The scientific study of happiness over recent years has turned up fascinating insights into the relationship between material possessions and human satisfaction.

Contrary to what we've been told, there is indeed a correlation between money and happiness—up to the point of security. Until we have food and shelter, and some basic material possessions, we are on average less happy than those with enough.

But above the level of $10,000 a year, happiness and wealth diverge. Bill McKibben reports, in Deep Economy:

In general, researchers report that money consistently buys happiness right up to about $10,000 per capita income, and that after that point the correlation disappears. ...

The life satisfaction of pavement dwellers--that is, homeless people--in Calcutta was among the lowest recorded, but it almost doubled when they moved into a slum, at which point they were basically as satisfied with their lives as a sample of college students drawn from forty-seven nations.

This is really incredible. Money buys happiness only to the point that money buys food for one’s children and a little more.

[photo credit sxc.hu user rrss]