What’s the true price of happiness? According to this study of global incomes, the answer is a lot

Researchers at Purdue University have come up with a theory about how much money you need to be happy, and it’s based on where you live. 

They found that New Zealand is the seventh most expensive place to be happy. To be really happy in Aotearoa, you need to make at least $193,727 a year (or $114,597 in US dollars). That’s a lot of money! The average household income in 2022 was around $117,126, so happiness is still out of reach for most people. 

Purdue University looked at how much money you make and how happy you are. They studied over 1.7 million people from all over the world and found that there’s a point where more money doesn’t make you happier. Now, a new study using Purdue University’s data has created a list of the cheapest and most expensive places to be happy. S Money, a currency exchange company, calculated the cost of happiness in US dollars for over 500 cities in 164 countries. They found that Australia is the third most expensive place in the world to be happy. Brisbane and Sydney are both in the top 10 most expensive cities for joy. The average price of true happiness in Australia is $205,830. In Brisbane, it’s even more expensive, with the average price of happiness being $225,511. But don’t worry, there are still places where you can be happy without breaking the bank. Sierra Leone is the cheapest country in the world to be happy, with life fulfilment being valued at just $14,711 a year. Suriname is second cheapest, with life fulfilment being valued at $17,424, and Madagascar is third cheapest, with life fulfilment being valued at $19,293.

While happiness generally costs more in cities than in rural areas, there are some surprisingly affordable cities for those seeking joy.

In Bucaramanga, Colombia, you can enjoy a year of happiness for just $16,900. With a population of 581,000, it’s the world’s most budget-friendly city for happiness.

On the other hand, Auckland, New Zealand, was found to be the most expensive city for happiness, costing $207,000 per year and ranking 20th globally. In contrast, Christchurch, the cheapest city in New Zealand, offers contentment at a more reasonable $180,000 per year.

While happiness is closely linked to the cost of living, it can also be influenced by the amount needed to protect oneself from negative emotions.

Interestingly, the Islamic Republic of Iran was found to be the most expensive country to live in the world, with Iranians valuing happiness at $239,700. Meanwhile, the average household income in Iran is $3,340 in cities and $1,973 in rural areas, according to the Statistical Center of Iran.

While money can’t buy happiness, it can certainly help you plan a fun vacation

According to Harvard’s Department of Psychology, the relationship between money and happiness is surprisingly weak. A study titled “If money doesn’t bring you happiness, you aren’t spending it right” suggests that people often spend more money than they actually enjoy.

However, vacations were identified as a top investment for happiness-seekers. Professor Daniel T. Gilbert noted that the anticipation of traveling can often be more enjoyable than the actual holiday itself.

In fact, a study conducted in 1997 found that people viewed vacations in a more positive light before the experience than during it. This suggests that anticipation can sometimes provide more pleasure than consumption simply because it’s not tainted by reality.

Interestingly, it was also found that taking a lifetime of small trips can lead to greater happiness than saving up for one or two big bucket-list items.