Money Actually Makes You Happier! How a Higher Income Can Equal Better Emotional Well-Being

We’ve heard the adage, “Money can’t buy happiness,” but research shows that’s essentially false. More than a decade ago, a Princeton University study found that a higher income can deepen your satisfaction with how your life is going. And now a recent study by Daniel Kahneman and Matthew Killingsworth concluded that reported happiness levels increase dollar for dollar.

While wealth isn’t the only driver of happiness, it’s a key factor. So why not get more? Why settle for mediocre salaries and fulfillment when you can accelerate your career, earning potential, and happiness??

Key takeaways:

• Financial independence allows more freedoms, equaling something

? ? ? close to happiness.?

• Money doesn’t equal happiness, but most of us are pretty miserable

? ? ? without it.?

• Accelerate your career by applying for positions at new companies.
• You can earn more money by getting a job in a higher-paying industry.
• Always Be Looking is a strategy that keeps your income trending upward.?

Getting a Job with a Higher Salary & More Benefits Increases Happiness

Emotional well-being, or “experienced happiness,” is subject to the frequency, intensity, and quality of everyday experiences. The Kahneman and Killingsworth study showed that most people's emotional well-being increases with income. A high income provides autonomy and freedom to live the life we want.?

Employee benefits like paid time off and insurance coverage make your life easier and healthier. Plus, many Big Tech and other lucrative companies have the following employee perks that can literally make you scream, “Woo-hoo!”:

• Student loan repayment packages, grants, and scholarships.?
• Company transportation and equipment.?
• Investment opportunities.?

These benefits can ensure you have the skills and resources to continue to earn those big paychecks and increase your net worth.

Mo’ Money, Fewer Problems – Sorry, Biggie

You experience unhappiness and stress when facing financial adversities. Think about it – how content can you be if you worry about covering your mortgage, monthly bills, and groceries? Money can be used as a problem-solving tool, resulting in more overall happiness.

The median household income in the United States is $70,784. Yet, American households spend an annual average of $66,928 on expenses.?

And thanks to inflation, prices for big-ticket items are on the rise. The U.S. Bureau of Labor Statistics’ Consumer Price Index averages the cost of all items to be 6% more than 12 months ago. So, you earn less than last year if your income isn’t at least that much more. Your same paycheck will be even smaller months from now.

3 Ways to Make More Money

A higher income often means less stress about bills and other expenses. You can be on the path to a happier life by taking control of your career and income.?

1. Apply to Jobs at New Places?

It’s generally easier to maximize your compensation at a new company than to earn yearly merit increases at a single company.

Let’s say you’re making $100,000 today, and your compensation increases at 8% annually. 10 years from now, you’ll be making around $216,000.?

That amount isn’t bad, but is that increase enough? Your current expenses won’t be the same, and the buying power of your paycheck today will be lower in a decade.?

Fortunately, the average salary increases by 15% when switching companies. If you changed jobs annually, you would be making around $405,000. If doubling your paycheck makes you twice as happy, imagine what joy quadrupling it could do.?

2. Job Search at Better Companies

You can make more money by getting a job at a higher-paying organization. Some businesses just have more money to work with. Big Tech companies flat-out pay people better than Fortune 500s and startups. They are more generous than many mature legacy corporations with stodgy limits on raises and salaries.?

You can expect a high salary if you land a job at FAANG and other best tech companies . For instance, the average salary for an Account Executive at American Express is $54,227. That’s 15% below the national average. Meanwhile, the average salary for the same position at Google is $120,461, or 88% above the national average!?

3. Always Be Looking

I’m emphasizing this because it’s literally the foundation of my entire system. If you are not looking for your next opportunity, you are potentially losing money – and, therefore, lowering your level of happiness.?

Even if you love your job and make good money, what’s to say there isn’t a better, higher-paying position that you love even more waiting for you? Don’t be complacent with your career .

Job loss is one of the biggest life stressors, and you don’t want a layoff to surprise you. It’s better to be prepared by:

• Honing your LinkedIn profile for recruiters.?
• Networking and strengthening your weak ties .?
• Practicing skills and landing more interviews.?

Similarly, you want to be ready for your better job. We often get stressed about declaring salary expectations and deciding between multiple offers. Download our Kadima Confident Negotiator’s Cheatsheet to learn how to earn more money.