Can you really put a price on happiness? According to this new study from Purdue University and GOBankingRates.com, you can. The study found that the minimum annual salary needed in order to be happy in California is exactly $143,220.
Of course, happiness is subjective. However, the amount of money you’re making can directly affect your life satisfaction and well-being. If you have a sufficient amount of money to pay your rent and all of your bills, eat healthy food, and go to the doctor, then of course, you’re going to feel more satisfied and even happier in your life.
Additionally, it’s important to note that this particular study makes no mention of whether this salary is for a single person or parents with children. It also doesn’t mention if this particular amount is before or after taxes.
The study from Purdue University found that the optimal income amount for “life satisfaction in North America” is $105,000. GOBankingRates.com then took that information and combined it with each state’s cost-of-living index to determine how much money someone would need in order to be happy in each state in the U.S.
According to this data, California requires the third highest minimum annual salary in the United States in order to be happy. Only Massachusetts and Hawaiʻi have higher salary requirements than California for happiness. Massachusetts requires a minimum annual salary of $155,400, and Hawaiʻi requires the eye-wateringly large number of $188,160.
The study cites “California’s notoriously high cost of living” as the main reason for this large number. And as we can all attest, living in California is not exactly cheap. Plus, according to the study, California’s unemployment rate is very high at 4.7%. Only Nevada has a higher unemployment rate than California.
Secret L.A.’s own very unofficial, unscientific research has shown that most Angelenos are divided on the exact amount of money required to be happy. Some of the responses we’ve received from locals include:
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“Comfortable? 500k”
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“With a family of one child at least $150k a year”
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“1 trillion dollars”
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“Six figures at least.”
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“Single 140k after taxes and 250k with family after taxes”
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“$250-300k a year. That’s to be comfortable in the middle to upper middle class.”
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“LA is not comfortable. You don’t go there for comfort. You go there to sharpen your sword.”
So now we know that an annual salary of $143,220 will buy you happiness in California. Although, there’s still no word yet if money can buy you love.