Happiness is tied to whether you make more money relative to people you consider your peers, not your absolute earnings.Researchers analyzed the results of the British Household Panel Survey between 1997 and 2004, in which 80,000 respondents rated the overall happiness of their lives. After determining the amount of money each person had, the researchers correlated happiness levels with various indicators -- like gender, education level, geographical region and age.
After doing so, they were able to determine that where your income ranks among your peers -- not its absolute number -- is what drives life satisfaction. This helps explain why, for example, when countries get richer, overall happiness doesn't seem to improve.
Finally, a really good reason to live in a really bad neighborhood -- besides easy access to liquor stores.
