10 Happiest States in America — and How Much Money Factors

What is happiness? While philosophers have wrestled with that question for centuries, WalletHub recently discovered that, in America, an incredible amount of happiness is tied to economic security and the freedom that wealth provides.

WalletHub conducted a study that aimed to measure how such factors as environment and — most especially — finances impact the lives of Americans on a state-by-state basis. For instance, they located what appears to be a corollary between low work stress and high levels of happiness and mental health/stability; conversely, states with extreme economic stress and overwork appear to exist alongside high suicide rates and depression levels. States with higher than average levels of economic growth, stable work environments and low long-term unemployment rates all trended toward the top of the list of states in which residents claimed to be the happiest.

While happiness obviously remains a somewhat subjective mental state — and what amounts to happiness for one person could be the complete opposite for someone else — it appears that money is an extraordinarily important factor in the happiness of most Americans. It allows them the freedom to pursue rest, relaxation and recreation on the levels necessary to maintain a high level of contentment.

Peruse WalletHub’s 10 happiest states to find out whether your state made the cut.

Also see a previous study finding the happiest cities.

Idaho has the second highest-rated work environments in America (as well as the second-highest community and environment ranking as well). Both factors make Idaho a lovely state to live in, but that’s not all. Idaho is ranked first above all other states in terms of income growth. It’s no wonder that, in keeping with its income level supremacy, Idaho has the 47^th lowest suicide rate in America.

Massachusetts boasts the third-lowest suicide rate in the country, as well as the fourth-highest safety rating. In addition to that combination, it also has the eighth-highest emotional and physical well-being ranking.

How does the Bay State accomplish all of this? Like Idaho, so much of it seems to come back to working conditions: Massachusetts ranks sixth in the nation in terms of high-quality work environments.

New Hampshire ranks second only to Vermont in terms of safety for its residents, which keeps folks there very happy. Additionally, it ranks 10^th in terms of enjoyable work environments. As with so many states in WalletHub’s top 10, a healthy work situation seems to go a long way toward fostering happiness and mental well-being for a state’s population.

Sure, California is expensive, and yes, it has highest long-term unemployment rate in America. Yet like so many other states on this list, it boasts some of the lowest amount of work hours in the country, tying for fifth in that regard with Connecticut. Clearly, based on those numbers, overwork is a mental-health problem in the nation, and the states with fewer work hours appear to allow for a high (and highly measurable) amount of happiness for their citizens.

Utah has the single-lowest divorce rate in America, the highest volunteer rate and the highest sports participation rate. What is keeping Utah citizens so happily married, as well as involved in local sports and volunteer programs? It likely has something to do with the fact that Utah also has the single lowest amount of work hours per week than any other state. Compare that to a state like Alaska, which has the absolute highest amount of work hours per week — and also the highest suicide rate in the nation.

Connecticut has the fourth-lowest suicide rate in the nation. It’s hard not to view that number being intrinsically tied to the fact that Connecticut is tied (with California) as the state with the fifth-fewest working hours per week. Residents of the Constitution State are allowed to work less and as a result have more time for focus on themselves, their lives and their mental health and happiness.

New Jersey comes in as the fourth-happiest state overall, yet it has the single highest rating in terms of emotional and physical well-being of any state in America, as well as the lowest suicide rate and adult depression rates in the country. It also has the second-lowest divorce rate in the United States. A great deal of that is due to a relatively low unemployment rate and a diverse and high-income economy. Once again, it seems that economic stability and employment reliability seem directly related to emotional and mental well-being.

While it may be third on the list, Nebraska has the second-highest economic security in America (based on employment levels and the amount of its population that is insured). It also boasts an unemployment rate of 2.9%, the fourth lowest in the nation.

Maryland is the second-happiest state, and the fifth least-stressed about work. How? A very low unemployment rate of 3.2% helps, as does the fact that Maryland has the highest percentage of households with incomes over $75,000. It’s easy to be happier than the 48 other states in the union with that level of economic security and freedom.

It’s hard to be surprised at Hawaii taking the top spot as the happiest state in the union. How could it not be No. 1? Beautiful island living, great health and the longest life expectancy in the nation — Hawaii has it all. Helping matters is the fact that Hawaii has the second-highest number of households with annual incomes over $75,000 and a very, very low unemployment rate of 2.4%. As a result, Hawaii ranks No. 11 for the lowest amount of financial anxiety in the country.