Yahoo asks if saving is the key to happiness. Some of their thoughts from a recent survey by Ally Bank:
The size of an American’s bank account is a better predictor of happiness than the size of their salary, according to Ally Bank’s research, released this week.
U.S. adults who save money are happier than those who don’t, and those who save the most report the highest rates of happiness according to Ally’s survey of 1,025 U.S. adults over the age of 25.
Americans who have no savings are about one-third less likely to say they are happy than people who have at least some savings. Only 29% of those with no savings say they are happy, compared to 38% who have at least a little money saved up.
“Happiness continues to grow as savings accumulate,” Ally said in a blog post about the results. “In other words, a big savings account may contribute to happiness more than a big paycheck.”
In fact, the survey hints that saving money is among the healthiest things a person can do. When asked which activities made them happy, saving money got a higher response (84%) than exercising (59%), enjoying work (68%) and eating healthy (74%).
It's a stretch, but let me rephrase the first sentence in red above as follows: "The size of an American’s net worth is a better predictor of happiness than the size of their income." Do you think that's what this is saying?
This is true for me. I would be much happier making $50,000 a year and having $1 million in net worth than I would be making $250,000 a year and having $100,000 in net worth.
But I could be wrong. That's why I'm asking you for your thoughts. :)
And just to muddy the waters a bit, for me personally, I am happier making a larger salary than I would be at a smaller one. Scores of articles I've seen say that happiness stops going up as salary increases once a person hits $70,000 or so in annual income. This was not the case for me. The more my salary goes up, the happier I am.
How about you?