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How much money do you need to be happy? Here’s what the research says

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Brad Elphinstone, Swinburne University of Technology

Over the next decade, Elon Musk could become the world’s first trillionaire. The Tesla board recently proposed a US$1 trillion (A$1.5 trillion) compensation plan, if Musk can meet a series of ambitious growth targets.

Australia’s corporate pay packets aren’t quite on that scale. Yet even here, on Friday it was reported departing Virgin chief executive Jayne Hrdlicka will collect nearly $50 million in shares and other cash benefits on her way out the door.

Research from the United States suggests people think the average CEO earns ten times more than the average worker – and would prefer it was closer to only five times more.

In fact, the real gap in the US over the past decade has been estimated to mean CEOs earn a staggering 265 to 300 times more than average US workers.

Australians think CEOs earn seven times more than the average worker and would prefer if it was only three times more.

But the real gap here is also much higher. A long-running study found CEOs of the top 100 Australian companies earned 55 times more last financial year than average workers.

So, how much money is enough?

People have asked this question for thousands of years. The ancient Greek philosopher Aristotle explained the idea of eudaimonia, or a roadmap of “living well”, saying it:

belongs more to those who have cultivated their character and mind to the uttermost, and kept acquisition of external goods within moderate limits, than it does to those who have managed to acquire more external goods than they can possibly use, and are lacking goods of the soul.

Aristotle’s philosophy doesn’t call on us to shun money or wealth entirely, but argues it shouldn’t become life’s sole focus.

Research over recent decades has come to different conclusions on how much money is needed to achieve peak wellbeing.

A US study in 2010 suggested wellbeing maxes out around US$75,000. This figure naturally needs to be increased today to account for inflation – which, if those research findings are still true today, would be closer to US$111,000 in today’s dollars. You’d also need to take into account the cost of living in your area.

Other findings suggest wellbeing may continually increase with growing wealth, but the increase in wellbeing from $1 million to $10 million is likely less than when someone moves from poverty to middle class.

A 2022 experiment studied 200 people from Brazil, Indonesia, Kenya, Australia, Canada, the United States and the United Kingdom who were randomly given US$10,000 (A$15,000 at today’s exchange rate).

It found people in lower income countries “exhibited happiness gains three times larger than those in higher-income countries”, including Australia. But that cash still provided detectable benefits for people with household incomes up to US$123,000 (roughly A$184,000 today).

Remarkably, the people in that experiment (explained from 4:42 minutes into the video below) gave away more than two-thirds of that money to family, friends, strangers and charities.

Valuing time and relationships

Decades of international research have consistently shown materialistic goals – acquiring wealth and possessions for reasons associated with image and status – undermine wellbeing.

This is because materialistic striving is often borne out of low self-esteem or tending to compare oneself negatively to others, and there is always someone else to compare yourself against.

People can get stuck on the “hedonic treadmill”, where they get used to their new level of wealth and the luxuries it provides and then need more to feel happy.

It’s also because the work needed to acquire that wealth can mean less time focusing on hobbies and with loved ones.

Harvard research tracking two generations of men and their children over their lives, going back to 1938, shows deep, meaningful relationships with others are key to mental and physical wellbeing.

American psychologist Abraham Maslow developed a “hierarchy” of people’s “needs” in 1943. This suggested “self-actualisation” – reaching your pinnacle of personal growth – starts by having enough money to cover the basics of food, shelter, and access to the opportunities needed to grow as a person.

In line with this, research has shown “time affluence” (maximising free time by paying people to do things you don’t want to) and “experiential buying” (for example, meals out with loved ones, going on holidays) can support wellbeing by helping people develop new skills, build relationships, and create lifelong memories.

It’s in most of our interests to close the wealth gap

Recent data shows economic inequality in Australia is increasing. This is particularly affecting young Australians, as housing becomes less affordable.

At a broader social level, research from the UK indicates that as inequality increases, social outcomes get worse. These include increased crime, drug and alcohol abuse, obesity as people struggle to afford nutritious food, and reductions in social trust.

What percentage of wealth do you think is owned by the richest 20% of Australians? And in your ideal Australia, how much wealth should the richest 20% own?

The most recent Bureau of Statistics data we have, from 2019-20, showed the richest 20% of Australians owned around 62% of our wealth.

As inequality gets worse, evidence suggests it will lead to social problems that threaten to undermine the wellbeing of the whole community.

