Vantage | Why a salary hike makes you happy but only just, not much

In a world where the three fondest words in the English language vary from “I love you” to “dinner is served,” for many, the true magic lies in the elusive “salary increment letter.” These three words are believed to hold the key to a happier life, as individuals anticipate that more money will usher in positive changes and elevate their overall well-being.

Looking forward to a salary increment The yearning for a salary increment is akin to the nerves one experiences when asking someone to prom. While people often fantasise about receiving a raise, the act of requesting one remains a daunting task. Despite the anxiety surrounding the request, individuals persist in the belief that once obtained, the raise will be a catalyst for positive transformations, promising increased happiness and satisfaction. Contrary to the adage that “money can’t buy happiness,” various studies establish a connection between income and well-being. Research indicates that people’s happiness tends to increase with rising salaries, at least up to the threshold of half a million dollars. However, the impact of a salary increment on happiness is not as monumental as one might envision. Three facets of impact The magnitude of the effect hinges on three key factors. Firstly, the proportion of the increase matters, with incremental and modest raises being more common than substantial jumps. Secondly, as individuals ascend the income scale, it takes more money to generate the same level of contentment. Lastly, the impact of income on happiness is not solely about the absolute amount but is influenced by how one’s earnings compare to those of others, both within a workplace and a broader societal context. While a salary increment may momentarily boost happiness, it is only one facet of work life. The reality often falls short of expectations, prompting a closer examination of the relationship between income and well-being. Executives, for instance, are more likely to contemplate leaving their positions if their pay lags behind that of their peers. Peer pressure Living in areas where people earn higher incomes is also associated with reduced happiness. The pursuit of money and raises, it seems, has its limitations. The scientifically proven trick to happiness in the realm of income is not the amount earned but rather how individuals choose to use their money. Time over money emerges as the key, with a focus on the quality of life rather than a relentless pursuit of financial growth. Drawing parallels between personal income and national GDP, the analogy highlights that, just as GDP growth is essential for nations up to a certain point, a raise holds significance for individuals. However, growth for the sake of growth, akin to a raise pursued without purpose, does not necessarily translate to lasting happiness. As the pursuit of a salary increment continues to be a priority, the underlying message remains clear: it’s not just about the money but how individuals choose to navigate the delicate balance between income and happiness. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .