Understanding the income threshold beyond which happiness diminishes

Adopted from the following great insight shared by Malcolm Gladwell from the book David and Goliath

The scholars who research happiness suggest that more money stops making people happier at a family income of around seventy-five thousand dollars a year. After that, what economists call “diminishing marginal returns” sets in. If your family makes seventy-five thousand and your neighbor makes a hundred thousand, that extra twenty-five thousand a year means that your neighbor can drive a nicer car and go out to eat slightly more often. But it doesn’t make your neighbor happier than you, or better equipped to do the thousands of small and large things”