Income-Happiness Correlation Method
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A new study challenges the popular belief that happiness plateaus at $75k income, showing continued correlation between wealth and happiness at much higher income levels.
The Original Study's Flaws
- Based on remembered feelings rather than real-time data
- Used binary yes/no responses instead of nuanced scales
- Limited variance in responses made data less meaningful
- People's memory of past happiness is often inaccurate
New Study Methodology
- Used "Track Your Happiness" app
- Sample size: 35-40,000 people
- Random sampling throughout the day
- Measured on scale of 1-5 or 1-10
- Tracked both income levels and happiness
- Captured real-time feelings instead of memories
Key Findings
- Happiness continues increasing with income up to $500-700k
- Shows clear correlation between money and life satisfaction
- Graph shows steady upward trend from $15k to $500k household income
- Demonstrates significant happiness difference between $1M and $10M earners
- Smaller differences noted between closer income levels (e.g., $2M vs $3M)
Study Implications
- Challenges widely-cited $75k happiness plateau
- Suggests people shouldn't limit career aspirations based on old data
- Indicates wealth can significantly impact well-being at higher levels
- Shows importance of real-time data collection vs. remembered experiences
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.