How much do you really need to earn to be happy? According to several French studies, the threshold of happiness is much more accessible than we imagine.
Does money buy happiness? The question crosses generations, from philosophers to economists. And recent studies show a more nuanced answer than we imagine: yes, money contributes to happiness… but only up to a certain threshold.
In France, this threshold would even be relatively modest. According to a study published in 2024 by INSEE, the level of life satisfaction reaches a form of “satiation” around 30,000 euros per year in standard of living for a single person. Beyond that, earning more improves felt well-being much less. In other words: going from 1,200 to 2,000 euros per month profoundly changes your life. Go from 5,000 to 8,000 euros, much less.
This INSEE study surprised with its main lesson: the “happiness income” is not that high. Researchers speak of a “satiation threshold”, that is to say the level from which an increase in income no longer brings a major gain in life satisfaction. In France, this threshold is around 30,000 euros per year of standard of living, or around 2,500 euros per month for a single person.
The result is consistent with several studies by CEPREMAP and the Well-being Observatory: money greatly improves daily life when it allows people to escape financial insecurity, but its impact then quickly diminishes. Clearly, economic happiness would be more linked to the absence of stress than to the accumulation of wealth. Economists observe a simple phenomenon, the first additional euros are used to satisfy essential needs: housing, food, health, leisure, security. Each increase in income then produces a concrete effect on the quality of life. But once these needs are met, the psychological effect lessens.
In an interview for the media LegendLaurent Chaudeurge, French financier and asset manager, also shares his ideas on the issue. He explains: “The threshold is quite low. Your happiness curve increases a lot initially because you have to survive, find shelter, heat yourself… And once you have satisfied your primary needs, we will say, your dependence on happiness no longer depends on money.” INSEE researchers also note that income losses have a stronger emotional impact than increases. Losing 500 euros per month causes more pain than gaining 500 brings joy.
In summary, research all converges towards the same conclusion: money reduces unhappiness more than it creates happiness. Having enough to live with dignity, have decent housing, sometimes go on vacation or save a little clearly improves life satisfaction. But beyond a certain threshold, happiness does not rise indefinitely with income.
