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You remember that "money can't buy happiness" line? Turns out it can, but — plot twist! — only up to about $75,000 a year. Or so the experts used to say.

When I first heard about this "happiness plateau" back in my 20s, it sounded kind of perfect. Here's this nice, reasonable sum of money — around $75,000 — that supposedly covers everything you really need to be happy. Beyond that? Nada. No extra joy. Just a bigger paycheck.

And wow, did that idea spread fast. Everyone loved it. Maybe it was comforting — hey, no need to be rich to be happy, right? Just make enough to keep the lights on and do a little weekend splurging.

But now? Well, life throws us curveballs, and so does research.

A decade later, I'm not so sure this happiness plateau really tells the whole story. Because, let's face it, money can fix problems, make things easier, and give you the freedom to say yes to what really matters. Personally, as I've gotten older, I've learned that money can buy happiness — if you know how to use it.

So, is that magic number, $75,000, still relevant today? Or have we moved on? Let's get into where the research stands now and where real life fits into the equation.

The $75K "Happiness Sweet Spot" — Where It All Began

So, why $75,000? Why did we all latch onto this oddly specific number?

Back in 2010, two legendary researchers, Daniel Kahneman and Angus Deaton, ran a massive study that changed the way a lot of us thought about money. They wanted to know if earning more money actually makes us happier. And what they found was fascinating. The research suggested that, yes, money does buy happiness... but only up to a point.

And that "point" was around $75,000.

The gist was simple: Up to around $75K, every dollar you earned supposedly boosted your day-to-day happiness. Bills? Paid. Savings? Growing. Little luxuries? Within reach. But once you hit that number, things flattened out. In other words, they argued that making more wouldn't make you feel happier on a regular basis. You'd hit a point of comfort, and that was that.

For a while, this idea stuck. In fact, one CEO even raised his employees' minimum salary to $70,000 after reading the study, inspired by the promise of a happier workforce. It was nice to think that happiness was just a certain salary away, that you didn't have to join the rat race to be content.

But as we're finding out, there might be a little more to the story.

Breaking Through the $75K Ceiling

Now, imagine you've been living with this $75,000 rule in the back of your mind. Maybe it even shaped how you looked at money. But then — surprise! — a new wave of research comes along and says, "Wait a second...maybe there's no ceiling after all."

This is where Matt Killingsworth enters the scene.

Killingsworth, a happiness researcher, wanted to know if there was more to this story. So, he didn't just rely on surveys or self-reports. He created an entirely new way of measuring happiness in real-time. Picture it: People get little "pings" on their phones, asking them how they're feeling at that exact moment. Over time, he gathered millions of data points, tracking happiness in people's everyday lives. This wasn't just one snapshot — this was a day-by-day, minute-by-minute look at happiness in action.

And guess what he found? No plateau.

According to Killingsworth's data, happiness didn't flatten out at $75,000. It kept going up. The more people earned, the happier they felt, without any sign of a drop-off. For some people, more money really did mean more happiness — at every income level.

Now, does this mean we should all be chasing a bigger paycheck? Not exactly. But it does challenge the old rule, suggesting that for some people, higher income can bring more daily joy.

So, what does that mean for us? Let's keep going, because there's more to uncover about how money — and how we spend it — might actually lead to happiness.

When Money Does Buy Happiness

So, does more money make you happier? For a lot of people, the answer is yes — but maybe not in the way we'd expect.

Imagine this: you've hit an income where the basics are covered. The bills get paid on time, there's room for a little splurge now and then, and life feels comfortably steady. Not bad, right?

But now picture your income growing just a bit more — not only are you secure, but suddenly, a whole new world of experiences opens up. Maybe it's that long-awaited concert, season passes to the zoo or theater, or the freedom to say yes to things without anxiously checking your bank balance first. There's a feeling of true freedom that comes with this — knowing you're not just debt-free but also empowered to make choices that genuinely bring joy

And that's a big deal. Being able to say yes to things that actually light you up? That's the kind of happiness money can buy.

Think about it. Imagine having the flexibility to pick up a hobby you love or to create unforgettable memories without worrying about the cost. For one person, this might mean a concert with friends, for another, it might be a quiet Saturday or the chance to travel. It's not just about having more money — it's about what that extra money lets you experience, stress-free.

In the end, it's not just about hitting a number. It's about what that number can give you — the freedom to make choices that feel meaningful.

...And When It Doesn't

Alright, so money can buy freedom, comfort, even a bit of everyday joy. But here's the catch: It's not a magic fix for everything. Sometimes, even a bigger bank balance can't lift the clouds.

Researchers like Killingsworth found something interesting when they looked at the data a little closer. For the happiest people — the ones who already feel fulfilled day-to-day — more money seemed to add even more joy. But for the people who were less happy, the ones feeling weighed down by stress or sadness? Money only helped up to a point. Beyond a certain income — about $100,000 — it stopped making much difference.

It's like this: If someone is dealing with something deep — grief, depression, feeling disconnected — money can't erase those struggles. Sure, it can soften the edges by covering the bills and allowing for some small luxuries. But it's not going to flip a switch and make everything feel better. In fact, sometimes, if the emotional foundation isn't there, more income might even start to feel empty.

So yes, there's still a "plateau" — but it depends on what you're bringing to the table emotionally. Money can be an incredible tool for happiness, but it can't replace the need for connection, purpose, or healing.

How to Spend for Happiness

So, what does all this mean for us and our wallets?

If we're learning anything from the latest research, it's that money can buy happiness — but only when we use it intentionally. Here's how to make sure your income is doing the most good, bringing a little more joy into each day without going overboard.

1) Invest in Experiences, Not Just Stuff.Think about the things that leave you smiling weeks, even months later. It's probably not the fancy coffee maker but that weekend getaway with friends or that unforgettable concert. Experiences create memories, and memories bring happiness that sticks around.

2) Buy Yourself Freedom.Debt can feel like a weight around your neck, so if you've got the means, paying it down can be life-changing. Money in the bank means freedom — to say yes to things that light you up, like hobbies or adventures, without worrying if you can afford it. That freedom? That's priceless.

3) Create a "Happiness Budget."Ever thought about setting aside a small portion of your budget purely for things that bring you joy? Maybe it's a class you've been wanting to take, a meal at your favorite restaurant, or even just a "fun fund" for spontaneous treats. Knowing you've got a guilt-free way to spend can add a layer of joy to your daily routine.

4) Build in Financial Security.For a lot of us, happiness is as much about feeling safe as it is about feeling excited. Money in an emergency fund, a plan for retirement, knowing your essentials are covered — that sense of security can be one of the biggest happiness boosters of all.

In the end, there's no one-size-fits-all answer to money and happiness. But one thing's for sure: When we're thoughtful about how we spend, we get a lot closer to that sweet spot where our money actually feels like it's working for us.