Money does buy independence, and independence is one aspect of happiness. But when you’ve covered your basic financial necessities, does more money make you happy?
Much of the research into the field of happiness — to say nothing of simple common sense - suggests that at the level of the individual, happiness is heavily influenced by life events (Did you get the big promotion? Have a fight with your boyfriend?) as well as by psychological traits (self-esteem, optimism, a sense of belonging, the capacity to love, etc.)
The correlation between happiness and family income is very strong indeed - reported happiness rises in a nearly straight line through eight levels of annual family income. At the highest income category — $150,000 and above - fully 50% of respondents report being very happy; by contrast, just 23% of those who have a family income below $20,000 say they are very happy.