NZ’s price of happiness

NZ is the fifth most expensive place to buy happiness worldwide, according to this study

It’s usually said that money can’t buy happiness, but apparently a salary of US$128,844 (NZ$182,539) will do the trick for Kiwi’s.

Money and finance website Expensivity has calculated the salary level in each country that would prevent unhappiness.

The global analysis was based on the “happiness premium” established by researchers at Purdue University, in the United States. In that study, researchers looked at data from 1.7 million people and cross-referenced their earnings and life satisfaction. They found that more money boosted happiness – but only to a point. Beyond that, further increases in income could lead to more unhappiness.

Expensivity converted Purdue’s “happiness premium”, using purchasing power ratios sourced from the World Bank, then added local costs of living to calculate the different prices of happiness.

Where is more expensive than NZ?

It’s no secret that NZ is an expensive place to live. Rising property prices, taxes, and costs of consumer goods are hitting Kiwi families in the pocket. This is also a worldwide issue.

Learn more:

• NZ housing is the most unaffordable worldwide
• New higher tax rate for top earners
• NZ house price growth vs the world

According to Expensivity, the following are the five most expensive countries to live by happiness:

1. Bermuda
2. Australia
3. Israel
4. Switzerland
5. New Zealand

Hard work pays

In the interests of providing some balance, another study found the tipping point of happiness was the much larger figure of US$500,000 (NZ$708,372)!

We all also know plenty of people who don’t earn anywhere near these sums, yet are perfectly happy and healthy.

The bottom line - NZ is an expensive place to buy happiness

According to data from Inland Revenue, about 2.4 percent of working New Zealanders earn more than NZ$175,000 each year.

The average 40 hour week income in New Zealand is NZ$67,028 annually, according to Stats NZ.

Perhaps you’d like to boost your earning power (and maybe happiness!) by one of the methods below:

• How to make six figures
• The proven way to become wealthy
• 21 high income skills
• How rich are you?
• Increase your income with these 12 side hustle ideas