Although most of us pretend not to believe the proverb that “money can’t buy happiness,” everyone is aware of it. It is obvious that wealth does not ensure happiness; many people are extremely wealthy but are wholly unhappy.
Happiness is influenced by money. Ask anyone who lacks it. For instance, a larger salary can enable us to live in houses in safer areas, receive better nutrition and medical care, have fulfilling jobs, and have more free time. This only functions to a certain extent, though. The positive effects of money, like purchasing your dream home, are frequently counterbalanced by the negative effects, like working for long hours or in more stressful jobs to maintain that income, once our basic needs for food, safety, healthcare, and housing are satisfied, and our income reaches a particular level.
Stress levels might rise as income does as well. Your high-paying work may not provide you with much satisfaction, despite your big salary. However, it can be used to purchase a sizable suburban home. Unfortunately, that also entails a lengthy drive to and from work. Research after research backs up what you already know. Even if you love to do your job, the daily torture that is your commute can wear you out. You can adapt to almost anything, but whether it’s your first or last day on the job, a long drive or an overcrowded subway vehicle will make you unhappy.
Can Money Buy Happiness?
Many communities still maintain their old ways of life independent of market-based exchange. Contrary to popular opinion, they still live happy lives. They have similar levels of mental health as people in civilizations where money is valued highly. This brings up the age-old debate over whether or not money can buy happiness.
More recently, it has been discovered that happier people tend to be wealthier. On the other side, financial insecurity is linked to stress-related health issues like high blood pressure and heart disease.
Money is not the secret to happiness because the fact is one can never have enough of it. The more riches a person has accumulated, the more they are motivated to make money. Because money is less successful at delivering comfort and pleasure the more one has, this happens. Research suggests that the boost in enjoyment linked to each dollar reduces once people’s basic requirements have been satisfied.
We can wonder if money can buy happiness when we consider the luxuries that money can buy, such as pricy dinners and lavish vacations. Cash is essential in another crucial manner. According to recent studies, it helps people minimize many of the daily difficulties that elevate stress.
According to Harvard Professor Jon Jachimowicz, money can bring comfort and control, enabling us to buy our way out of unforeseen hiccups in the road, whether it’s a minor inconvenience, like avoiding a thunderstorm by calling up an Uber or taxi, or a more significant worry, like managing an unexpected hospital bill.
Lower stress is associated with higher income.
Five hundred twenty-two participants in one study kept diaries for 30 days, recording daily occurrences and their feelings in response to them. Less than $15,000 to $160,000 or more or more was the income range of participants in the prior year. They discovered:
- Money reduces extreme stress: There was no noticeable difference in the frequency of stressful events experienced by the individuals. Regardless of income, they all reported experiencing roughly the same number of daily problems. But the severity of the negative effects on those with greater earnings was smaller.
- Having more money gives you more control: People who reported having more control over stressful occurrences reported feeling less stressed. People with large earnings felt more empowered to handle any problems that might emerge.
- More money means more happiness in life: Higher-income people were generally happier with their lives. Jachimowicz says that while wealth does not prevent problems from existing, it does make it possible to address issues more rapidly.
Materialism depresses people:
Humans are not always aware of what makes us joyful! We believe that money will make us happy because our culture places such a high value on it, so we pay no attention to what is happening actually. Consider these facts:
01. The joy of acquiring things is temporary; it wears off. For instance, we might be overjoyed to get a larger car, but with time, we come to take it for granted. Additionally, we are still responsible for making monthly automobile payments, which may limit our alternatives for enjoyable activities like trips and dining out.
02. We raise our standards of expectation. Our increased expectations consume practically all of the additional income we have as we think we need more luxury items. To put it another way, we nearly exclusively spend our raises on more costly versions of the goods we already own.
03. Our desires might be insatiable; as we acquire more, our desires grow. This may result in significant debt and all other associated difficulties.
04. More materialism is linked to several negative outcomes, including decreased self-worth, increased narcissism, decreased empathy, and more tense personal relationships.
Money is not happiness itself but a means to the things we value.
It turns out that the biggest distinction between lottery winners and losers is that winners of a lottery have more free time. This is the thing that truly gets me jealous, and I would argue that this is the key factor contributing to lottery winners’ higher levels of life satisfaction.
Simply put, why wouldn’t we be happier if we didn’t constantly feel under pressure to earn income but instead had the financial stability to spend time doing what we value and enjoy?
The news is good. It serves as a reminder that happiness is not something that can be truly purchased with money. It can afford you some time and comfort. With it, you can enjoy stability, pleasure, and the capacity to be kind to your loved ones. It creates space for other crucial aspects of life.
When doesn’t money buy happiness?
The tendency for “lifestyle creep,” as Bryan-Podvin terms it, is one reason why having more money doesn’t always translate into being happier. This means that your spending often increases as your income increases.
For instance, you can find yourself shelling out cash for things like a club membership card or dinners at costlier places. If this is the case, despite earning a good wage, you might not feel as though you have enough money.
Money has an impact on happiness as well as the amount of effort involved in earning it. “You might be making $300,000, which in principle sounds fantastic, but what’s the point if you’re working 80 hours a week and can’t appreciate the money you’re making?” says Bryan-Podvin.
How much money makes us happy?
Money Can’t Buy happiness, as you are well aware. That’s not accurate, and it turns out. Depending on your level of income and how you choose to spend it, money can help you achieve a particular level of life happiness.
According to research, mental health increases up to a certain point together with income. Up to a yearly income of $75,000 (about $90,000 now), participants in a 2010 study that included surveys of more than 450,000 Americans reported improved emotional well-being. However, there was no further growth after the first $75,000 ($90,000 now) in yearly revenue.
The study found that while happiness rises along with yearly household earnings up to roughly $75,000, after that point, earning more money had little impact on contentment in daily life.
However, it doesn’t follow that you should stop attempting to acquire that promotion. Making more money won’t improve your mental condition on any particular day. But persons with family incomes over $75,000 were more likely to report overall life satisfaction.
Comparing those who made $120,000 to those who made less, those who made $120,000 reported being even happier with their lives and having higher assessments of their overall quality of life.
Conclusion:
Though it’s improbable that you can buy happiness, you may get some of it with the aid of money. Beyond that, there are additional non-financial ways to discover happiness. Such as by spending time with loved ones or focusing on your achievements. Being wealthy is not the only path to happiness. Even if you don’t have a lot of zeros in your bank account, you can still earn things like health, community, compassion, pride, love, connectedness, and so much more. The original definition of “wealth” is related to a person’s overall well-being in life. So we all have the ability to be wealthy—in body, mind, and soul.
Different people have different needs for money to be happy. The amount of money needed to meet your fundamental necessities and the things that make you happy personally may determine how happy you are. Ultimately, depending on how you use it, money has the potential to boost life satisfaction. According to Bryan-Podvin, spending money on activities or possessions that reflect your values can make you happier.