Why Money Might Not Be the Root of Your Happiness
Just when I thought I’d read every post on the Seedly community Facebook page, I stumbled onto a fancy study from the Lee Kuan Yew School of Public Policy’s Institute of Policy Studies (IPS). It’s the third episode of a trilogy that dives deep into how Singaporeans actually feel about life. As a personal‑finance writer, my eyes were fixed on the part about how income links to happiness and satisfaction.
What the Study Says
- Money is a big deal. The researchers found that having a decent income definitely makes people feel more secure and less worried.
- But there’s a twist. Once your salary passes a certain “comfort” threshold, the boost in happiness starts to flatten out. After that point, extra cash doesn’t translate into noticeably happier folks.
- Social comparison matters. Your neighbors’ wages and your own network shape how you gauge your own satisfaction.
- Personal values weigh in. People who value long‑term security over short‑term thrills tend to link income more strongly to contentment.
- Spending habits count. Those who spend on experiences rather than material goods report a bigger “money‑makes‑happy” effect.
Take‑away for Every Budget‑Follower
In plain English:
- Get a stable paycheck, and you’ll feel safer and less stressed.
- Once you’re comfortably settled, chasing higher salaries won’t magically raise your joy‑meter.
- Spread good vibes by focusing on meaningful spending—think travel, family meals, or a hobby—rather than piling on gadgets.
- Remember, what makes you happy isn’t just the number in your bank account; it’s how you use it and who you surround yourself with.
Bottom Line
Money can help you smoke out basic worries, but the real happiness engine is fueled by relationships, purpose, and how you spend what you earn. So next time you’re budgeting, think not only about the next paycheck, but about the experiences you’re investing in—they’ll pay back far more in smiles than any salary stack could.
TL;DR: Does higher income = More happiness for Singaporeans?
Methodology
Our Data‑Gathering Adventure
Picture a buzzing newsroom in late 2019: the WVS crew was on a mission to capture the pulse of Singapore residents. The 2020 Singapore instalment kicked off in November and wrapped up in March, with the trusty IPS Social Lab doing the heavy lifting.
The VIP Cast: 2,012 participants
Out of a ripe pool of Singapore’s adult residents, we managed to get a solid turnout of 2,012 people—enough to paint a pretty accurate portrait of the nation’s values.
How We Picked the Households
First, we asked the Singapore Department of Statistics for a magic list: 3,000 household addresses that were randomly generated. Think of it as a game of Monopoly, but the dice were the statistical universe.
Did Many People Show Up?
Our response rate was decent—roughly two‑thirds of those we invited actually completed the survey.
Balancing the Numbers
To make the results truly reflective, we weighted each answer. This ensures that the sample mirrors the national mix in age groups, gender, and race, just like a well‑concentrated smoothie.
Why It Matters
With this careful weighting, we can confidently compare findings across different years of the survey and get a reliable sense of how Singaporeans think about their value systems.
The Bottom Line
- Our findings represent the adult resident population of Singapore.
- Interviewing every single adult? That would take forever. Instead, this statistically strong sample is the best we can hope for.
Overall happiness level by income (Singapore residents)
Money + Mood: Why Cash Can Boost Your Smile (But Not Always)
Take a look at the inside scoop from a recent survey that broke down how folks in Singapore feel about their lives based on how much they make:
Happiness by Income Band (Numbers of Respondents = 1,222)
Below $1,500
Not at all happy: 0.90%
Not very happy: 11.10%
Rather happy: 57.60%
Very happy: 30.40%
Either ‘rather’ or ‘very’ happy: 88.00%
$1,500 – $2,999
Not at all: 0.30%
Not very: 11.60%
Rather: 62.30%
Very: 25.80%
Either: 88.10%
$3,000 – $4,999
Not at all: 0.30%
Not very: 10.20%
Rather: 66.40%
Very: 23.10%
Either: 89.50%
$5,000 – $6,999
Not at all: 1.20%
Not very: 6.70%
Rather: 73.90%
Very: 18.20%
Either: 92.10%
Above $6,999
Not at all: 0.60%
Not very: 5.70%
Rather: 71.70%
Very: 22.00%
Either: 93.70%
Bottom line: the richer you are, the more likely you’re in the “rather happy” or “very happy” camps. But hey, it’s not a straight‑line story—happiness seems to creep a bit waver as finances skyrocket.
