Economists now agree: 'You can't buy happiness'

In other words, more money will make you happier, but only as long as those around you don't also earn more. Also, you get used to earning more money, so after a while it doesn't cheer you up as much as it did at first.

Large homes and luxury goods don't do much for us in the long run, but there are other spheres of life that give a lasting contribution to happiness.

"A reallocation of time in favor of family life and health would, on average, increase individual happiness," Easterlin wrote.

Poor countries that become richer can gain substantially in happiness, Diener wrote, because the growing economy helps satisfy basic human needs, such as food, shelter and health care. But once average annual income increases above about $10,000, happiness rises only very slowly, even if the economy booms.

via Seattle PI