How much do you need to earn to be happy? $200,000, say most in the survey

A new survey found that despite the cliché about money and happiness, most Americans know how much money they would need to feel satisfied.

Financial advice website Cardrates.com found that 56 percent of Americans say they would be satisfied with a liquid net worth of more than $200,000.

The survey, of 786 employed Americans ages 18 to 43, found that having money may not bring happiness, but a safety net doesn’t keep you from worrying about a financial emergency.

“Knowing you have money set aside can ease worries about future uncertainties, whether it’s a medical emergency or a layoff,” wrote Jon McDonald, author of the Cardrate study summary. “This peace of mind goes a long way toward feeling happy in general.”

The amount of money Americans need has risen in more than a decade, as a 2010 Gallup poll found that the annual salary respondents said would maximize happiness was $75,000.

The average American earned $59,384 a year at the end of 2023, according to the US Bureau of Labor Statistics.

As income increases, so does the amount needed to be happy

The study found that respondents with higher salaries said they would need more money to be satisfied.

Seventy-four percent of respondents currently earning $40,000 said they would settle for $150,000, compared to 64 percent of those currently earning $150,000.

McDonald pointed to the Hedonic Treadmill phenomenon to explain the answers, saying that “people pursue higher income to achieve happiness, only to return to a baseline level of contentment after a short-lived boost.”

Generational differences in money and contentment

The study found that millennial respondents and Gen Z differ in their priorities for salaries and investments.

Millennial respondents said they would be more satisfied with a job with a higher salary, while Gen Z respondents preferred having a higher net worth.

Seventy-five percent of millennial respondents surveyed said they would be satisfied with a salary of $150,000, compared to 71% of Gen Z, while 84% of Gen Z respondents said they would be comfortable with a liquid net worth of $1,000,000, compared to 81% of millennials. respondents.

McDonald pointed to each generation’s formative economic backgrounds for the differences, saying higher pay was a sign of achievement for millennials economically left behind by the Great Recession, and that Generation Z, shaped by the COVID-19 pandemic, found that the building. assets was a safer strategy.

How much do you need to earn to be happy? $200,000, say most in the survey

As income increases, so does the amount needed to be happy

Generational differences in money and contentment

By Matthew. Jr

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How much do you need to earn to be happy? $200,000, say most in the survey

As income increases, so does the amount needed to be happy

Generational differences in money and contentment

By Matthew. Jr

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