What makes a happy life?
…and what role does money play?
copyright Steve Oakes and Martin Griffin info@vespa.academy
An interesting study…
In 2010, two Nobel-prize winning researchers set out to see if there was a connection between earnings and happiness. (‘High income improves evaluation of life but not emotional well-being’, Kahneman and Deaton, 2010)
450,000 people were asked top rate their lives out of ten, under various headings like:
copyright Steve Oakes and Martin Griffin info@vespa.academy
Then their responses were grouped according to how much they earned.
Their earnings were in dollars per year. We’ve included a translation into £s based on January 2024 currency rates.
The scale began with people earning up to $10,000 per year (£7,800 per year: bottom 10% of earners in the UK)
Up to $160,000 per year (£125,000 per year: top 1% of earners in the UK)
copyright Steve Oakes and Martin Griffin info@vespa.academy
An interesting study…
copyright Steve Oakes and Martin Griffin info@vespa.academy
Here are the results…
copyright Steve Oakes and Martin Griffin info@vespa.academy
Money earned per year
Happiness scores out of 10
Here are the results…
copyright Steve Oakes and Martin Griffin info@vespa.academy
Money earned per year
Happiness scores out of 10
Here are the results…
What do you notice immediately?
copyright Steve Oakes and Martin Griffin info@vespa.academy
Happiness
Positivity
Low Stress
Money earned per year
Happiness scores out of 10
Here are the results…
The three vertical lines are there to show us something…
Once about $60,000 per year is reached, (that’s about £47,000 per year) the lines flatten.
From this point on, extra money makes almost no difference to happiness, positivity, or stress.
copyright Steve Oakes and Martin Griffin info@vespa.academy
Why might this be?
People acquire high-impact items first, then run out of exciting things to buy? People work longer hours for higher pay? Higher paid jobs are less satisfying (that’s why the pay has to be higher)? We get envious of others? We quickly adapt to higher pay, and it becomes the new normal?
copyright Steve Oakes and Martin Griffin info@vespa.academy
“If you already earn over $40,000 (£31,500 per year), then you need to gain an extra $40,000 per year just to gain 0.5 on a 10 point scale of life satisfaction. That’s a lot of income for a limited gain. If you’re a university graduate in the U.S. (or UK), then you’ll likely end up well into the [earning] range where more income has almost no effect on your happiness.”
‘Everything You Need to Know About Whether Money Makes You Happy’ – Robin Wiblin, 2016
copyright Steve Oakes and Martin Griffin info@vespa.academy
80,000 Hours are a non-profit research group focussed on helping others find fulfilling careers
copyright Steve Oakes and Martin Griffin info@vespa.academy
So what should we look for?
“What really matters is not your salary, status, type of company, and so on, but rather what you do day by day and hour by hour.
Engaging work is work that draws you in, holds your attention, and gives you a sense of flow.”
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
2. Work that helps others
“There’s a growing body of evidence that helping others is a key ingredient for life satisfaction. People who volunteer are less depressed and healthier. A meta-analysis of 23 randomised studies showed that performing acts of kindness makes the giver happier. Helping others isn’t the only route to a meaningful career, but it’s widely accepted by researchers that it’s one of the most powerful.”
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
3. Work you can become good at
“Being good at your work gives you a sense of achievement, a key ingredient of life satisfaction. It also gives you the power to negotiate for the other components of a fulfilling job — the ability to work on meaningful projects, undertake engaging tasks, and earn fair pay. If people value your contribution, you can ask for these conditions in return. That’s not to say you should only do work you’re already good at, but you do want the potential to get good at it.”
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
4. Work with supportive colleagues
“Since good relationships are such an important part of having a fulfilling life, it’s important to be able to become friends with at least a couple of people at work. This probably means working with a few people who are similar to you. Research shows that perhaps the most important factor is whether you can get help from your colleagues when you run into problems. A major meta-analysis found “social support” was among the top predictors of job satisfaction.”
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
5. Work that fits with your values and life
“You don’t have to get all the ingredients of a fulfilling life from your job. It’s possible to find a job that pays the bills and excel in a side project; or to find a sense of meaning through philanthropy or volunteering; or to build great relationships outside of work. There are famous examples too — Einstein had his most productive year in 1905, while working as a clerk at a patent office.”
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
copyright Steve Oakes and Martin Griffin info@vespa.academy
According to 80,000 hours:
copyright Steve Oakes and Martin Griffin info@vespa.academy
Happiness
Positivity
Low Stress
Money earned per year
Happiness scores out of 10
Money Isn’t Everything!