Studies of happiness often find a positive correlation between income and subjective well-being. Put simply, rich people tend to be happier than poor people.
Of course, correlation by itself doesn’t prove causation. In the past, I’ve suggested that the positive correlation largely reflects reverse causation. Happy personalities are likely to be more motivated and capable of earning money.
Lyman Stone recently directed me to a study showing that genes linked to higher income are associated with much better mental health.
The study looked at two sets of genes, one associated with higher levels of education and another associated with more income for any given level of education. (Presumably the latter are linked to other traits, such as work ethic, self-control, ambition, charisma, prudence and other qualities that are useful in earning more money.)
To be clear, I am not suggesting that money has no impact on happiness. Rather, I believe the impact is fairly small, and that most of the observed correlation between wealth and happiness comes from the fact that certain types of people are both more likely to become rich and more likely to have happy personalities.
I’ve spent multiple years in each of the 5 major income quintiles, and I have never noticed any impact on my happiness from moving to a different income category. My happiness level seems to reflect my innate personality, not my income.
PS. For decades, philosophers have debated the question of happiness. What is it? At age 69, I feel like I’ve finally discovered the answer.
