Turns Out, Money Does Buy Happiness. Here’s How Much of a Pay Bump Would Make Employees Happy

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Contrary to popular belief, more money can make life better. Keep reading to learn the findings of a recent study and what they could mean for you. 

We’ve all heard the saying: Money can’t buy happiness. On its face, this old adage is meant to remind us that materialism isn’t the true path to personal fulfillment. And this is true — but having enough money in your checking account to pay your bills, save, invest, and pursue the fun stuff in life certainly boosts a lot of people’s happiness quotient.

Recently, an Empower survey found that different generations reported needing different salaries to feel happy, and the amounts listed might surprise you. Let’s take a closer look at salaries and happiness, and discuss whether it’s worth targeting higher pay to improve your own life and personal finances.

The salary it takes for different generations to feel happy

There was a pretty wide range of salaries needed to make those surveyed by Empower happier, and the data was collected by generation. I wasn’t all that surprised to see the salary figure for my generation. Millennials surveyed reported needing a salary of $525,947 to feel happy, and lest you think that indicates millennials are greedy, I say differently.

My generation is at an economic disadvantage, and some of us are facing raising the next generation as well as caring for our aging parents. We earn 20% less than baby boomers did at our age, despite being better educated, according to research compiled by New America. So it doesn’t shock me to hear that people around my age are seeking more financial security in an increasingly uncertain world.

The income targets reported by other generations were a bit more moderate. Gen Z is hoping for a happiness-generating salary of $128,084, while Gen X’s figure is $130,344. Baby boomers’ salary target was $124,165. The average across all generations was skewed by the higher figure for millennials to $284,167.

Would a higher salary make you happy?

So does this data mean that you, too, should seek out higher pay for the express purpose of being happier? Honestly, I say yes. While no amount of money can fill a hole in your soul (I recommend friends, travel, pets, and hobbies for that), earning more can make it easier to focus your energy on making a fulfilling life.

I’m speaking from experience. After I changed careers to one with higher earning potential in 2021 and worked hard to get out of debt in 2022, my money stress level improved to a huge degree. I no longer have to live without emergency savings, and not worrying about where I’d get the money for a car repair or a dental procedure has been great for my mental health. If you can sleep better at night and not stress about having to take on debt (which would make it harder to plan for a secure future), happiness might indeed be closer at hand for you, too.

How can you go about increasing your pay? There are a few ways to approach it.

Fight for a raise: If it’s been a while since you got a raise at work, it’s time. I recommend putting together some information to show your boss how much you’ve contributed and that you’re an employee worth keeping and paying better.Add to your skills: If you can add new experience to your resume (perhaps there’s a coding class you’ve been considering), you can leverage that into higher pay.Consider a career change: If you’re currently in a field that is beset with low pay (hello, from an ex-museum professional), it might be time for a change of career. It’s worth considering what skills you can transfer to a new role — for example, my museum writing and communications experience and graduate degree made for a smoother transition to becoming a full-time writer and editor.

A higher salary can likely add to your happiness by making your life easier. Going for it is worth it — your happier future self will thank you.

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