Money Can Buy Happiness And More Till You Touch $75,000, Study

Now you have been told, though you never believed it, that money cannot buy happiness. So that was right, wasn't it?

Wrong. Money can indeed buy happiness, according to a survey conducted by the U.K.'s Office for National Statistics. It shows that a person's "life satisfaction, sense of worth, and happiness" is directly linked to the amount of wealth he or she has.

Hence, a study shows that it is a big bank balance, not the size of your house or car that makes you happy or improves your levels of personal well-being, according to Glamour.

The study, conducted by the Princeton economist Angus Deaton and famed psychologist Daniel Kahneman, also explains that there is a specific dollar number, or income plateau, with the magic income being $75,000 a year. Even as you earn more, you can increase your happiness till you earn $75,000.

After that, money does not give you any happiness.

"The results from the [survey] show that overall wealth has a positive effect on individuals increasing levels of life satisfaction, sense of worth and happiness while at the same time, decreasing levels of anxiety," the report stated, according to HNGN.

"If this is considered across the distribution of net financial wealth, individuals living in households in the lowest quintile are more likely to report low levels of personal well-being than similar individuals living in households in the middle net financial wealth quintile," it added.

Check out the entire study.