Experienced well-being rises with income, even above $75,000 per year

Abstract

What is the relationship between money and well-being? Research distinguishes between two forms of well-being: people's feelings during the moments of life (experienced well-being) and people's evaluation of their lives when they pause and reflect (evaluative well-being). Drawing on 1,725,994 experience-sampling reports from 33,391 employed US adults, the present results show that both experienced and evaluative well-being increased linearly with log(income), with an equally steep slope for higher earners as for lower earners. There was no evidence for an experienced well-being plateau above $75,000/y, contrary to some influential past research. There was also no evidence of an income threshold at which experienced and evaluative well-being diverged, suggesting that higher incomes are associated with both feeling better day-to-day and being more satisfied with life overall.

Keywords: experience sampling; happiness; income; satiation; well-being.

Fig. 1.

Mean levels of experienced well-being (real-time feeling reports on a good–bad continuum) and evaluative well-being (overall life satisfaction) for each income band. Income axis is log transformed. Figure includes only data from people who completed both measures.

Fig. 2.

Mean levels of positive feelings (Positive Feelings is the average of confident, good, inspired, interested, and proud) and negative feelings (Negative Feelings is the average of afraid, angry, bad, bored, sad, stressed, and upset) for each income band.