Does Money Buy Happiness? Disentangling the Association Between Income, Happiness and Stress

Although there is evidence of an inverse relationship between stress and happiness, less is known about the interrelationship between income, happiness and stress. The purpose of this research brief was to investigate whether and how income and stress shape the distribution of happiness. A population-based cross-sectional study was conducted in the city of Rio Grande, Southern Brazil, with 1,168 individuals aged 18 years or older. The data were collected in 2016 and analyzed in 2019. Wealthiest people tended to be happier and less stressed. Less-stressed people had higher levels of happiness, which remain stable regardless of their income. Most-stressed individuals had lower prevalence of happiness throughout all income subgroups. Happiness levels among both rich and poor respondents decreased as stress levels increased. Nonetheless, this reduction was more pronounced among the poorest respondents. Concluding, stress plays an important role in the relationship between income and happiness. Although there is some evidence that money can exert influence on happiness, it seems that this association is highly dependent of individuals' stress levels.