sources.

Depending on what you value, more money has negligible value toward effecting additional happiness.

Someone dying of thirst is suddenly thrown into a tank of fresh water and will drown. Too much of any one thing doesn’t make anyone happier.

Warren Buffett is happy overall and would still be happy if he had 99% less of the total wealth he now has (as long as he didn’t lose 99% of the money – as if it was never there in the first place).

It comes down to having balance in life after everthing else is satisfied to elevate the degree of happiness experienced.

Since security is pretty important to most people, the higher percentages of “Not too happy” at lower income levels makes sense.

As for the “under 20K” group, I wonder how many of these are students? I suspect the unhappiness factor would be higher if students, new immigrants, and others who are “temporarily poor by choice” aren’t in the data.