What's the price of happiness for a household in Belgium? Apparently, just €1 million in capital and a monthly net income of €5,500.
A survey of almost 1,600 Belgians by online financial advisor Easyvest has calculated the financial threshold for happiness across the country.
Easyvest's money and happiness barometer is inspired by a famous study by Nobel Prize winner Daniel Kahneman. He calculated that beyond a net annual income of €85,000, the individual happiness of Americans stops increasing.
Belgians surveyed by Easyvest put the price of happiness at €1 million in terms of capital (including property ownership), and €5,500 per month in net income.
This perceived threshold for happiness is higher than the financial reality for most respondents, as their median household income was €4,460 per month, and the average value of capital owned was €440,600.
Mont des Arts in Brussels. Credit: Nicolas Maeterlinck
Does money buy happiness?
Easyvest observed that "well-being does seem to increase with income level". Although 60% of respondents said that money does not buy happiness, the proportion of "happy" and "very happy" respondents increased in higher income categories. Likewise, the proportion of "unhappy" and "very unhappy" respondents was greater in lower income categories.
The median net wealth of Belgian households (€440,600) is less than half the supposed €1 million threshold for happiness. Easyvest CEO Matthieu Remy said that therefore bridging the gap through savings is "within the average household's reach".
"Let's take a 45-year-old couple who earn €4,500 net per month and already have assets of €440,000, mainly invested in real estate. To reach €1 million of assets at retirement, taking into account inflation at 2%, they will have to invest €1,200 per month for 20 years," Remy said.
"This is a little less than 30% of their monthly income: it's not nothing, but it's an acceptable proportion, provided that this amount is invested with a 4% return. If these savings are left in a savings account at 2%, they will have to save €2,400 per month, which is much more unlikely," he added.
"Ultimately, our study carries a positive message: financial happiness is not a pipe dream. It is a project that, on average, can be carried out successfully."
Regional, linguistic and gender differences
Looking at different regions, the average net income needed to achieve happiness was higher in Brussels (€6,000 per month) than in Flanders (€5,500) and Wallonia (€5,000).
The price of happiness was also higher for Dutch speakers (€6,000 per month) than for French speakers (€5,000 per month).
The survey also found that across all income categories, women report being less happy than men, and have a lower satisfaction with the financial balance between themselves and their partner.
The price of median happiness was lower for women, particularly in relation to capital (€450,000 compared to the overall figure of €1,000,000). The survey found that it is still men who contribute the majority of household incomes. The higher the total household income, the greater the proportion contributed by male earners.
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When it comes to defining financial happiness, not depending on anyone financially (33%) and being able to cope with any unexpected expense (32%) come out on top. Following this, people prioritise taking care of loved ones financially (21%) and living impulsively and spontaneously (14%).
The national survey 'Does money make Belgians happy?' was conducted by Easyvest between April and June 2024. Nearly 1,600 responses were collected, distributed in representative proportions between men and women and French and Dutch speakers.
