One of the most infamous findings in happiness research is that money doesn’t buy a lot of happiness – or at least not as much as we think it should. According to the economist Richard Easterlin, part of the reason for this is that we care a great deal more about what other people earn than what we do ourselves.

For those whose most basic needs are already met, money buys additional happiness only if it can lead to higher status in society, which is hard when everyone else is also getting richer over time. Since people’s comparison group varies from place to place, those living in more affluent areas of London, for example, would probably need to earn at least ￡200k a year to ensure that they are staying well ahead of most other Londoners – and even that might not be enough.

Moreover, according to the Princeton University psychologist Daniel Kahneman, the weak relationship between happiness and income can also be explained, in part, by the evidence that richer people tend to spend more time engaging in activities associated with no greater happiness, on average, but with slightly higher tension and stress – such as work, childcare and shopping. By contrast, people with lower incomes tend to spend more time engaging in happiness-rich experiences such as socialising with friends and other passive leisure activities such as resting and watching TV.