The Science of “Satisficing” Money
In 2018, a Purdue University study turned up a fascinating pattern. Researchers combed through data from the massive Gallup World Poll, which asked over 1.7 million people worldwide to rate their lives on a scale from 0 (worst possible life) to 10 (best possible life). This “Cantril Ladder” is actually a pretty solid way to tick off how people feel about themselves.
When they trended the ladder scores against each person’s income, the picture was clear: the more money, the higher the mood. Yet, there’s a sweet spot—an income satiation point. For the average Singaporean, that sweet spot lands around an annual salary of about US$93,000. Once you cross that threshold, every extra dollar does a lot less for your grin.
Think of it like this: a little extra cash can get you a nicer apartment, more gadgets, or a decent holiday, but after you’re comfortably settled, the extra spoils don’t pile up as noticeably.
Why the Diminishing Returns?
- Basic needs cover themselves.
- Social ties and health remain the real happiness boosters.
- Money’s power to lift spirits fades once you’re beyond your basic comforts.
So, if you’re chasing that high‑five of joy, the best strategy is to reach and pass that ~/.93k mark, then focus on family, friends, and overall life satisfaction—not just the bank balance.
Bottom Line for the Money‑Mojo Crowd
More cash = more contentment (up to a point). After about $93k per year, the lift gets flatter. It’s a reminder that the best perks in life aren’t always price tags—they’re often people, health, and a sense of purpose. Happy scrolling!
More money likely to make you happier but happiness is a choice
Why People With Less Money Often Score Higher on Happiness
It’s a funny paradox that slipped on me while I was skimming through a recent study. Those earning under $1,500 or between $1,500 and $2,999 in Singapore reported being quite happy compared to folks with larger paychecks.
What the 2018 Study Found
Research published in the journal Emotion set out to beat the noise of some fierce money chatter in the city’s high‑cost living environment. Assistant Professor Paul K. Piff and grad student Jake P. Moskowitz at UC Irvine reached out to over 1,500 Americans, spanning ages 24 to 93.
They discovered that the lower‑income members of the group treasure their relationships more than any other form of pleasure. When you’re looking after a budget, you learn that the richer experience comes not from a fat wallet but from the warmth of a good friend’s smile or a thoughtful conversation.
Key Takeaways from the Findings
- Relationship‑Centric Joy: Those who earn less often find contentment by caring for and connecting with people instead of chasing material goods.
- Compassion as Currency: Even with limited financial resources, the emotional “wealth” that blossoms from sharing love and empathy fuel enduring happiness.
- Higher Earners: Their happiness tends to be self‑oriented, revolving around pride, personal achievements, and a sense of self‑worth.
Paul Piff’s Insight
He put it plainly: “People who are poorer rely heavily on others to get by. They focus on connecting, compassion, love—elements that bind them to one another and bring real delight.” That’s the power of relational networks over material ones.
Thinking on Happiness: A Quote That Strikes
To wrap things up, I’m reminded of a thoughtful line from former NFL star Ralph Fulsom Marston:
“Happiness is a choice, not a result. Nothing will make you happy until you choose to be happy. No person will make you happy unless you decide to be happy. Your happiness will not come to you. It can only come from you.”
It’s not about dismissing the struggles of living on a smaller paycheck; it’s about recognizing that happiness, in many planks of life, is a choice we all possess.
Takeaway: Whether you earn a few hundred or several thousand, the trick is to mine the joy that springs from relationships, generosity, and the decision to stay content even when money is scarce.
