Now, I know what you’re thinking: “All your content is about money,” and yeah, you’re right. But one question I’ve had—and maybe some of you have too—is whether I’ve got the right attitude toward money.

I’ve spent my whole career around money, and I’ve seen how easily people end up feeling like they’re working for their money instead of their money working for them. What I mean is, it’s easy to get caught up in worries—Do I have enough? Am I saving enough for retirement? Will I ever pay off my debts?

Financial Stress—More Common Than You Think

In fact, the National Endowment for Financial Education found that nearly 90% of Americans are stressed about money. And while that’s understandable given everything going on in the world, it’s also pretty sad in a country with so much wealth.

What Can I Do About It?

Look, everyone’s situation is different. I’m not here to promise I can fix all your money problems or turn you into a millionaire. But no matter where you’re at financially, I think taking a step back to understand money’s role in our lives can help.

So with that in mind, let’s talk about how much money you really need to be happy—and how you can build a better relationship with your finances.

Money Doesn’t Equal Happiness

One thing that really stood out while I was researching this? There’s no perfect link between money and happiness. Sure, making more money does increase happiness—up to a point. But once you hit that point? More cash doesn’t actually buy more happiness.

There’s a 2018 study in Nature Human Behavior that looked at 1.7 million people worldwide, analyzing the connection between income and happiness. They found that, on average:

• Emotional well-being (day-to-day happiness) maxes out around $60,000–$75,000/year.
• Life evaluation (how satisfied you feel about your life overall) improves up to about $95,000/year.

What’s the Difference Between Emotional Health and Life Evaluation?

I know these terms might sound a little vague, so let me break it down:

• Life evaluation (affected up to ~$95K) = How you feel about your life as a whole (e.g., “Am I satisfied with where I’m at?”).
• Emotional health (affected up to ~$60K–$75K) = How you feel day-to-day (e.g., “Did I smile a lot yesterday? Was I stressed?”).

To measure emotional health, researchers asked things like:

• How happy did you feel yesterday?
• Did you experience joy, laughter, or stress?

How Does Money Really Affect Well-being?

The big takeaway? Day-to-day happiness (emotional health) isn’t super tied to income, but your overall life satisfaction (life evaluation) is.

Money Goes Further in Some Places Than Others

Of course, this varies. People in high-cost areas (like L.A., NYC, or Hawaii) need more money to feel the same level of comfort as someone in a cheaper area.

There’s No Magic Number

After reading this study, I don’t think $60K, $75K, or $95K is some magic threshold. The real lesson? Once you hit a certain point, more money doesn’t boost happiness much.

Overvaluing Money Is Counterproductive

If you’re obsessing over income past that point, you might be letting money control you—not the other way around. Now, I’m not saying $95K/year is the same everywhere—a family of four in San Francisco would struggle, while in other places, it’s plenty. But the key idea? There’s a point where extra money doesn’t make you much happier.

And just like you can underestimate good money habits, you can also go too far the other way—getting obsessed with money in an unhealthy way.

Earlier Research

This study actually backs up a 2010 Princeton study that found:

• Life satisfaction keeps rising with income.
• Day-to-day happiness plateaus around $75K/year.

The bottom line? Once you have enough to stop stressing, extra money doesn’t impact well-being much.

Is Money Useless?

Not at all! A raise is always nice—maybe it means early retirement, more travel, etc. But in terms of happiness?

• The jump from $40K to $60K feels huge.
• The jump from $100K to $120K (or $500K to $600K)? Barely noticeable.

Focusing on the Present

Here’s something interesting: How you ask the question changes the answer.

• Ask “How satisfied are you with your life overall?” → Higher earners report more satisfaction.
• Ask “How happy were you yesterday?” → The income-happiness gap disappears.

Methodology

Both studies used the Cantril Self-Anchoring Scale, where people rate their life on a ladder from 0 (worst possible life) to 10 (best possible life).

Money and Happiness in Practice

Let me give you an example:

• If you’re working 80-hour weeks (sucks) but making $300K/year (awesome), you might feel great about your life overall (high life evaluation).
• But day-to-day? You could still be stressed, tired, and unhappy (low emotional health).

Social Pressure

Part of this is social—we value high salaries. But money does give you options, whether it’s travel, charity, or security.

How to Use Extra Money Effectively

Even if you’re comfortable, an extra $10K/year could mean:

• More travel
• Donating to charity
• Boosting retirement savings

That’s why higher earners feel better about their lives overall—even if they’re not happier today.

Key Takeaways

The goal isn’t just to make or save the most money. It’s about using money to maximize happiness.

Recognizing That Time Is Often More Valuable Than Money

Example: If you’re making $120K/year working full-time, but could drop to 30 hours/week for $90K while still covering bills and saving? You might be happier daily, even with less income.

Developing Financial Literacy

Here’s the problem: Most Americans lack financial education.

• Over half struggle with debt (we have $14 trillion in consumer debt, including $820 billion in credit card debt!).
• 75% of Gen Z wish they’d learned more about money in school.

Increasing Wages & Financial Education

We could:

• Push for better wages (especially for lower incomes).
• Teach financial literacy in schools (or even adult education).

Because at the end of the day, happiness depends on how you use money—not just how much you make.

Final Thoughts

I’d never tell you to turn down a raise. But hopefully, this gives you a clearer picture of money vs. happiness.

• Yes, money can buy happiness—up to a point (~$60K–$75K for day-to-day joy, ~$95K for life satisfaction).
• After that? More money doesn’t mean more happiness.

So if you’re financially comfortable, focus on making your money work better for you—not just earning more.