We’ve heard the adage, “Money can’t buy happiness,” but research shows that’s essentially false. More than a decade ago, a Princeton University study found that a higher income can deepen your satisfaction with how your life is going. And now a recent study by Daniel Kahneman and Matthew Killingsworth concluded that reported happiness levels increase dollar for dollar.
While wealth isn’t the only driver of happiness, it’s a key factor. So why not get more? Why settle for mediocre salaries and fulfillment when you can accelerate your career, earning potential, and happiness?
Key takeaways:
close to happiness.
without it.
Getting a Job with a Higher Salary & More Benefits Increases Happiness
Emotional well-being, or “experienced happiness,” is subject to the frequency, intensity, and quality of everyday experiences. The Kahneman and Killingsworth study showed that most people's emotional well-being increases with income. A high income provides autonomy and freedom to live the life we want.
Employee benefits like paid time off and insurance coverage make your life easier and healthier. Plus, many Big Tech and other lucrative companies have the following employee perks that can literally make you scream, “Woo-hoo!”:
These benefits can ensure you have the skills and resources to continue to earn those big paychecks and increase your net worth.
Mo’ Money, Fewer Problems – Sorry, Biggie
You experience unhappiness and stress when facing financial adversities. Think about it – how content can you be if you worry about covering your mortgage, monthly bills, and groceries? Money can be used as a problem-solving tool, resulting in more overall happiness.
The median household income in the United States is $70,784. Yet, American households spend an annual average of $66,928 on expenses.
And thanks to inflation, prices for big-ticket items are on the rise. The U.S. Bureau of Labor Statistics’ Consumer Price Index averages the cost of all items to be 6% more than 12 months ago. So, you earn less than last year if your income isn’t at least that much more. Your same paycheck will be even smaller months from now.
3 Ways to Make More Money
A higher income often means less stress about bills and other expenses. You can be on the path to a happier life by taking control of your career and income.
1. Apply to Jobs at New Places
It’s generally easier to maximize your compensation at a new company than to earn yearly merit increases at a single company.
Let’s say you’re making $100,000 today, and your compensation increases at 8% annually. 10 years from now, you’ll be making around $216,000.
That amount isn’t bad, but is that increase enough? Your current expenses won’t be the same, and the buying power of your paycheck today will be lower in a decade.
Fortunately, the average salary increases by 15% when switching companies. If you changed jobs annually, you would be making around $405,000. If doubling your paycheck makes you twice as happy, imagine what joy quadrupling it could do.
2. Job Search at Better Companies
You can make more money by getting a job at a higher-paying organization. Some businesses just have more money to work with. Big Tech companies flat-out pay people better than Fortune 500s and startups. They are more generous than many mature legacy corporations with stodgy limits on raises and salaries.
You can expect a high salary if you land a job at FAANG and other best tech companies. For instance, the average salary for an Account Executive at American Express is $54,227. That’s 15% below the national average. Meanwhile, the average salary for the same position at Google is $120,461, or 88% above the national average!
3. Always Be Looking
I’m emphasizing this because it’s literally the foundation of my entire system. If you are not looking for your next opportunity, you are potentially losing money – and, therefore, lowering your level of happiness.
Even if you love your job and make good money, what’s to say there isn’t a better, higher-paying position that you love even more waiting for you? Don’t be complacent with your career.
Job loss is one of the biggest life stressors, and you don’t want a layoff to surprise you. It’s better to be prepared by:
Similarly, you want to be ready for your better job. We often get stressed about declaring salary expectations and deciding between multiple offers. Download our Kadima Confident Negotiator’s Cheatsheet to learn how to earn more money.
I'm an expert in the field of career development and financial well-being, with a deep understanding of the factors that contribute to happiness and satisfaction in one's professional and personal life.
The article you provided explores the relationship between income, career choices, and happiness. Drawing on my expertise, let's break down the key concepts mentioned:
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Princeton University Study on Income and Satisfaction:
- The article refers to a Princeton University study conducted more than a decade ago. This study found that a higher income can deepen satisfaction with life.
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Recent Study by Daniel Kahneman and Matthew Killingsworth:
- Daniel Kahneman and Matthew Killingsworth conducted a recent study suggesting that reported happiness levels increase dollar for dollar. This emphasizes the idea that there is a direct correlation between income and happiness.
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Financial Independence and Happiness:
- The article suggests that financial independence allows for more freedoms, which can contribute to a sense of happiness. It acknowledges that while money doesn't equal happiness entirely, it plays a crucial role.
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Emotional Well-being and Income:
- Kahneman and Killingsworth's study indicates that emotional well-being increases with income. High income provides autonomy and freedom to lead a desired life.
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Employee Benefits and Happiness:
- The article discusses the role of employee benefits, such as paid time off, insurance coverage, and perks offered by Big Tech companies. These benefits contribute to a healthier and more fulfilling life.
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Financial Stress and Unhappiness:
- The article highlights the negative impact of financial adversities on happiness. It suggests that money can be a problem-solving tool, leading to overall happiness.
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Median Household Income and Expenses:
- It mentions the median household income in the United States and the annual average expenses. The rising cost of living and inflation are factors influencing financial well-being.
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Ways to Make More Money:
- The article provides three strategies to increase income and potentially enhance happiness:
- Apply to jobs at new places for higher compensation.
- Job search at better-paying companies, especially in sectors like Big Tech.
- Adopt the "Always Be Looking" strategy to be prepared for better opportunities.
- The article provides three strategies to increase income and potentially enhance happiness:
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Maximizing Compensation:
- It compares the potential salary growth within a single company through yearly merit increases versus the average salary increase when switching companies.
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Preparing for Career Changes:
- Emphasizes the importance of being proactive in seeking new opportunities, honing LinkedIn profiles, practicing skills, and preparing for potential job changes.
In summary, the article advocates for the idea that while money alone may not buy happiness, it is a significant factor, and strategic career choices and financial planning can lead to a more fulfilling and satisfying life.
