money buys happiness?

WASHINGTON (AP) — They say money can't buy happiness. They're wrong. At least up to a point.

People's emotional well-being — happiness — increases along with their income up to about $75,000, researchers report in Tuesday's edition of Proceedings of the National Academy of Sciences.

For folks making less than that, said Angus Deaton, an economist at the Center for Health and Wellbeing at Princeton University, "Stuff is so in your face it's hard to be happy. It interferes with your enjoyment."

Happiness got better as income rose but the effect leveled out at $75,000, Deaton said. On the other hand, their overall sense of success or well-being continued to rise as their earnings grew beyond that point. "Giving people more income beyond $75 thousand is not going to do much for their daily mood ... but it is going to make them feel they have a better life," Deaton said in an interview.

Not surprisingly, someone who moves from a $100,000-a-year job to one paying $200,000 realizes an improved sense of success. That doesn't necessarily mean they are happier day to day, Deaton said.

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Money can't buy happiness, but a study shows that we can earn it.

The study, which analyzed Gallup surveys of 450,000 Americans in 2008 and 2009, suggests that there were two forms of happiness: day-to-day contentment and overall satisfaction with one's place in the world. While a higher income brings little day-to-day contentment, it does boost people's overall satisfaction.

The study, conducted by Princeton University economist Angus Deaton and famed psychologist Daniel Kahneman, found that there's a specific dollar number, or income plateau, after which more money has no measurable effect on day-to-day contentment.

As people earn more money, their day-to-day happiness rises. That is, until you hit the magic number: $75,000 a year. After that, it's just more stuff, with no gain in happiness.