can money buy happiness essay points

Can Money Really Buy Happiness?

Money and happiness are related—but not in the way you think..

Updated November 10, 2023 | Reviewed by Chloe Williams

• More money is linked to increased happiness, some research shows.
• People who won the lottery have greater life satisfaction, even years later.
• Wealth is not associated with happiness globally; non-material things are more likely to predict wellbeing.
• Money, in and of itself, cannot buy happiness, but it can provide a means to the things we value in life.

Money is a big part of our lives, our identities, and perhaps our well-being. Sometimes, it can feel like your happiness hinges on how much cash is in your bank account. Have you ever thought to yourself, “If only I could increase my salary by 12 percent, I’d feel better”? How about, “I wish I had an inheritance. How easier life would be!” I don’t blame you — I’ve had the same thoughts many times.

But what does psychological research say about the age-old question: Can money really buy happiness? Let’s take a brutally honest exploration of how money and happiness are (and aren’t) related. (Spoiler alert: I’ve got bad news, good news, and lots of caveats.)

Higher earners are generally happier

Over 10 years ago, a study based on Gallup Poll data on 1,000 people made a big headline in the news. It found that people with higher incomes report being happier... but only up to an annual income of $75,000 (equivalent to about $90,000 today). After this point, a high emotional well-being wasn’t directly correlated to more money. This seemed to show that once a persons’ basic (and some “advanced”) needs are comfortably met, more money isn’t necessary for well-being.

But a new 2021 study of over one million participants found that there’s no such thing as an inflection point where more money doesn’t equal more happiness, at least not up to an annual salary of $500,000. In this study, participants’ well-being was measured in more detail. Instead of being asked to remember how well they felt in the past week, month, or year, they were asked how they felt right now in the moment. And based on this real-time assessment, very high earners were feeling great.

Similarly, a Swedish study on lottery winners found that even after years, people who won the lottery had greater life satisfaction, mental health, and were more prepared to face misfortune like divorce , illness, and being alone than regular folks who didn’t win the lottery. It’s almost as if having a pile of money made those things less difficult to cope with for the winners.

Evaluative vs. experienced well-being

At this point, it's important to suss out what researchers actually mean by "happiness." There are two major types of well-being psychologists measure: evaluative and experienced. Evaluative well-being refers to your answer to, “How do you think your life is going?” It’s what you think about your life. Experienced well-being, however, is your answer to, “What emotions are you feeling from day to day, and in what proportions?” It is your actual experience of positive and negative emotions.

In both of these studies — the one that found the happiness curve to flatten after $75,000 and the one that didn't — the researchers were focusing on experienced well-being. That means there's a disagreement in the research about whether day-to-day experiences of positive emotions really increase with higher and higher incomes, without limit. Which study is more accurate? Well, the 2021 study surveyed many more people, so it has the advantage of being more representative. However, there is a big caveat...

Material wealth is not associated with happiness everywhere in the world

If you’re not a very high earner, you may be feeling a bit irritated right now. How unfair that the rest of us can’t even comfort ourselves with the idea that millionaires must be sad in their giant mansions!

But not so fast.

Yes, in the large million-person study, experienced well-being (aka, happiness) did continually increase with higher income. But this study only included people in the United States. It wouldn't be a stretch to say that our culture is quite materialistic, more so than other countries, and income level plays a huge role in our lifestyle.

Another study of Mayan people in a poor, rural region of Yucatan, Mexico, did not find the level of wealth to be related to happiness, which the participants had high levels of overall. Separately, a Gallup World Poll study of people from many countries and cultures also found that, although higher income was associated with higher life evaluation, it was non-material things that predicted experienced well-being (e.g., learning, autonomy, respect, social support).

Earned wealth generates more happiness than inherited wealth

More good news: For those of us with really big dreams of “making it” and striking it rich through talent and hard work, know that the actual process of reaching your dream will not only bring you cash but also happiness. A study of ultra-rich millionaires (net worth of at least $8,000,000) found that those who earned their wealth through work and effort got more of a happiness boost from their money than those who inherited it. So keep dreaming big and reaching for your entrepreneurial goals … as long as you’re not sacrificing your actual well-being in the pursuit.

