The Price of Happiness

Is There a Magic Number?

We don’t talk enough about the cost of contentment. Not the kind you fake on Instagram. I’m talking about real, rooted, sleep-well-at-night happiness. The kind that doesn’t vanish after the excitement gained from a new phone or the fresh promotion wears off. Is money truly linked to our happiness—or is the old saying still right, that Money can't buy your happiness?

Is there a number that lets you breathe easier, stop grinding every second, and finally feel like you've arrived? Somewhere between rent going up, groceries doubling, and your news feed flexing luxury cars and getaways—it’s easy to feel like you're always behind, no matter how hard you hustle.

Forget the fairy tales and TED Talks. We're diving into what science, society, and lived experience are really saying about the price tag on peace of mind—and why most of us are still coming up short.

Back in 2010, a study by Nobel Prize-winning economists Daniel Kahneman and Angus Deaton shook up the world with one bold statement: people’s day-to-day happiness rises with income, but only up to about $75,000 a year. After that, it levels off. That number became gospel for a while. But like everything else in this hyper-speed world, science evolved.

More recent research by Matthew Killingsworth and a joint analysis in 2021 suggested something different: for most people, happiness does continue to rise beyond $75,000. In fact, for many, it keeps rising well into the six figures. Killingsworth's study, published in the Proceedings of the National Academy of Sciences, found that emotional well-being improves linearly with income up to at least $200,000.

But—and this is key—there’s a catch. People who are already unhappy? Their emotional state barely improves after that $100K mark. Money may ease discomfort, but it doesn’t heal emotional wounds.

That’s the paradox of our time. We want more, expect more, and yet feel less.

Welcome to the hedonic treadmill... It’s the psychological term for what happens when you finally get that promotion, buy that dream car, or upgrade your kitchen—and after a short high, your happiness slides right back to where it started.

We adapt fast. It’s a survival mechanism, but in modern society, it means we’re always chasing the next fix. Google offers the hedonic treadmill suggests that the constant pursuit of happiness through external factors like material possessions or achievements may not lead to lasting fulfillment because of this adaptation process. 

Now mix that with social media. Everyone’s highlight reel becomes your measuring stick. You start comparing your behind-the-scenes to someone else's vacation photos. Cue the anxiety, cue the debt, cue the second job just to keep up. And we wonder why burnout, depression, and relationship dissatisfaction are at all-time highs.

The pressure to "keep up with the Joneses" has gone digital. We're not just comparing with our neighbors anymore. We're competing with influencers, tech bros, and strangers with seemingly perfect lives. It’s exhausting.

And what does it cost us?

Well, according to the American Psychological Association, financial stress is the leading cause of anxiety in the U.S. Nearly 72% of Americans reported feeling stressed about money at least some of the time in 2023. Marriage? Strained. Parenting? Complicated. Friendships? Replaced by DMs and likes. Meanwhile, job satisfaction is declining, and workplace burnout is climbing, especially in sectors that demand constant output but give little meaning in return.

It goes deeper. Studies from the World Health Organization show that chronic financial stress has been linked to higher rates of cardiovascular disease, depression, and even PTSD. The psychological toll of poverty and economic insecurity erodes not just peace of mind, but the very biology of how our bodies function. We’re not just emotionally taxed—we’re physiologically depleted.

Children are growing up surrounded by stuff—tablets, phones, more toys than they know what to do with—but are spending less time in the sun, with friends, or just... being kids. Researchers at Stanford and UCLA found that regular screen time beyond three hours a day in children under 13 is linked to decreased emotional resilience and lower self-esteem. More tech, less touch. More access, less connection.

Even adults aren’t immune. We’ve swapped silence for noise, presence for productivity. Many of us can’t remember the last time we took a walk without our phones. We’re living so fast we forget to live at all.

And spiritually? That’s a conversation worth having. According to Pew Research, while formal religious affiliation has declined over the past decade, spiritual practices and a longing for deeper connection remain. People may be leaving the church, but they’re not done searching. Meditation apps are booming. Mindfulness retreats are sold out. Faith hasn’t disappeared—it’s just changed its outfit.

