In 2010 the authors of Thinking Fast and Slow, Daniel Kahneman and Angus Deaton performed a study in which they found that there is a positive correlation between income and subjective ratings of overall life satisfaction, but that correlation only exists between $0/year and $75k/year (2010 dollars). After $75000, increases in salary did not increase reported measures of life satisfaction.

Today that’s:

https://www.wolframalpha.com/input/?i=%2475000+in+2010&assumption={"C"%2C+"in"}+->+{"EnglishWord"}&assumption="HMConvertOrder"+->+{"ThenToNow"%2C+"%2475000"%2C+"2010"}

In Your Money or Your Life this is referred to as the Money/Fullfillment Curve, and drawn out like such:


Related Notes

Law of Diminishing Returns

Happiness is Relative

Enough

Enough Money