Annual Income And Happiness: The ’75000 USD’ Tipping Point

November 9, 2012 1:01 pm

Well we don’t know how many of us would be convinced by this data point – we spotted a stat today, that purely from a happiness standpoint, a 75K salary per annum seems to be the ‘tipping point’ in many ways – particularly, that is claimed to be the point when any increase beyond that has negligible effect on happiness, and anything below that has dramatic impact on happiness. (Source via this)

Two observations: 1. It is surprising how data from 2010 is still being used – and is probably relevant as well. 2. The number is derived based on a survey of about half a million people, so the standard error would not be very high.

There are more dimensions to this. Location. Industry. Experience. Assuming that the survey was a representative sample (we do not know if it was) – the number should still hold.

The other point is that the variable being inferred, happiness, is as subjective as variables can get. But then, this one should also be fairly easy to digest – like the stat that said the average working American spends over 5 dollars a day on coffee. That sounds about okay.

But 75K? What do you think?

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