This is Optimal Finance Daily, episode 1780.

Spend less, live more, part two, by life, a physician on fire.com.

And I'm your host and personal finance enthusiast, Diana Mariam.

Today's post is actually a continuation from yesterday.

So if you're new here, it'd be best to listen to yesterday's episode first.

But if you're all caught up, let's hear part two and continue optimizing your life.

Spend less, live more, part two, by life, a physician on fire.com.

It's been more than a decade since Donald came in and Angus Deaton published the article

High Income Improves Evaluation of Life, but not emotional well-being.

Establishing the loose connection between income and happiness.

The conclusion was that quote, high income buys life satisfaction, but not happiness.

And that low income is associated both with low life evaluation and low emotional well-being.

The number at which happiness failed to rise with higher income was 75,000 in 2010.

Inflation has pushed that closer to 100,000 in the 2020s.

But you'll still hear the 75,000 quoted quite often.

If you read the study, you'll note that life satisfaction, as measured by the study,

did continue to rise with rising income.

But we see diminishing returns with small incremental increases, even with large steps up in income.

Quote, we infer that beyond about 75,000 dollars a year, there's no improvement, whatever,

in any of the three measures of emotional well-being.

In contrast, the figure shows a fairly steady rise in life evaluation with low income over the entire range.

The effects of income on individuals' life evaluations show no satiation, at least to an amount well over 120,000,

...