Wealth Happiness Challenge

Shaan Puri shares his skepticism about wealthy people claiming money doesn't bring happiness, and discusses new research that challenges the old belief that happiness plateaus at $70,000 income.

• On Wealthy People Claiming Money Doesn't Matter:

  • If rich people say money doesn't make you happy, challenge them to give their money away
  • "Anytime a rich person tells you that money doesn't make you happy just ask them for their money"

• On the Relationship Between Money and Happiness:

  • New research contradicts 2010 study claiming happiness plateaus at $70,000
  • Happiness continues increasing up to at least $500,000
  • $70,000 claim was "absolute nonsense" - that's nearly poverty level in places like New York
  • Personal testing preferred over accepting studies
    • "This is one of those scientific claims that I had just decided a long time ago I'm gonna go ahead and check"
    • "I'm gonna go ahead and do my own research and go get a bunch of money and see how it feels"

• Study Findings:

  • Money's impact on happiness only plateaus for the unhappiest 20% at $100,000
  • Impact continues beyond that for most people
  • Effect is relatively small compared to other factors
    • Four times income increase equals the happiness effect of a weekend

• Personal Perspective:

  • Initially thought happiness plateau was around $250,000
  • Now believes it could be $500,000 or higher
  • Glad to have personally tested the theory rather than accepting the study