Research Has Shown That Having A Close Friend Is Worth $150,000, And People Derive More Life Satisfaction From Close Friendships Than Both High Incomes And Marriage

Friendships don’t just make life more enjoyable; studies have shown that they also improve our physical well-being by reducing the risk of significant health problems such as high blood pressure and depression.

But, if you had to put a dollar amount on one of your close friendships, how much would you estimate it’s worth?

In 2008, The Journal of Socio-Economics published a study aiming to quantify the worth of social connections. This study discovered that the happiness and life satisfaction derived from having a close friend is comparable to an additional £85,000 in monetary terms.

When adjusted for inflation, this figure translates to approximately £112,000, or $150,000 in today’s currency.

According to Nick Powdthavee, the study’s author, while the financial equivalent might vary with time, the core message remains consistent. Individuals with a robust social network tend to experience greater overall life satisfaction compared to those lacking one.

For the study, which spanned 18 years and involved over 10,000 participants, researchers utilized data from the British Household Panel Survey to explore what contributes more to personal happiness: money or friendship. The results clearly favored friendship as the dominant factor.

“Income only plays a small part in influencing our well-being. Other possessions in life, such as social relationships, matter a lot more to happiness than what average level of income can normally buy in the long run,” the study’s authors wrote.

The study participants were asked to rate their life satisfaction on a scale from one to seven, where one represented very dissatisfied, and seven meant very satisfied with life. Those with a strong social network scored two points higher in satisfaction compared to individuals without such networks.

Additionally, the study examined the role of friendship compared to marriage in contributing to life satisfaction. Once again, friendship emerged as the more significant factor.

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