Too Much of a Good Thing: Financial Education Benefits Center Learns Making Too Much Money Can Be Detrimental to Happiness

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Jul 04, 2018, 08:00 ET

SAN RAMON, Calif., July 4, 2018 /PRNewswire/ -- For ages adults have told children that "money doesn't buy happiness." Anyone who once answered "yes it does, you just don't know where to shop for it," may have been more correct than imagined, according to a study published by Purdue University. The study, based on information gathered from over 1.7 million people across the globe, found that "there is an optimal point to how much money it takes to make an individual happy," and that making more money than this can actually hamper people's emotional well-being and negatively distort their personal evaluation of their own life. Financial Education Benefits Center (FEBC), as a membership benefits company specializing in health, wellness, and financial benefits, is concerned with the possibility that career and financial goals, when achieved, may counterintuitively decrease a person's level of happiness.

"That almost makes no sense," a startled Jennifer Martinez, Manager of FEBC, responded, "but maybe the way a person views happiness comes into play. Or maybe it's just the old saying, 'more money more problems.'"

The study concluded that earning $95,000 a year is optimal for happiness and a positive self-evaluation. This figure, of course, is an average, as different demographic factors dictate that the number be higher or lower in some places (for example, in New Zealand $125,000 is the magic number, while in much of Latin America $35,000 will foster the same emotions).

The issue comes with making more money than that. When a person is working towards the income level that the study found should make them happiest, they tend to focus their financial decisions on meeting basic needs like housing, utilities, and paying off debt. Meeting these needs fosters happiness. Once this pay threshold of $95,000 has been topped, a person is more likely to focus their finances on material possessions which are then compared with possessions belonging to other people making similar or more money. This makes people less happy and less content with their financial situation. It seems that if there really was a happiness store, shopping in the expensive section might be counterproductive.

"Thankfully, with the benefits FEBC offers," said Martinez, "our members may not need to make $95,000 a year to achieve happiness. With the multitude of discounts available through FEBC, a person's buying power may hopefully be more likely to outperform their cash flow. Basic needs will present less of an expense, and more money can be put towards whatever makes them happy."

About Financial Education Benefits Center

Financial Education Benefits Center is located in San Ramon, California. The membership company has already helped thousands save money and obtain the necessary education required to live a financially healthy life.

Financial Education Benefits Center has partnered with several name brand third-party companies to expand the financial and educational products and services available to its members and to provide a variety of wellness services as well.

Financial Education Benefits Center Newsroom

Contact

To learn more about Financial Education Benefits Center, please contact:

Financial Education Benefits Center
2010 Crow Canyon Place Ste. 100
San Ramon, CA 94583
1-800-953-1388
[email protected]

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SOURCE Financial Education Benefits Center