Updated "experienced well being vs income" study

[Metalcat]

My average yearly spend is about $45k but I'd be less happy than at present if I only earned $55k (which after taxes is $45k). I like knowing that I'm accumulating an excess amount which can go towards freedom from worry, as well as frivolity when I feel like it.

As stated directly above, someone on $300k has perhaps only the same 'options'/utility in terms of spending and lifestyle as someone on $100k, but the former is going to be able to retire a lot earlier. Which, surely, must count for something.

Except that most people don't consider retiring early an option.

You forget that we're outliers.

Also, populational data never really applies to the individual. Social psychology research is usually very limited in terms of interpretations. That's well known, the only issue is when people try to draw conclusions that the research itself doesn't even draw.

Popular media reporting in individual studies always tries to draw conclusions and make generalizations from it, but that's really quite silly.

[Bloop Bloop Reloaded]

For someone who doesn't consider retiring early, the extra benefit of the $200k might be in greater material consumption (unlikely to lead to greater happiness) or in greater giving or experiential consumption (likely to lead to greater happiness).

[Cranky]

But doesn’t it all depend on the particular balance in your own life? What it costs to live, how you want to live, whether you have/want family, whether you like what you do?

Somebody who loves their work and finds it meaningful may be happier with less money than someone who only wants to retire as soon as possible.

I can’t imagine making $300k (even Australian money) and I can’t imagine that it would make me any happier.

[Metalcat]

But doesn’t it all depend on the particular balance in your own life? What it costs to live, how you want to live, whether you have/want family, whether you like what you do?

Somebody who loves their work and finds it meaningful may be happier with less money than someone who only wants to retire as soon as possible.

I can’t imagine making $300k (even Australian money) and I can’t imagine that it would make me any happier.

Yes, for the individual, it does. That doesn't mean that there aren't broad populational patterns though.

[Cranky]

But it seems like just asking people “how happy are you” is a pretty good metric.

I’m very happy. I guess if I had a billion dollars and knew that anything I ever could possibly want or need was possible, I might be 1% happier, but in the long run - no.