There are different types of happiness, and wealth is better for some than others

We’ve been talking about “happiness” as if it’s one big thing. But happiness actually has many different components and flavors. Think about all the positive emotions you’ve felt — can we break them down into more specifics? How about:

• Contentment
• Gratefulness

...and that's just a short list.

It turns out that wealth may be associated with some of these categories of “happiness,” specifically self-focused positive emotions such as pride and contentment, whereas less wealthy people have more other-focused positive emotions like love and compassion.

In fact, in the Swedish lottery winners study, people’s feelings about their social well-being (with friends, family, neighbors, and society) were no different between lottery winners and regular people.

Money is a means to the things we value, not happiness itself

One major difference between lottery winners and non-winners, it turns out, is that lottery winners have more spare time. This is the thing that really makes me envious , and I would hypothesize that this is the main reason why lottery winners are more satisfied with their life.

Consider this simply: If we had the financial security to spend time on things we enjoy and value, instead of feeling pressured to generate income all the time, why wouldn’t we be happier?

This is good news. It’s a reminder that money, in and of itself, cannot literally buy happiness. It can buy time and peace of mind. It can buy security and aesthetic experiences, and the ability to be generous to your family and friends. It makes room for other things that are important in life.

In fact, the researchers in that lottery winner study used statistical approaches to benchmark how much happiness winning $100,000 brings in the short-term (less than one year) and long-term (more than five years) compared to other major life events. For better or worse, getting married and having a baby each give a bigger short-term happiness boost than winning money, but in the long run, all three of these events have the same impact.

What does this mean? We make of our wealth and our life what we will. This is especially true for the vast majority of the world made up of people struggling to meet basic needs and to rise out of insecurity. We’ve learned that being rich can boost your life satisfaction and make it easier to have positive emotions, so it’s certainly worth your effort to set goals, work hard, and move towards financial health.

But getting rich is not the only way to be happy. You can still earn health, compassion, community, love, pride, connectedness, and so much more, even if you don’t have a lot of zeros in your bank account. After all, the original definition of “wealth” referred to a person’s holistic wellness in life, which means we all have the potential to be wealthy... in body, mind, and soul.

Kahneman, D., & Deaton, A.. High income improves evaluation of life but not emotional well-being. . Proceedings of the national academy of sciences. 2010.

Killingsworth, M. A. . Experienced well-being rises with income, even above $75,000 per year .. Proceedings of the National Academy of Sciences. 2021.

Lindqvist, E., Östling, R., & Cesarini, D. . Long-run effects of lottery wealth on psychological well-being. . The Review of Economic Studies. 2020.

Guardiola, J., González‐Gómez, F., García‐Rubio, M. A., & Lendechy‐Grajales, Á.. Does higher income equal higher levels of happiness in every society? The case of the Mayan people. . International Journal of Social Welfare. 2013.

Diener, E., Ng, W., Harter, J., & Arora, R. . Wealth and happiness across the world: material prosperity predicts life evaluation, whereas psychosocial prosperity predicts positive feeling. . Journal of personality and social psychology. 2010.

Donnelly, G. E., Zheng, T., Haisley, E., & Norton, M. I.. The amount and source of millionaires’ wealth (moderately) predict their happiness . . Personality and Social Psychology Bulletin. 2018.

Piff, P. K., & Moskowitz, J. P. . Wealth, poverty, and happiness: Social class is differentially associated with positive emotions.. Emotion. 2018.

Jade Wu, Ph.D., is a clinical health psychologist and host of the Savvy Psychologist podcast. She specializes in helping those with sleep problems and anxiety disorders.

• Find a Therapist
• Find a Treatment Center
• Find a Psychiatrist
• Find a Support Group
• Find Online Therapy
• United States
• Brooklyn, NY
• Chicago, IL
• Houston, TX
• Los Angeles, CA
• New York, NY
• Portland, OR
• San Diego, CA
• San Francisco, CA
• Seattle, WA
• Washington, DC
• Asperger's
• Bipolar Disorder
• Chronic Pain
• Eating Disorders
• Passive Aggression
• Personality
• Goal Setting
• Positive Psychology
• Stopping Smoking
• Low Sexual Desire
• Relationships
• Child Development
• Self Tests NEW
• Therapy Center
• Diagnosis Dictionary
• Types of Therapy

When we fall prey to perfectionism, we think we’re honorably aspiring to be our very best, but often we’re really just setting ourselves up for failure, as perfection is impossible and its pursuit inevitably backfires.

