Let’s break down the numbers. To live a carefree life in London, you’d need an annual income of approximately £79,524, which places you in the top 10 percent of earners in the capital. Apologies to those earning £79,523; it seems you just miss the happiness mark. Tough luck!
S Money pointed out the significant gap between the income required for a contented life and the average annual income in London, which stands at only £37,000. They highlighted that for most Londoners, happiness, or the peace of mind to achieve it, remains elusive.
In contrast, the city of Leicester offers the most affordable happiness premium in the UK, where a salary of just £61,117 can keep your spirits high. It’s quite a bargain. Other cities with high happiness price tags include Cambridge, Guildford, Brighton, Bristol, and Oxford, all requiring incomes exceeding £70,000.
If all of this leaves you feeling disheartened, don’t worry. Research suggests that happiness is more closely tied to how people use their money rather than the amount they have. Experiences tend to bring more joy than possessions. Additionally, Harvard researchers emphasize the significance of the quality of our social relationships in determining happiness. So, if you’re feeling low, making a new friend is a reliable way to uplift your mood, especially if that friend happens to be well-off. Bonus points if they take you on a vacation!
In times of a challenging cost-of-living crisis, you might wonder if this question even holds significance. Survival often takes precedence over pursuing happiness, doesn’t it?
Ultimately, what truly matters is how we perceive the quality of our lives. Now, does money have a connection to happiness? Undoubtedly, especially when we’re talking about individuals at the lower end of the income scale. As you ascend the income ladder, the impact on well-being becomes less pronounced. Here’s an interesting pattern: if you move from a £20,000 salary to £40,000, you’d experience a substantial boost in well-being. However, to replicate that impact, you’d need to transition from £40,000 to £80,000, then from £80,000 to £160,000. It’s a doubling game to achieve the same effect.
So, is the magic happiness number really a £50,000 salary? Well, that notion stems from a 2010 study conducted by Nobel laureates Angus Deaton and Daniel Kahneman. They discovered that in the United States, on average, the point of diminishing emotional returns was around $75,000, which was roughly equivalent to £50,000 at the time. Beyond that income threshold, there seemed to be a plateau in emotions. In other words, someone earning $100,000 didn’t report experiencing more positive emotions or fewer negative ones, like worry, when compared to someone making $75,000. However, it’s worth noting that this study was conducted before considering factors like inflation and the evolving nature of the question itself.
Here’s a list of the income levels required to achieve happiness across various UK cities, according to S Money:
- Leicester: £61,117
- Dundee: £61,242
- Birmingham: £62,404
- Aberdeen: £62,833
- Coventry: £63,047
- Portsmouth: £63,369
- Cardiff: £63,357
- Sheffield: £64,107
- Exeter: £64,107
- Southampton: £64,959
- Norwich: £65,280
- Newcastle: £65,387
- Edinburgh: £65,816
- Derby: £65,803
- Belfast: £66,232
- Leeds: £66,446
- Plymouth: £66,875
- Nottingham: £66,982
- Glasgow: £67,860
- Bournemouth: £67,968
- Liverpool: £68,182
- Manchester: £68,611
- Reading: £69,897
- Oxford: £70,219
- Bristol: £70,307
- Brighton: £72,022
- Guildford: £74,273
- Cambridge: £74,808
- London: £79,524
Please note that these figures represent the reported income levels associated with happiness in each respective city, as per S Money’s research.