Subscribe to learn How Money Works.
This is an independent directory page operated by Youtop. It is not run by, sponsored by, or endorsed by How Money Works or YouTube. Official YouTube channel ↗Suggest a correctionAre you this creator? Claim this page
How Money Works · Published February 5, 2021
Sign up for my newsletter https://compoundeddaily.com 👈 ---- $75,000 per year. This is the number often referred to as the cut off where money will no longer bring you any more happiness. This is largely in thanks to a widely misquoted 2010 study conducted by these two gentleman, Daniel Kahneman and Angus Deaton. Since this was published, all manner of outlets have perpetuated this idea that conveniently falls in line with other tropes like, money can’t buy happiness and money is the root of all evil, mo money mo problem etc etc. The issue is that it’s simply not true. The first clue for anybody misquoting this study should be in the title of the study itself. “High income improves evaluation of life but not emotional well-being” What this means in plain English is that people with higher incomes don’t necessarily experience higher levels of day-to-day happiness. However long term, they do generally have a more positive outlook on life. This phenomenon is most likely to be explained by the psychological theory of the hedonic treadmill. The hedonic treadmill is the observed tendency of humans to revert back to a relatively stable level of happiness in spite of any major life events, positive or negative. This is to be expected because of something psychologists refer to as the hedonic treadmill. The hedonic treadmill is the observed tendency of humans to quickly return to a relatively stable level of happiness despite any major positive or negative life changes. #Money #Happiness #HowMoneyWorks Sources - https://www.pnas.org/content/107/38/16489 - https://www.pnas.org/content/118/4/e2016976118.short?rss%3D1
