'A theory devised by Richard Easterlin in 1974 put forward the idea that an increase in income does not necessarily increase ones happiness. It appeared to be the case that once our basic needs are met, an increase in income does nothing for one’s wellbeing. This theory and its conclusion subsequently became known as the Easterlin paradox.
Well, as we have probably all suspected, this may not be true. Betsey Stevenson and Justin Wolfers have produced research that shows that as someone’s income grows, their happiness usually grows as well. Which is nice.
But what does this mean for us? Is money the be-all and end-all of our efforts? Should we channel all of our time and energy into chasing cash? In short, probably not. If we want to see why money really makes us happy we have to look at the things that actually make us happy.
Yes see, whilst things like love, memories and even smiles may seem free, a closer look reveals that the little things in life may in fact cost much more than you imagine. The old adage ‘money can’t buy you happiness’ definitely needs revising. Yes, money can’t buy you happiness, but as our infographic shows, it sure does help.'