Abstract:
There are numerous psychologists found that there is a small income effects on individual
happiness. It has always been a challenge to prove that happiness is positively correlated with
money, as it is widely believed and argued that “money can‟t buy happiness”. Further previous
scholars found out that more money is positively associated with greater happiness. Hence the
research is a psychological evaluation attempts to disentangle the positive relationship between an
individual‟s monthly income and happiness. A quantitative study has been undertaken using
convenience sampling and data were collected from 100 working individuals between the age
group of 25 and 35 providing Oxford Happiness Questionnaire to calculate the happiness level.
Further descriptive, correlation analysis conducted to generate results and to identify the impact of
income in happiness of an individual. The received responses were numerically valued and the
happiness score was found to be increasing with the higher amount of monthly income. The results
obtained proved that there is a significant positive relationship between monthly income and
happiness of an individual. However, it is not a strong relationship. Therefore, it is concluded that
people who earn more are slightly happier than the people who earn less.
Keywords: Income effects; Individual happiness; Monthly income
