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If someone asked you, “How much money is enough?”, most people's gut answer would be: “The more the better!” But research tells us it isn't that simple.
Less money, more happiness? The virtue of simple living, from Yan Hui
From The Analects of Confucius: “How admirable Hui is! A bowl of rice, a gourd of water, living in a shabby lane. Others could not bear the hardship, yet Hui never lost his joy.”
In short, Yan Hui lived extremely frugally, getting by on a bowl of rice and a ladle of water in a narrow alley. Most people would have found it unbearable, yet he stayed happy and content — a picture of the value of simple living.
In ancient times, before consumerism took hold, a simple life was seen as a virtue. Yan Hui wasn't after material comfort but richness of spirit. Of course, I'm not asking anyone to live as hard or as loftily as Yan Hui. The question is: “Why could Yan Hui live so simply, yet feel so rich inside?”
How much do you need to earn to be happiest? What the data says
According to research from Purdue University in the US: “Income does raise happiness, but that doesn't mean more money always means more happiness.”
Daniel Kahneman — Nobel laureate in economics and author of Thinking, Fast and Slow — reached a similar conclusion: beyond a certain income, happiness plateaus, and the link between income and happiness weakens.
The research found that once annual income passes US$70,000 (about NT$2.2 million), gains in happiness slow down. Above US$100,000 a year, happiness may even start to decline. In other words, the happiness money brings doesn't grow forever; there is a “happiness threshold.”
Wealthy people aren't necessarily as happy as we imagine
The reason is that gains in happiness come mainly from meeting needs. An income of US$70,000 is enough to cover most people's basic needs: good food, comfortable housing, solid health care, plus everyday spending and entertainment.
Once those basic needs are met, the extra happiness from more income drops sharply, because further spending is mostly on non-essentials that don't affect survival — designer handbags, sports cars and so on.
Can money really buy everything? The truth about happiness and stress
Above a certain income, stress usually no longer comes from “not enough money” but from other things, such as:
- working too many hours
- too little time with family
- not living up to society's expectations
None of these can be solved with money. You might think, “If I just earn enough, I'll have more time for my family.” But once your income passes NT$2 million, the goal becomes NT$3 million; reach NT$3 million and you'll want to break NT$5 million.
As income rises, spending rises too
Why? Because as our income grows, our wants grow with it. There is never enough money to feel satisfied — like a hamster running on a wheel. Psychologists call this “hedonic adaptation.”
To learn more about hedonic adaptation, read Hedonic Adaptation: Why Happiness Always Returns to Baseline.
Are we constantly chasing more money while overlooking real happiness? Maybe it's time to stop and think about what matters most in our lives. Stop imitating other people's lives — no one is better suited to live your life than you.
What do you think? I'd love to hear your thoughts.
