The 'Enough' Number: How Much Money Do You Need For True Happiness?

What's the dollar amount that would let you breathe easy, retire early, or just feel content? For serial entrepreneur Andrew Wilkinson, the topic recently caught the attention of his X (formerly Twitter) followers.

The question was: "What is your ‘enough' number? How much money do you need in your bank account to feel like you're done?" The answers varied, giving insight into personal perceptions of financial security and happiness.

Some responses to Wilkinson’s post included, "I probably will never feel ‘done' at any number, it’ll be too tempting to build more when I make more," and "I did this analysis, and it's a much lower number than I thought…roughly $3M will totally do it."

Others said, "Somewhere in the $20 million to $50 million range. The problem, it always scales."

Beneath the ongoing debate about the relationship between money and happiness lies a study that offers some insights. Earlier this year, Benzinga covered research by Daniel Kahneman and Matthew Killingsworth, published in the Proceedings of the National Academy of Sciences, that examined how an individual’s annual income correlates with their happiness levels.

Happiness does increase with income, but tops out at an average of $75,000 yearly, according to their research, but the number has been debated. Killingsworth, researching happiness at the University of Pennsylvania's Wharton School in 2021, found that “experienced well-being” could actually continue to increase, even surpassing the $200,000 income mark.

Read also: Make $70,000 Per Year? You Can Retire In 10 Years, Millennial Money Founder Says

In a more recent collaboration, Killingsworth and Kahneman examined the happiness levels of 33,391 American adults, aged 18 to 65, earning a minimum of $10,000 annually per household. Those with earnings exceeding $500,000 were harder to pinpoint due to a data shortfall.

In the study, participants were asked to evaluate their own happiness. For 80% of them, a rise in earnings was directly correlated with an increase in happiness. However, for the remaining 20%, happiness seemed to level off even as their income continued to grow. An interesting observation was that for those who are financially comfortable but not happy, additional income did not necessarily lead to increased happiness.

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This story is part of a new series of features on the subject of success, Benzinga Inspire.

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