Happiness related to your wallet

Those earning under $35,000 are the only group of Australians that say their income is negatively affecting their personal wellbeing.

They say money doesn't buy you happiness, but it sure does help.

National Australia Bank's latest wellbeing index shows people earning under $35,000 are the only group of Australians who said their income isn't making them happy.

In general terms, the higher a person's income, the better their wellbeing score.

Speaking ahead of International Mental Health Day on Saturday, NAB MLC community foundation chair Lara Bourguignon said it is important to address the growing pay and happiness gap.

"Everyone else is feeling good, but the people that are under financial duress continue to feel worse," she said.

"We thought it was quite alarming that these financial pressures can have such negative impacts on low income earners."

Asking questions like "do you fee like your life is worthwhile?" and "did you feel happy yesterday?", the report indirectly tracked people's growing despair in the low income bracket.

Ms Bourguignon says pressures on low income earners that can lead to brash decisions like signing up to a high interest pay day loan, which can further feed their despair.

"In such a low interest rate environment, I suspect there have been people that have over-extended themselves and have realised now that all of those great deals are really putting them under duress," she said.

While wellbeing is higher for women than men, young women were found to have the lowest wellbeing of any demographic.

Improving the situation lies in education, Ms Bourguignon said.

"This starts really at a young age, building education and awareness around your finances and how to manage them effectively, how to live within your means, how to manage credit card debt."


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Source: AAP


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