In her 2007 book The How of Happiness, Distinguished Professor of Psychology at the University of California, Riverside, Sonja Lyubomirsky, describes happiness as “the experience of joy, contentment, or positive well-being, combined with a sense that one’s life is good, meaningful, and worthwhile.” And there is a set amount of money that a majority of Americans believe can buy them just that, a new study shows.
The new research from Empower, a leader in financial planning, investing and advice, which surveyed 2,034 U.S. adults, shows that 59% of Americans, including 72% of millennials and 67% of Gen Zers, believe happiness can be had for a price of $1.2 million.
As many households continue to weather the pain of inflation on their budgets, some 71% of respondents said having more money would solve most of their problems, while 32%, including 37% of boomers, said a gain of just $15,000 could make them happy for six months.
With a gain of just $25,000, 42% of respondents said they would be happy for six months, while 17% of respondents said a gain of just $5,000 would make them happy for six months.
Researchers also found that, for some people, financial happiness can come through just being able to pay their bills on time. A majority of respondents, 67%, agreed with this outlook. Another 65% said living debt free would make them happy, while 45% said owning a home would do the same. Some 37% said being able to retire on their own terms would make them happy, while 53% of respondents said they could find happiness if they were able to spend money on experiences they cherish.
Unfortunately, however, 73% of Americans said they’re experiencing financial stress, and people on average expect they will have to delay their retirement by three years. Adults that don’t have a financial plan expect they will need to delay their retirement by five years.
A significant majority of respondents, 81%, cited inflation as a factor in their sense of prosperity. A similar share pointed to rising costs, while 66% pointed to rising interest rates.
“Over half of people say they carry debt (54%, and 72% of Gen X), and 36% could not handle an unforeseen expense over $500 without real worry,” researchers noted.
“For many, wellbeing is rooted in a sense of security of a financial plan (73%). Americans with a more detailed financial plan are about three times as likely to report greater happiness in money matters, including goal setting, debt, net worth, and financial allies,” they added. “Yet 43% feel that access to advice is beyond their reach, and 57% say they’d wish they’d gotten financial advice sooner.”
While a majority of people today are focused on their finances, Lyubomirsky noted in a 2010 presentation on “What Determines Happiness?” that research shows about 50% of happiness is determined by people’s genes. About 10% lies in life circumstances, while some 40% is determined by intentional actions that people take to be happy.
