What’s the latest price for happiness?
You’ve probably noticed that inflation has worked its way into most areas of your budget but as well as petrol and veges, apparently you need more money to buy happiness these days too.
In the perennial quest to determine the relationship between income and happiness, a recent study from Purdue University has shed new light on how much one might need to feel truly content, and the findings are particularly illuminating for New Zealand.
Purdue University’s extensive research, involving a sample size of 1.7 million worldwide, sought to find the financial threshold at which happiness plateaus. In simpler terms, they were looking to answer the question: “How much money do you need to be happy, and after what point does additional income no longer significantly improve happiness?”
To achieve a state of contentment in New Zealand, you need an annual income of $193,727 or US$114,597, according to Purdue’s data. This places New Zealand as the seventh most expensive country in the world in the pursuit of happiness. This figure contrasts sharply with the average household income reported in 2022, which stands at around $117,126, indicating that many Kiwis might be falling short of this happiness benchmark.
The study offers a global perspective, ranking countries based on the cost of contentment. While New Zealand’s high ranking may raise eyebrows, the country isn’t alone in its elevated requirements for happiness. Neighbours across the Tasman, for instance, have an even steeper hill to climb, with Australia ranking as the third most expensive place for contentment.
But what does this all mean for the average Kiwi? It’s essential to understand that while such studies provide a broad overview, they don’t delve into individual nuances. Happiness, inherently subjective, varies across individuals, shaped by personal experiences, values, and circumstances. The Purdue study does, however, underscore the broader economic challenges that New Zealanders face, especially when juxtaposed against the backdrop of increasing living costs and socio-economic disparities.