More Money Does Make People Happier — But Here’s 1 Reason You Don’t Want To Chase Extra Cash
Written by
Cara Danielle Brown
Edited by
Zuri Anderson
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Matthew Killingsworth, research fellow at The University of Pennsylvania’s Wharton School, ruffled feathers in 2021 when he found that happiness increased as income rose up to and past the previously hypothesized benchmark of $75,000.
Building on his 2021 findings, Killingsworth’s recent 2024 paper sought to confirm his initial findings by further examining the shape of the relationship between money and overall reported happiness.
“The shape of this relationship is remarkably systematic,” Killingsworth told Kamaron McNair of CNBC. “There doesn’t seem to be any specific point where money stops mattering.”
In other words, a $10,000 raise given to someone earning $60,000 per year would increase their overall well-being exponentially more than a $10,000 raise given to someone earning $200,000 per year. But, if the same percentage raise in base salary is given to both workers, equal gains in overall happiness were reported regardless of where one sat on the income distribution. There was never a plateau.
“One might assume that the exponential decline in the marginal value of money means that most variation in happiness occurs in the lower income range,” wrote Killingsworth.
“One might also assume that income effectively stops mattering in practical terms for happiness beyond some modest income threshold… This report suggest that both of these assumptions are wrong.”
Despite these findings, several experts warned against people constantly pursuing wealth. They broke down the one reason why you shouldn’t be too hasty about making money.
What Do Mental Health Professionals Say About Chasing Extra Cash?
While professionals agree that larger amounts of money can relieve certain kinds of stress and anxiety, and provide a greater sense of control over one’s life, their purely observational findings tell a more complete story.
“I often see the complexities of how money influences emotional well-being and relational dynamics […] I’ve observed that individuals who chase more money beyond a certain threshold can experience heightened stress, strain in relationships and even diminished sense of life satisfaction,” stated Sandra Kushnir, LMFT and CEO at Meridian Counseling.
“The relentless pursuit of financial gain often overshadows meaningful experiences, personal growth and connection to loved ones — key factors that genuinely contribute to a sense of fulfillment.”
Similarly, Joseph Cavins, LMFT and clinical director at Southern California Sunrise Recovery Center, cautioned that constantly striving for more sets up a “never-enough” mentality where happiness becomes utterly elusive.
Gary Bowers, mental health advocate and outreach director for Live Another Day, has personally been on both sides of the poverty line.
He stated that while having his basic needs met freed him up to actually pursue his passions and enjoy experiences like fine dining, he said, “I think whether or not more money can bring you happiness depends on what you value, and what perspective you have.
“I have been completely happy in poverty because I had a loving family around me… money, like all material things, can be lost, taken away or lose value. Bank accounts empty. Stock markets crash. Money simply cannot fill the spiritual holes within us.”
Where Is the Real-World Discrepancy Occurring?
Killingsworth’s findings show how happiness correlates to money when examined purely in a vacuum. His findings aren’t wrong — they’re just limited in scope.
Even he admitted, “Each person needs a happiness portfolio because there are a bunch of different things that matter for happiness.”
For instance, money should be part of one’s portfolio, but that portfolio should also include components like family, physical health and a sense of purpose — all things that influence each other and contribute to an overall sense of wholeness. If making more money at a boring, work-intensive job harms one’s physical health and infringes upon forming and maintaining close relationships, that money becomes a detriment.
Killingsworth proposed identifying an achievable income level that, while may come with trade-offs necessary for hard work, doesn’t involve sacrificing too much of what one considers important in other areas of their overall happiness portfolio.
Even where money is considered, balance is key.
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