A study by an Ivy League researcher reveals that having more money can increase happiness, even among the already wealthy.

A study by Matthew Killingsworth, a research fellow at the University of Pennsylvania's Wharton School, confirms that wealthier people tend to be happier. His research shows that the relationship between income and happiness is consistent across a wide range of incomes.

"According to Killingsworth, the relationship's shape is highly organized, with no particular place where money loses significance."

Killingsworth's new research on the relationship between incomes and happiness confirms the positive correlation between money and life satisfaction, and reveals that the psychological effect of more money is relatively consistent across income groups.

If both individuals receive a 20% raise, their relative increase in happiness is likely to be approximately the same, regardless of their initial salaries.

The lower-earner may experience a greater material impact from the raise, as they may go from living paycheck to paycheck to being able to save each month, while the higher-earner may only elevate their existing experiences. However, Killingsworth states that in terms of quantifying their joy, the raise has roughly the same effect on both groups.

In addition to individual factors, your overall wellbeing may also be influenced by a variety of other factors.

According to Killingsworth, happiness is determined by multiple factors, and no single factor has a greater impact than others.

Everyone needs a 'happiness portfolio'

These findings may make it tempting to chase a bigger salary.

According to Killingsworth, when individuals earn more money, they experience a greater sense of control over their lives, which translates to having more freedom to pursue their desires.

Earning extra cash may seem like a good idea, but it could actually harm your ability to achieve your desired lifestyle. The key is not in what you purchase or how much you spend, but in being able to live the life you truly want.

If earning more money requires sacrificing time with loved ones or pursuing hobbies, it's likely that the additional income won't bring happiness.

"According to Killingsworth, happiness portfolios are necessary because happiness is influenced by a variety of factors, including money, which may be more important than previously believed, but is just one aspect of many that contribute to happiness."

Your happiness portfolio can encompass various elements, including your home, relationships, and career.

How can you maximize your earnings while doing something you enjoy, as suggested by Killingsworth?

If your career provides opportunities for advancement, it may be worth considering working additional hours to eventually increase your income and potentially enhance your life satisfaction.

If you're only pursuing a career for its high income potential and aren't satisfied with it, the salary alone may not bring you the happiness you desire.

According to Killingsworth, it is possible to live a happy life by earning what you can and finding happiness in other areas of life.

Earn more money at work by taking CNBC's new online course on negotiating a higher salary. Expert instructors will teach you the necessary skills to increase your paycheck, including how to prepare, build confidence, communicate effectively, and craft a counteroffer. Pre-register now and use coupon code EARLYBIRD for a 50% discount through Nov. 26, 2024.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.