How much you need to earn to be happy

Whilst it may be true that money can’t buy happiness, it can buy a more comfortable lifestyle.

But how much do you think you need to earn to feel content?

New research has found that a single person needs to earn £17,900 a year to reach what is called the Minimum Income Standard (MIS).

This is based on what members of the public think people need to achieve a decent living standard.

The research was carried out by the Centre for Research in Social Policy at Loughborough University and has resulted in the latest update to the MIS.

It acts as a barometer of living standards for households on low incomes and is updated in response to economic and policy changes, the Joseph Rowntree Foundation (JRF) reports.

Whilst a single person needs to earn £17,900, a dual-earner couple with two children needs to make £20,400 a year each to reach MIS, and a single parent with a pre-school child must earn £25,900.

Of course, living costs vary across the country, but many people are struggling to meet MIS.

“It’s very difficult,” says working mum Rebecca Bromley from Leeds, who has a nine-year-old son.

“Day-to-day expenses are just about manageable but when other things pop up - like school trips or when they need new uniform - it’s always ‘where am I going to get this money from?’ I can’t remember the last time I treated myself to anything, new shoes, new clothes, I just don’t get them.

“When birthdays and Christmases come up, something which should be enjoyable is stressful because of the worry about finding the money. My wage only just about covers all my bills. By the end of the month, I’m lucky if I even have £50 left over.”

Earlier this year, the National Living Wage rose from £7.20 to £7.50 an hour and tax cuts have also been implemented.

But these improvements haven’t been enough to counteract increasing living costs, the freeze on tax credits and benefits, and reduced in-work benefits which effectively negate the wage increases.

Campbell Robb, chief executive of the JRF, said: “Working families are facing bigger holes in their budgets worth hundreds of pounds, despite a higher National Living Wage and tax cuts. It means millions of families are facing a struggle to make ends meet as the cost of getting by in modern Britain rises ever higher.

“Struggling families tell us as well as juggling the bills, it’s things like after school clubs and swimming lessons that must be sacrificed to cover the essentials.”