Money can make you happy - New study

Princeton University and the University of Pennsylvania's study has shown that happiness tends to rise with an increase in income and earnings.

This is contrary to a 2010 research that said money could only boost happiness up to a point.

Daniel Kahneman, a Nobel-Prize-winning economist, and Matthew Killingsworth, from Princeton University and the University of Pennsylvania, did number crunching to arrive at this conclusion, as per a report in The Washington Post.

The two researchers surveyed 33,391 people in the US aged between 18 and 65. These people had a household income of at least $10,000 a year.

According to the outlet, the researchers recorded the responses about their feelings at random intervals through a smartphone app. The responses ranged from “very bad” to “very good”.

CBS News said the study reached two big conclusions: Happiness does improve with higher earnings, up to $500,000 a year, and there is a group of people for whom higher incomes don’t make much of a difference. This “unhappy group” comprised about 15 per cent of people, the outlet further said citing the study.

However, Mr Killingsowrth cautioned in a statement that money isn’t everything – “just one of the many determinants of happiness.” He added: “Money is not the secret to happiness, but it can probably help a bit.”

You don’t have to be a millionaire to be happy because happiness doesn’t only come through the material goods and money you have in your bank account, true happiness can also come from deep personal connections and life experiences.