How Much Money Is Enough ?
![](https://cdn.prod.website-files.com/611522a5d4ede86958196317/61339aef9c9a991a96f62d23_left-over-money.jpg)
A famous 2010 study by Daniel Kahneman and Angus Deaton attempted to answer this question. They checked for correlation between household income and life satisfaction in the US.
Below is the result of their study:
![](https://cdn.prod.website-files.com/611522a5d4ede86958196317/61339ab25c8d970a9d030e0a_SzP-iDdWoBMB7FBHXWC5-LhTPcj0kOB5AqD2hOUdKU7a5seYcVQNOR3Epv2spG-oi-yEYt0bWopY1RBFWZOBBHXGGGKwrt5f7XgJQoxL9agm_xD6Ubp8dasOSGg352AF%3Dw1280.jpeg)
The rate of improvement in life satisfaction with every dollar increment in income reduces at three income thresholds.
It drastically drops after USD ~76k or INR 15.6 L (converted using PPP)
Do you think this number is correct?
What would be the ideal household income according to you?
What else is important to lead a happy life?
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