The irony is those who pursue extreme wealth and benefit most from this inequality will not necessarily be happier or more fulfilled because of it.The Conversation

Brad Elphinstone, Lecturer in psychology, Swinburne University of Technology

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Money

Gold and silver prices drop after Gaza ceasefire

Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs

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Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs

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In Short:
– Gold prices fell over 2% to below $4,000 per ounce due to a stronger dollar and profit-taking.
– Silver eased to $48.93 per ounce, influenced by market activity and ongoing high demand despite supply issues.
Gold prices fell over 2% on Thursday, dropping below $4,000 per ounce. The decline followed a strong rise earlier in the year and was influenced by a stronger dollar and profit-taking after a ceasefire deal between Israel and Hamas.Spot gold decreased to $3,959.48 per ounce, while U.S. gold futures for December delivery settled at $3,972.6.

Silver also experienced a slight decline, easing from its record high to $48.93 per ounce. The dollar index increased, making gold more expensive for overseas buyers.

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Traders noted increased activity in the market as profit-taking coincided with reduced tensions in a historically volatile region.

An independent metals trader stated that while gold and silver may need to consolidate further, the underlying demand drivers remain intact.

Market Overview

Gold surpassed $4,000 per ounce on Wednesday, reaching $4,059.05, boosted by geopolitical tensions and strong demand from central banks. The asset has gained about 52% this year, reflecting a significant increase due to various economic factors. The U.S. central bank’s decision to cut rates in September also contributed to the rally, with expectations for future cuts in the coming months.

Silver’s price increase of 69% this year is tied closely to similar economic trends impacting gold. Notably, liquidity issues in the silver market are being exacerbated by strong demand and tight supply conditions. Other precious metals, such as platinum and palladium, also saw declines during this period.

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Money

North Korean hackers steal $2 billion in crypto

North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history

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North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history

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In Short:
– North Korean hackers stole over $2 billion in cryptocurrency in 2025, nearly tripling last year’s total.
– A shift to social engineering tactics has led to increased targeting of high-net-worth individuals for cyber attacks.
North Korean hackers have reportedly stolen over $2 billion in cryptocurrency assets in 2025, setting a record with three months still left in the year.
Data from blockchain analytics firm Elliptic indicates that this amount nearly triples the total stolen last year, accounting for approximately 13% of North Korea’s estimated GDP and raising the regime’s total crypto theft to over $6 billion since 2017.Banner

A significant portion of the 2025 theft is attributed to the February hack of cryptocurrency exchange Bybit, which amounted to $1.46 billion.

The FBI has linked this breach to state-sponsored North Korean hackers, who exploited weaknesses in Bybit’s wallet management system. More than 30 additional cyber attacks have also been associated with North Korea this year, including notable breaches at LND.fi and WOO X.

Shift In Tactics

A shift in methodology among North Korean hackers has been observed, as they now focus on social engineering rather than technical exploits. According to Elliptic, the primary vulnerability lies with individuals rather than technology.

High-net-worth individuals and corporate executives are increasingly targeted due to their relatively weaker security measures.

The hackers utilise deceptive tactics, including phishing schemes and fake job offers, to access private cryptocurrency wallets. Intelligence reports suggest that the stolen funds are used to finance North Korea’s nuclear programmes.

The regime has also improved its money laundering techniques by employing various cryptocurrencies and mixing methods to obscure fund origins. Blockchain analysts are actively tracking these stolen assets, with notable progress achieved in identifying recoverable funds.


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Money

Gold prices soar to $4,000 an ounce milestone

Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

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Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

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In Short:
– Gold prices reached $4,000 per ounce due to a declining dollar and economic uncertainties.
– Investors are advised to be cautious as prices near $4,000 may lead to potential market corrections.
Gold prices reached $4,000 per ounce for the first time on Tuesday as investors sought refuge from a declining dollar, geopolitical tensions, economic insecurity, and persistent inflation.Gold futures closed at a record $4,004.40, peaking at $4,014.60 during the day.

Prices have risen about 50% this year, influenced by a 10% drop in the U.S. dollar index and shifts in trade policies under President Donald Trump.

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Central banks and retail investors are increasingly purchasing gold.

Countries like China are moving away from U.S. Treasurys after significant sanctions imposed on Russia due to the Ukraine invasion in 2022. Retail investors desire protection from inflation.

The surge in gold prices followed the Federal Reserve’s interest rate cut in September, making short-term debt instruments less appealing. The expectation is for two further rate reductions by year-end, with the Fed’s next meeting scheduled for October 29.

Market Caution

Bank of America has recommended a cautious approach towards gold as prices near $4,000, warning of potential “uptrend exhaustion” that could result in a market correction in the fourth quarter.

Investors should remain vigilant regarding gold investments, as potential price consolidations may occur.


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