So what actually makes people happy?

Science has some answers. A Harvard study that tracked people over 80 years found the number one predictor of long-term happiness wasn’t money, fame, or career success. It was relationships. Close, supportive, meaningful relationships. Period.

That study—the Harvard Study of Adult Development—followed participants across decades and discovered that those who reported stronger relationships were not only happier, but physically healthier, with lower risks of chronic illness and longer lifespans. It’s not just about having people around. It’s about having people who show up for you. Who listen. Who matter. Emotional connection turns out to be more powerful a paycheck.

In fact, loneliness and isolation—what some experts call the “new smoking”—has been shown to increase the risk of early death by 26%. The U.S. Surgeon General declared loneliness a public health epidemic in 2023. People are literally getting sick from being emotionally disconnected. That speaks volumes about the kind of society we’ve built—one where we’ve got more connectivity than ever, but less connection.

We’re also seeing a rise in what psychologists call “relational poverty.” This isn’t just about being broke—it’s about being emotionally bankrupt. You can have a great salary, a shiny home, a luxury car—and still have no one to call when life hits hard. When relational wealth is missing, no material success can fill that void.

Other consistent happiness boosters? Experiences over things. Time affluence over overtime. Giving to others. Being part of something bigger than yourself. Walking outside. Getting good sleep. Having purpose.

And that word—purpose—keeps coming up. More than a feel-good idea, purpose is foundational to human flourishing. The Journal of Positive Psychology notes that individuals with a strong sense of purpose report significantly higher levels of well-being, lower risk of depressive symptoms, and more resilience in the face of adversity.

A 2014 study from the University of Rochester even found that people who felt their lives had purpose lived longer and had a 23% lower risk of death. Purpose isn’t fluff—it’s fuel. It gives direction to our choices, and meaning to both our struggles and our success.

In workplaces, people who describe their job as meaningful report 2.3 times greater job satisfaction, and are 64% more likely to feel fulfilled in their daily roles, according to a McKinsey & Co. study. Purpose isn’t a luxury—it’s a necessity. Without purpose, money becomes noise. It fills space but doesn’t feed the soul. It gets spent, flexed, or saved—but it doesn’t anchor you.

Let me say that again: Purpose. Not your paycheck. Not your position. But purpose is what anchors you.

Now, don’t get me wrong. Money is still relevant and important.

It buys safety, freedom, access to healthcare, better food, and a whole lot of stress relief. If you're worried about rent or keeping the lights on, you're not in a space to meditate on joy. But once your needs are met? The margin between contentment and consumerism gets dangerously thin.

The irony? Many people making well over six figures feel just as anxious and empty as those making $40,000. Because happiness isn’t about what’s in your wallet. It’s about what’s in your life.

So, what does the data tell us about the real price of happiness?

Recent research published in Nature Human Behaviour analyzed data from over 1.7 million people across 164 countries. It found that while life satisfaction increases with income, the emotional benefits plateau around $95,000 for individual well-being. Beyond this more income doesn’t necessarily bring more happiness—it often correlates with higher stress, less leisure, and weakened social ties.

But here’s where it gets real: people who invest in relationships, community, and meaning-driven activities report significantly higher life satisfaction, regardless of income. The same Harvard Study of Adult Development that revealed the importance of relationships also concluded that strong emotional bonds were more predictive of long-term well-being than any financial metric.

Psychologist Dr. Martin Seligman, a pioneer in the field of positive psychology, backs this up with his PERMA model of well-being: Positive emotion, Engagement, Relationships, Meaning, and Accomplishment. Notice where money isn’t mentioned. It’s not that money doesn’t matter—it does. But it’s truly meant to be just a support system, not the main structure.

So if you're looking for an actual number, its right around —$95,000 individually this will give you a healthy dose of padded comfort.

However, keeping in mind that if you're looking for happiness, you'll need to build a life around people you trust, work that means something, and time to enjoy both. Because when the shine of material success fades, it’s relationships that light the way forward.

Stay connected and be happy,

-Troy Rienstra