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Money may not buy you love, but it turns out that the green stuff can bring happiness, to a point: New research finds that there's a limit to how beneficial a lofty income is to an individual's well-being.
And that sweet spot in income, the new study revealed, is largely related to where a person lives.
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"That might be surprising, as what we see on TV and what advertisers tell us we need would indicate that there is no ceiling when it comes to how much money is needed for happiness, but we now see there are some thresholds," lead study author Andrew Jebb, a doctoral student in the Department of Psychological Sciences at Purdue University, said in a statement.
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On average, the research revealed the ideal income point, or "satiation," is $95,000 for overall life satisfaction and $60,000 to $75,000 for emotional well-being. The highest satiation income related to one's overall life evaluation was found in Australia and New Zealand, where happiness increased up until about $125,000. By contrast, the satiation income in Latin America and the Caribbean, was $35,000. In North America, however, the threshold for happiness was reached with an income of $105,000. This data suggests that income matters more to individuals living in wealthier nations, according to the study.
"Again, this amount is for individuals and would likely be higher for families," Jebb said in the statement. "And there was substantial variation across world regions, with satiation — the point beyond which no more happiness is gained and, in fact, satisfaction goes down — occurring later in wealthier regions for life satisfaction. This could be because evaluations tend to be more influenced by the standards by which individuals compare themselves to other people."
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