More Pay or More Time? | The Psychology of Money and Happiness

Does more money make us happier? Most of us answer fast: yes, but only up to about $75,000 a year. This video looks at where that famous number came from, and what later research found. We follow a real disagreement between scientists. A 2010 study found that daily mood stopped improving above about $75,000 a year. A 2021 study used a phone app that asked people how they felt in the moment. It found no such limit. In 2023, the rival researchers analyzed the data together. The limit showed up only for the least happy group, roughly one person in five. We also look at two ways of spending that seem to help (spending on other people and paying to save time), why the overall link between money and mood is small, and a more useful question to ask when a raise or a new job is on the table. Chapters 0:00 The $75,000 Answer 1:23 Rating Our Life vs. Enjoying Our Day 4:09 Asked in the Moment: No $75,000 Limit 6:14 Rivals Team Up: The Unhappy One in Five 9:07 Spending on Others, Buying Time 12:09 Why Money Matters Less Than It Seems 14:11 Yes, a Little, With Conditions Sources Kahneman & Deaton (2010), High income improves evaluation of life but not emotional well-being, PNAS Killingsworth (2021), Experienced well-being rises with income, even above $75,000 per year, PNAS Killingsworth, Kahneman & Mellers (2023), Income and emotional well-being: A conflict resolved, PNAS Dunn, Aknin & Norton (2008), Spending money on others promotes happiness, Science Whillans, Dunn, Smeets, Bekkers & Norton (2017), Buying time promotes happiness, PNAS News reports on the Gravity Payments $70,000 minimum salary (2015), Fortune; CBC Notes The job offer in this video is an illustrative example, not a real case. These studies compare different people at one point in time. They show patterns, not proof that money causes happiness. The 2023 figures (about $100,000 a year, about one person in five) are approximate. Later, larger repeats of the 2008 spending experiment found a smaller effect that did not always appear. Illustrations created with AI assistance. Narration uses a synthetic (text-to-speech) voice. Sound: Universfield (Pixabay). #psychology #happiness #money #behavioralscience