Friday, September 17, 2010

Your Take: Magic Income Number - Bargaineering

Your Take: Magic Income Number - Bargaineering

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Your Take: Magic Income Number

Posted: 17 Sep 2010 04:08 AM PDT

The WSJ reported a couple weeks ago on a study by Princeton economist Angus Deaton and psychologist Daniel Kahneman that:

The magic income: $75,000 a year. As people earn more money, their day-to-day happiness rises. Until you hit $75,000. After that, it is just more stuff, with no gain in happiness.

The conclusion came from a series of Gallup surveys of 450,000 Americans in 2008 and 2009. I thought it was interesting that happiness pretty much peaked at $75,000 (lending credence to genius of Biggie’s “mo’ money, mo’ problems”) but “contentment” was the only thing that increases with income. “More money does boost people's life assessment, all the way up the income ladder. People who earned $160,000 a year, for instance, reported more overall satisfaction than people earning $120,000, and so on.”

What do you think your magic number is? Is it $75,000? Higher? Lower?



Your Take: Magic Income Number from personal finance blog Bargaineering.com.


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