Happiness Levels and Income Levels

Ariella Dayan (326883881) Quantitative Research Methods- Shani Greenspan November 25, 2012 The Correlation of Income direct and satisfaction Level This study for view investigate the relationship between income and felicity. A very(prenominal) popular question in todays society is whether property gouge buy happiness. Happiness has been shown to be related to many things. It is install to be related to favorable class, success, power, health, valued belongings, religious beliefs, companionship, being industrious in a secure job, having a full social manner, and oftentimes or less accumulation of property.Research shows that bullion does non buy happiness but it comes indirectly from the higher rank in society that money brings. The rank-income hypothesis was tested and ready that the ranked position of an individuals income counters general life satisfaction. Once someone has a large marrow of money they may become part of a different social group which brings m uch confidence and satisfaction. A persons satisfaction and self-esteem will increase if his social rank increases or if those who once had the same social rank him decreases.People naturally feel break off and more satisfied if they be better than others. (Boyce, C. et al. 2010) People dedicate so much energy in trying to stick more money, when having more money does not make them that much happier. People may be happy with their current level of wealth and stop trying to accumulate more if not for the counsel humans have to compargon themselves with others in every way mathematical attractiveness, intelligence, height, weight, and crucially, financial success. The writer H. L. Mencken said, A wealthy man is one who earns $ hundred a year more than his wifes sisters husband. This frustration of seeing someone better than you becomes a huge motivator when it comes to making more money. People argon very concerned with the phenomenon of Keeping up with the Joneses. Hollywood ma de a movie about a wealthy and good looking American family and the affects they have on the people living in their neighborhood. The movie presents us with conspicuous consumption and comparing each others pricey possessions and social rank. People will always to try to move leading of as many of their friends as possible in order to mitigate themselves.People try to enhance their social hierarchy by making supernumerary investments in order to satisfy their preoccupation with their relative social stand up which the socio- economic class isnt Ariella Dayan (326883881) Quantitative Research Methods- Shani Greenspan November 25, 2012 able to do, although we can see this form of competitiveness in the socio-economic class as well. A recent study shows that a group of people in the US who are most opposed to an increase in the minimum earnings are those who make just above the minimum prosecute.Because if the minimum wage increases, these people will now be in last pose, alon g with all the people whom they used to feel superior to. (Norton, M. 2012) other reason why money translated to happiness often is because money has a property that many other things that matter in life do not. Money is something that can be counted. When people reflect on whether they are better off this year than last, they cannot always give an exact answer. A person cannot say that their life is 32 per cent more meaningful. This is not a calculation we are accustomed to making. Salary, on the other hand, is measurable.If a person is making a better salary they will figure that they are doing better in their life. This also may explain why people are always buying larger houses and larger televisions. As people become richer, they quickly grow accustomed to bigger houses, flashier cars, and precedent garments, but their possessions dont actually make them much happier. (Norton, M. 2012) Studies show that even draft winners, after an initial period of adjustment, dont become much happier. The reason for this is because the faster people try to get ahead, the quicker they end up buns where they started.Another research conducted in the University of British Columbia in Vancouver, asked people to predict how happy they would be if their yearly income was anywhere from $5000 up to $1 million. later on this, the people were asked how much money they really earned and how happy they were with their lives. It was found that people generally overestimated the impact of money on happiness. Those who earned $25,000 a year predicted that their happiness would double if they made $55,000. But when we measured the happiness of people at these two levels of income by having them rate their satisfaction with life on a cale from 1 to 10, it was found that the wealthier group was only 9 per cent happier. On the other hand, people who make very half-size money do become significantly happier when they earn more. But a large survey of people in the US showed that the impact of supererogatory income on happiness Ariella Dayan (326883881) Quantitative Research Methods- Shani Greenspan November 25, 2012 tends to fade around an annual salary of $75,000. There is no data suggesting that making more money makes people less happy but it does stop making them much happier. (Cassidy, J. 008) What people can do in order to gain happiness in a better manner is by doing something unusual with it or giving it away. It turns out that spending money on yourself does not make you any happier, but spending on others does. Donating to charity or buying coffee for a friend is an efficient way of go cash into happiness. (Cassidy, J. 2008) A worldwide survey was created in 2006 by Gallup. He asked people to imagine themselves on a ladder with steps numbered from nix to 10, with the bottom of the ladder representing the worst possible life for you and the top representing the outgo possible life for you. The respondents were then asked to say which step they wer e standing on. If you send word people to think about the best possible and worst possible lives they could be living, you are surely inviting them to compare their living standards with those of people elsewhere. This methodological quirk alone could easily explain why residents of poor countries deal low scores and residents of rich countries report high ones, and it wouldnt have anything to do with money making people happier. ( Buchanan, M. 2009) The conclusion is that happiness and money do correlate but only to a certain extent.People are more concerned with their social class, getting ahead and where money can get them in life than the actual amount of money. This topic should continue to be researched in order to find if in today generation a person can actually be happy with what he or she has without comparing themselves to their peers and surroundings. Ariella Dayan (326883881) Quantitative Research Methods- Shani Greenspan November 25, 2012 References Boyce, C. Christo pher J. 1 Brown, Gordon D. A. 2 Moore, Simon C. (2010). Money and Happiness Rank of Income, Not Income, Affects Life Satisfaction.Psychological Science, Vol. 21 Issue 4, p471-475, 5p http//web. ebscohost. com. ezprimo1. idc. ac. il/ehost/ degree? sid=daeaee80-c08b-433b-84c3-094cde8b9e7c%40sessionmgr10vid=1hid=13bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRldb=a9hAN=62587809 Norton, M. I. (2012). The more money, the merrier? New Scientist, 215, 40-41. http//web. ebscohost. com. ezprimo1. idc. ac. il/ehost/ occurrence? sid=86a4832c-2e11-4055-a8c7-ba24949afac4%40sessionmgr11vid=1hid=13bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRldb=a9hAN=78189804 Cassidy,J. 2008) Happinness is. Conde Nast Portfolio Vol. 2 Issue 7, p36-36, 1p http//web. ebscohost. com. ezprimo1. idc. ac. il/ehost/ stage? sid=ab06d568-bb15-434e-b357-a6330d98f4a5%40sessionmgr4vid=1hid=13bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRldb=bthAN=38013329 Buchanan, M. (2009) Money in Mind. New Scientist Vol. 201 p26-30, 5p http//web. ebsc ohost. com. ezprimo1. idc. ac. il/ehost/detail? sid=81a76105-82e3-428d-8827-47f8203d01bc%40sessionmgr111vid=1hid=126bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRldb=a9hAN=37249111