Recent research has begun to distinguish two aspects of subjective well-being. Emotional well-being refers to the emotional quality of an individual’s everyday experience—the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one’s life pleasant or unpleasant. Life evaluation refers to the thoughts that people have about their life when they think about it. We raise the question of whether money buys happiness, separately for these two aspects of well-being. We report an analysis of more than 450,000 responses to the Gallup-Healthways Well-Being Index, a daily survey of 1,000 US residents conducted by the Gallup Organization. We find that emotional well-being (measured by questions about emotional experiences yesterday) and life evaluation (measured by Cantril’s Self-Anchoring Scale) have different correlates. Income and education are more closely related to life evaluation, but health, care giving, loneliness, and smoking are relatively stronger predictors of daily emotions. When plotted against log income, life evaluation rises steadily. Emotional well-being also rises with log income, but there is no further progress beyond an annual income of ~$75,000. Low income exacerbates the emotional pain associated with such misfortunes as divorce, ill health, and being alone. We conclude that high income buys life satisfaction but not happiness, and that low income is associated both with low life evaluation and low emotional well-being.
We all live on two things: time and money. And people who have extra income don’t get much, if any, extra time to spend it. As a result, Hamermesh argues, each of their hours seems more valuable, and they feel the clock ticking away more acutely. Much the way it’s more stressful to order dinner from a menu with 100 items than 10, choosing between a night at the symphony, seats at the hot new play, or tickets to Woody Allen’s latest flick is in some senses more stressful than knowing you’ll have to save money by staying in for the evening. There’s a lot the rich could be doing and too few hours to do it all.
A couple years back i used to say that i have more money than i need, but not enough time. Right now i have ample of both. I better savor this while it lasts.