Enough Is a Feeling, Not a Number: Rethinking Income and Happiness

A minimal morning scene with a cup of black coffee, reading glasses, and a closed notebook on a white table — capturing the essence of quiet reflection and financial contentment.

Many of us grow up believing this:

“The more money you earn, the happier you’ll be.”

But is that really true?

A 2021 study by psychologist Matthew Killingsworth at the University of Pennsylvania found that happiness increases with income only up to about $75,000 per year. Beyond that, the impact of additional income on day-to-day happiness becomes much smaller and more inconsistent.

Another global study from Purdue University confirmed a similar pattern:
The ideal income for emotional well-being tends to fall between $60,000 and $75,000.
Beyond that range, life satisfaction can actually start to decline, especially when income growth brings added stress or pressure to maintain a certain lifestyle.

In short, happiness isn’t tied to the size of your paycheck—it comes from the feeling of “enough.”

This data aligns perfectly with what I’ve experienced in my own life.

In my 20s, I assumed a higher salary would automatically make me happier. And yes, some things got easier—rent, groceries, small luxuries. But oddly, so did my spending. I upgraded my apartment, ordered out more, subscribed to things I barely used. And at the end of the month, I didn’t feel more fulfilled—just more distracted.

That’s when I stopped asking, “How much should I earn?” and started asking,
“Why do I spend the way I do?”
“Which purchases actually make me feel better—not just for five minutes, but in the long run?”

I began tracking not just what I bought, but how I felt before and after each purchase.
Was I shopping because I was stressed? Lonely? Bored?
Did that $200 impulse buy really improve my week—or did it just clutter my apartment?

Eventually, I started a simple habit I now call a “Value Spending Journal.”
Each month, I’d write down:

My top 3 most satisfying purchases
My top 3 most regretted purchases

That small practice helped me notice patterns. The best purchases weren’t the most expensive ones—they were the ones that aligned with my values: meals with friends, tools that saved me time, or classes that helped me grow. The worst? Usually tied to comparison, boredom, or emotional impulse.

It turns out, this isn’t just personal experience—research backs it up.
According to a Harvard Business School study, people who spend money on experiences report higher and longer-lasting happiness than those who buy material goods. Investing in relationships, time, or personal growth creates emotional returns that go far beyond the price tag.

For most of us in our 20s and 30s, financial happiness doesn’t come from hitting six figures overnight.
It comes from clarity—knowing what truly matters to you, and aligning your spending with those values.

If you’ve ever asked yourself, “Will more money really solve this feeling?”—you’re not alone.
The answer might not be a bigger paycheck, but a better understanding of what “enough” looks like in your life.

What’s one purchase you made recently that brought you real happiness?
Was it about the price—or the purpose behind it?

This blog post is inspired by key insights from The Psychology of Money by Morgan Housel, reinterpreted through personal experience. No direct quotes are used. All rights belong to the original author.