Humanity has been debating the truthfulness in that old adage "money can't buy happiness" for centuries, but it seems we still don't have a concrete answer. Some research has found that it does, but only up to $75,000 a year (circa 2010). Other studies have found that it does, as long as you're using it to buy yourself time, by paying for things like housekeeping services, or to purchase consumer goods that you think fit your personality. Now, psychologists from Purdue University are wading into the debate with a new study on money and life satisfaction, finding that people are most satisfied when pulling in a salary of $95,000 a year (per person, that is, not per family).
The study, published earlier this year in Nature Human Behavior, analyzed data from the Gallup World Poll, which includes a representative sample of participants from 164 countries. They were looking to define a point of "income satiation," the point at which more money doesn't make you any happier. It examined responses that had to do with subjective well-being regarding "life evaluation" (as in, where do you sit on a scale of the worst life possible to the best life possible?) and emotional well-being (how did you feel yesterday?).
The researchers found that the ceiling at which more money doesn't provide any more life satisfaction was $95,000, on average. After that, in fact, subjective well-being started to fall as income went up. (Just as Biggie warned us.) Emotional satisfaction, on the other hand, came slightly cheaper—positive emotions were correlated with more money up to $60,000, and negative emotions decreased as salary increased, up until $75,000.