New research reveals money"s impact on happiness in 2021

For over a decade, a well-known study by Daniel Kahneman and Angus Deaton suggested that emotional well-being increased with household income, but only up to $75,000 annually. Beyond this threshold, additional income appeared to have little effect on happiness. This perspective was widely accepted and often cited in discussions about the relationship between wealth and happiness. However, in 2021, psychologist Matt Killingsworth challenged this long-standing belief. His research indicated that higher income levels correlate with increased happiness, extending well beyond the previously established limit of $75,000. This new finding suggests a more complex relationship between money and emotional well-being than previously understood. The implications of this research are significant, as they prompt a reevaluation of how society perceives wealth and its impact on happiness. The discussion surrounding these findings has sparked debates among researchers, with differing opinions on the extent to which money can influence happiness. The episode featuring these insights was produced by NPR's Planet Money team, highlighting the evolving understanding of economic factors in relation to personal satisfaction and well-being.