According to a recent survey, many Americans have a specific amount of money in mind that they believe will lead to their happiness, contradicting the common belief that happiness isn’t tied to wealth.

The financial advice platform Cardrates.com discovered that 56% of Americans would feel satisfied with a liquid net worth exceeding $200,000.

The survey included 786 working Americans aged 18 to 43, revealing that while cash alone might not bring joy, having financial security helps alleviate worries about unexpected expenses.

“Having savings can reduce anxiety about future issues, like medical emergencies or job losses,” noted Jon McDonald, the author of Cardrates’ overview of the research. “This sense of security significantly contributes to overall happiness.”

Over the past decade, the needed amount for happiness has increased; a Gallup survey from 2010 indicated that a $75,000 income was the sweet spot for happiness.

By the end of 2023, the average salary for Americans was $59,384, as reported by the U.S. Bureau of Labor Statistics.

As income grows, so does the happiness threshold

The research indicated that those earning higher salaries tend to desire even more money to achieve contentment.

Among individuals making $40,000, 74% said they would be satisfied with an income of $150,000, compared to 64% of those already earning that amount.

McDonald explained this trend using the Hedonic Treadmill concept, stating, “People continually pursue higher earnings for happiness, but often revert back to their baseline happiness level after a temporary lift.”

Differences in attitudes across generations regarding money and happiness

The survey highlighted that millennials and Gen Z have distinct views on salary versus investments.

Millennials expressed a preference for higher salaries, while Gen Z participants prioritized having a greater liquid net worth.

Seventy-five percent of millennials stated they would feel satisfied with a $150,000 salary, while 71% of Gen Z agreed; however, 84% of Gen Z expressed comfort with having a $1,000,000 liquid net worth, in contrast to 81% of millennials.

McDonald attributed these differences to the economic contexts each generation experienced, mentioning that for millennials, a larger paycheck represents a significant achievement, especially given the financial setbacks caused by the Great Recession, while Gen Z, influenced by the COVID-19 pandemic, views asset accumulation as a more reliable strategy.