Most people believe that changes in income are linked to their happiness, well, at least most of the time. However, according to a new study conducted by University of Stirling, that is not the case.
For the purpose of the study, as many as 18,000 individuals were analyzed on their levels of income change and satisfaction from life over a period of nine years. The study findings revealed that change is income is relevant only when people experience a loss of income. Researchers at University of Nottingham and University of Stirling suggested that for most people happiness is about preventing loss rather than aspiring for constant financial gain.
The study samples included participants from Germany and the U.K. who were asked about their income levels and their overall satisfaction with life. Participants were also asked about their personality at the start of their study.
The research findings revealed that personality notwithstanding, increase in income did not impact the satisfaction index. However, only when people lost income a reduction in their satisfaction was observed. This was much greater in people who reported themselves as meticulous in terms of attitude toward life and work, efficiency in the work they do and overall enthusiasm for life.
"It is often assumed that as our income rises so does our life satisfaction, however, we have discovered this is not the case," said Christopher Boyce, lead author of the study from Behavioral Science Centre at the University of Stirling. "What really matters is when income is lost and this is only important for people who are highly conscientious."
The study revealed that for people who were even moderately diligent, loss of income had more than twice the negative impact on their happiness as compared to other less conscientious people.
"Continually increasing our income is not an important factor for achieving greater happiness and well-being for most people living in economically developed countries," Boyce said. "Instead, we should aim for financial stability to achieve greater happiness, while protecting those individuals who experience negative income shocks."
The study was funded by funded by The Economic and Social Research Council.
