Are you wondering if you had more money if you would be happier? The truth is that it depends. If you’re a person that is fulfilled in the process of making more money then yes you’re happier.
On the other hand, if you’re not fulfilled even with all the money in the world or billions of dollars and no fulfillment, it is unlikely you will be happier.
In fact, things may even get worst with having more cash. In this article, I will discuss the topic “Does money make you happy?” a question we have heard all through out our lives from childhood to young adults to middle aged and to old age. Sections will include
-Overview of Money & its Relation to Happiness
-Money & What can be Acquired with it?
-Case Studies & Data
Overview of Money & its Relation to Happiness
Many people really don’t understand what money is.
Many think money and currency are the same but they are not. Money is a medium of exchange for goods and services, a store of value, a unit of account, and a payment standard.
Gold for example is money because it is accepted by most and it has intrinsic value. Currency are promissory notes or coins that are presented in the form of money.
The USD or United States Dollar is currency not money.
Here is a small history lesson, The USD use to be money because it was backed by gold. This was called the gold standard. President Nixon took the USD off the gold standard in 1971 on August 15.
Now the USD is being devalued and not backed by gold. The USD become a currency and more specifically a fiat currency.
Moving forward when I mention money in this article, I am referring to which a person has notes or coins in which they can use to buy goods and services.
Why was all of this necessary as it relates to “does money make you happy?”.
First, I wanted to clearly define what money was so as we dive into how it impacts people’s happiness, we know the distinction between money and currency.
Money is related to happiness in so much that it can provide you with items that can enhance your way of living, which as a result can make you happy.
Some people have suggested the more money you have the more items you can get for yourself and your family therefore this sustains their family and well being which can improve a person’s happiness.
However, these materialistic items does not guarantee happiness if a person does not fell fulfilled on the inside and may lead to bad behavioral or actions to fill the void in them.
Ultimately, the answer of “Does Money Make You Happy?” depends on the individual and if they are able to be fulfilled because we see wealthy people who are miserable and even kill themselves while there are poor people who are joyful and happy.
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Money & What can be Acquired with it?
I touched on this very briefly in the previous section.
What was said was that “Money is related to happiness in so much that it can provide you with items that can enhance your way of living, which as a result can make you happy”.
Lets look at an example from different angles. Lets take a man, name John, who is in his 30s with two kids and a wife.
John gets a promotion and a big bonus because he is with a rapidly growing company, so his salary has now doubled.
His fulfillment in his life is providing for his family. Before the bonus and promotion he provided for his family at the basic level but he didn’t have enough money to go beyond that.
With this new promotion John is able to start college funds for his kids, start buying investment properties and place within a family portfolio and take his family on extravagant vacations around the world.
John is more happy because the money allowed him to do more for his family since this is his source of fulfillment through taking care of his family.
Now lets use this same example but now John, even with caring for his family at a high level, doesn’t feel fulfilled because he does not know his purpose in life.
This need if not met regardless of how much more money he has have will not make him happy.
The takeaway is that having more money and its impact on a person’s happiness is determined by whether they feel fulfilled in life or at least headed in the right direction.
It is highly recommended to seek out wealth, prosperity, happiness, and fulfillment all at once in life and live a life of purpose.
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Case Studies & Data
“A 2010 study out of Princeton University found that there’s a correlation between happiness and wealth, to a point of about $75,000 per year.
When people make more than $75,000 a year, their happiness doesn’t increase, but the lower their income is the worse they feel, the study found”.
I can sometimes relate to this. When I am making good money it puts me closer to financial freedom but when it declines I do feel bad. A different study involves Harvard.
“Harvard Business School researchers studied 4,000 millionaires. They found that if you want you and your heirs to be happier, you should give your money away and let them make it on their own.
Ultimately it is the millionaires choice but whatever satisfies them”. There are stories of families inheriting millions from their relatives and squandered the money and legacy they built.
Personally, I would leave enough for my family to be financially independent but not a super excess amount of cash that far exceed the normal financial freedom.
The rest is likely to go to charities. Another study is using data from different citizens across different income levels.
“One study that used data from the General Social Survey, one of the longest-running nationally representative surveys of U.S. adults, with 44,198 participants between 1972 and 2016 found having more money has become increasingly associated with greater happiness.
The Expanding Class Divide in Happiness in the United States, 1972—2016, published last week in the journal Emotion, found that among people age 30 and older, the correlation between income and happiness has steadily risen over the years”.
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Conclusion
More money doesn’t guarantee your happiness but it can significantly increase the chances of you being happier.
As you pursue more money also decide to live a fulfilling life and this will help you be happier in the process.