Daniel Kahneman and Angus Deaton examine whether money buys happiness, focusing on two aspects of well-being: emotional well-being and life evaluation. Using data from the Gallup-Healthways Well-Being Index, they find that income is more closely related to life evaluation than to emotional well-being. Life evaluation increases steadily with income, but emotional well-being plateaus at an annual income of about $75,000. Low income is associated with both low life evaluation and low emotional well-being. While higher income improves life satisfaction, it does not significantly enhance emotional happiness. Emotional well-being is more influenced by factors such as health, loneliness, and smoking than by income. The study also finds that the effects of income on emotional well-being saturate at a certain level, suggesting that beyond $75,000, additional income does not significantly improve emotional happiness. However, higher income continues to improve life evaluation. The research highlights the distinction between life evaluation and emotional well-being, emphasizing that while income affects life satisfaction, it does not necessarily lead to greater happiness. The findings suggest that policies aimed at improving well-being should consider both aspects of well-being.Daniel Kahneman and Angus Deaton examine whether money buys happiness, focusing on two aspects of well-being: emotional well-being and life evaluation. Using data from the Gallup-Healthways Well-Being Index, they find that income is more closely related to life evaluation than to emotional well-being. Life evaluation increases steadily with income, but emotional well-being plateaus at an annual income of about $75,000. Low income is associated with both low life evaluation and low emotional well-being. While higher income improves life satisfaction, it does not significantly enhance emotional happiness. Emotional well-being is more influenced by factors such as health, loneliness, and smoking than by income. The study also finds that the effects of income on emotional well-being saturate at a certain level, suggesting that beyond $75,000, additional income does not significantly improve emotional happiness. However, higher income continues to improve life evaluation. The research highlights the distinction between life evaluation and emotional well-being, emphasizing that while income affects life satisfaction, it does not necessarily lead to greater happiness. The findings suggest that policies aimed at improving well-being should consider both aspects of well-being.