Will a Bigger Salary Make You Happier?

By Kate Lorenz, CareerBuilder.com

In today’s consumer-driven society, it’s often assumed that bigger is better. So of course, many people may believe that the bigger the paycheck, the happier they will be. However recent research suggests that this just isn’t so.

Are Rich People Happier?

The latest buzz¹ in the field of economics points to a myriad of studies examining the link between happiness and wealth. These studies all seek to answer the question: Are richer people happier? Prevailing research suggests no.

Obviously if you’re living in poverty, more money probably will increase your level of happiness. But if you are at a good job that supports your lifestyle, would leaving it for a 20 percent salary increase at another company mean a 20 percent increase in your happiness?

Not according to Richard Layard, director of the Centre on Economic Performance at the London School of Economics and author of Happiness: Lessons from a New Science. Layard cites² research that implies³ that although the United States has experienced extensive economic growth since 1950, people today are no happier overall than they were in the 1950s. And this same theory holds true in other wealthy, developed nations, such as Japan and Britain.

It Isn’t Easy Being Wealthy

It makes sense. With added wealth often comes added stress and increased responsibility. There’s a reason surgeons and stockbrokers make a lot of money, because there is a lot riding on their performance and decisions. And usually the higher your rung on the corporate ladder, the longer your workday and the more stressful your position. So although we can become wealthier as a country, we do not necessarily become happier.

Then there’s the slippery task of defining what “wealth” is. Like most things in life, wealth is a relative term. No matter how much money you make, if everyone around you makes a lot more, you won’t feel “wealthy.” So hanging hopes for true happiness on an extra zero on a paycheck could make obtaining happiness very elusive⁴.

Time: People’s Most Valuable Non-Renewable Resource

When asked what is the most important thing in their lives, people usually list family and relationships as No. 1. Yet one look at most working Americans’ schedules and you’ll see the amount of time spent with family usually pales to the amount of time spent working and getting ready for or getting to work. So we spend the least amount of time with what we hold dearest. This inevitably increases our level of anxiety, thwarting⁵ our attempts to be happy.

The Road to Happiness

Thankfully, today’s flexible working options help ease the work/family balancing act - a major cause of stress among employees. Work at home arrangements and flexible scheduling has greatly contributed to the happiness of working parents everywhere.

But at the end of the day, if your job or your paycheck still leave you searching for your utopia, you need to look elsewhere for internal fulfillment. Inject some happiness in your life in other ways: take up a hobby, start your own business, or train for a marathon. You may find being richer doesn’t make you happy; rather, being truly happy makes your life richer. /3500/

Kate Lorenz is the article and advice editor for CareerBuilder.com. She researches and writes about job search strategy, career management, hiring trends and workplace issues.