Money can buy you happiness – up to £45,000

EARNING more money really does make you happy, according to research – as long as it’s less than £45,000 a year.

But once you hit this tipping point, the pursuit of more wealth takes you away from what really satisfies us – positive relationships and personal growth.

The research, presented to the American Psychological Association, concludes that what will actually bring longer-lasting happiness is a move away from materialism.

Study author Dr Miriam Tatzel, from Empire State College, State University of New York, said: ‘Emotional well-being rises with income, but there is no further progress beyond an annual income of about $75,000 (£44,703).’

She added: ‘Materialism is bad for consumers’ well-being. People’s wants escalate as they tire of what they have and they want something else, which in turn leads to more consumption.

‘The larger the gap between what one wants and what one has, the greater the dissatisfaction. Less materialism equals more happiness.’

Dr Tatzel also found that thrift was another path to well-being. She said: ‘This means conserving resources as well as money. Frugal people are happier with life in general.

‘That may be because avoiding the negative consequences of spending too much and going into debt is one way to avoid unhappiness.’