Wealth is in the eye of the beholder

Annual income has long been used as a measure of success in the world and the assumption is made that happiness or well being is directly and proportionally linked to wealth. However studies indicate the average income in a nation makes little difference to the average self-reported happiness, once the annual income goes beyond $15,000 a year(most of the world's nations have less than this).
Happiness economics is a new branch of economic analysis that starts from the argument that income is a bad approximation for happiness. Based on modern happiness research, he cites three factors that economists fail to take into consideration:
1) Social comparisons: In contrast to what traditional economics predicts, happiness is derived from relative income as well as from absolute income. That is, if everyone gains purchasing power, some may still turn out unhappier if their position compared to others is worse. This effect may not turn economic growth into a zero sum game entirely, but it will likely diminish the benefits people draw from their hard work. In an economy where not only companies, but individuals are constantly forced to compete with each other, life and work are experienced as a rat race.
2) Adaptation: As people get used to higher income levels, their idea of a sufficient income grows with their income. If they fail to anticipate that effect, they will invest more time for work than is good for their happiness.
3) Changing Tastes: Economists assume that individual preferences are constant, when in fact such preferences are not fixed but increasingly mutable, shifting constantly according to the latest trends and cultural norms.
In turn, the relative values of one's accumulated possessions are subject to depreciation, ultimately having a negative effect on happiness.
Success and how people define and pursue it can destroy personal health, ruin marriages and create feelings of loneliness and isolation. Remind yourself that money does not equal happiness.

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