The Pay Raise Needed to be Happy

From the Wall Street Journal:

"In the (2023) survey, most people said it would take a pretty significant pay bump to deliver contentment. The respondents, who had a median salary of $65,000 a year, said a median of $95,000 would make them happy and less stressed. The highest earners, with a median income of $250,000, gave a median response of $350,000."

On one hand, this is why human beings are awesome. Always striving for more, always innovating, always progressing. It's never enough.

On the other, there are real downsides to being on the hedonic treadmill nonstop, feeling that you're always just one pay raise away. The dopamine rush from the promotion hits for a few days, then fades back to a baseline level of happiness.

Yes, income matters. And yes, more is going to be most impactful for those who are making less of it. And more money will certainly help to solve some of those acute money challenges, like being in credit card debt or being unable to save.

But more money, especially after a certain level, will not provide enduring satisfaction. Instead, a wants mitigation strategy is most effective. Most money challenges that we see are not about a lack of income. It's about the decision making after the income hits the checking account.

Lastly, keep in mind that wealth is relative. While you may still be looking up to who's still front of you, and thinking about that next raise, never forget how far you've come. And that there's likely a much bigger crowd of people now looking up at you, thinking about how in the world they're going to get there.

--

^{The content in this  article was prepared by the article’s author and is not intended to provide specific advice or recommendations for any individual. Voya Financial Advisors does not endorse its content, and the views expressed may not necessarily reflect those held by Voya Financial Advisors.}