Boffins confirm money makes us happy

Wealth equates to happiness, but low income earners get more of a kick out of increasing their bank balance than their rich counterparts according to research funded by Australian Unity.

The quarterly Australian Unity Wellbeing Index, released in conjunction with Deakin University and Australian National University aims to objectively measure how Australians feel about life and whether it is getting better or worse.

“The effect of additional wealth to increased wellbeing is most evident in people from low income households,” according to Deakin University professor Robert Cummins.

The research found the addition of $15,000 to the low income household has twice the power to raise the wellbeing of the group compared to an additional $60,000 to a high income group.

But low income is not a barrier to happiness according to Cummins who said couples and widows on low incomes were able to maintain normal levels of wellbeing.

“However, as soon as a potential source of stress is introduced, such as children, being a sole parent or divorcee - personal wellbeing drops below the normal range,” he said.

“For these groups, the addition of higher income generally restores normal levels of wellbeing.”

“This is because money is a flexible resource that allows people to avoid negative situations that may damage their wellbeing,” Cummins said.

The Index is based on quarterly surveys using the same core index questions.

Over 2,000 people over the age of 18 are contacted by telephone, randomly selected throughout Australian metropolitan and country areas.