• Emotional Intelligence
• Gaslighting
• Affective Forecasting
• Neuroscience

• Essay Editor

Can Money Buy Happiness Essay

1. introduction.

The relationship between money and happiness is a topic that has captured the interest of researchers, economists, and the general public alike. Understanding the complex interplay between these two factors is not only intriguing but also holds significant implications for individual well-being and societal development. In this essay, we aim to delve into the various dimensions of this relationship, exploring the psychological, social, and economic aspects that shape the connection between money and happiness. As we embark on this exploration, it is important to recognize the significance of this topic within the broader context of human experience. Money is often perceived as a means to achieve happiness, yet the reality is far more intricate. The pursuit of wealth and material possessions is deeply intertwined with notions of success, security, and fulfillment. However, the true impact of financial wealth on overall well-being extends beyond material possessions, encompassing psychological and emotional dimensions that warrant thorough analysis and consideration. By examining the underlying factors and implications of the relationship between money and happiness, we strive to contribute to a more nuanced understanding of this intricate connection and its implications for individuals and societies alike.

1.1. Background and Significance

The relationship between money and happiness has long been a topic of interest and debate in various fields, including psychology, economics, and sociology. This is due to the widespread assumption that a higher income directly correlates with greater satisfaction and well-being. However, recent research has revealed that the connection between money and happiness is more complex than previously thought. Understanding this relationship is significant not only for individuals seeking personal fulfillment but also for policymakers and organizations aiming to improve the overall quality of life in society. The significance of examining the relationship between money and happiness lies in the potential to challenge commonly held beliefs and myths about the role of wealth in well-being. By delving into the background of this topic, we can gain a deeper understanding of the various factors that contribute to an individual's happiness, beyond just financial wealth. Furthermore, this analysis will shed light on the implications for public policy and economic systems, as we strive to create environments that prioritize not only economic prosperity but also emotional and psychological well-being. In this essay, we will explore the historical context and contemporary significance of this topic, providing insight into the multifaceted nature of the relationship between money and happiness.

2. Defining Happiness and Money

In examining the relationship between money and happiness, it is essential to first establish clear definitions of both concepts. Happiness, often defined as a state of well-being and contentment, is a complex and subjective emotion that can be influenced by a range of factors, including personal experiences, social relationships, and individual values. Understanding the multidimensional nature of happiness is crucial in order to accurately assess its connection to financial status. Similarly, money is a multi-faceted concept that extends beyond simple monetary value. While money serves as a medium of exchange and a measure of wealth, it also has symbolic, social, and psychological implications. In this section, we will explore the various dimensions of both happiness and money, drawing on theoretical frameworks and empirical research to provide a comprehensive understanding of these fundamental concepts. By establishing clear and nuanced definitions, we can lay the groundwork for a thorough analysis of the intricate interplay between money and happiness, shedding light on the complex nature of human well-being in the context of financial resources.

2.1. Conceptual Definitions

In order to delve into the relationship between money and happiness, it is essential to first establish clear conceptual definitions of both terms. Happiness, often described as a subjective emotional state, encompasses feelings of contentment, satisfaction, and overall well-being. It can be influenced by various factors such as relationships, personal fulfillment, and yes, financial security. Money, on the other hand, refers to the medium of exchange used to acquire goods and services, as well as a measure of wealth and financial resources. It is important to differentiate between income, which is the actual cash flow, and wealth, which includes assets and investments. When analyzing the relationship between money and happiness, it is crucial to understand that while money can provide access to resources and opportunities that contribute to overall well-being, it is not the sole determinant of happiness. Research suggests that once basic needs are met, the correlation between income and happiness diminishes, indicating that other factors such as mental health, social connections, and personal values play a significant role. Furthermore, the concept of "hedonic adaptation" highlights that individuals have a tendency to return to a stable level of happiness regardless of financial fluctuations. Therefore, while money can certainly impact happiness, the relationship is complex and multifaceted.

3. Theoretical Perspectives on Money and Happiness

Economic Theory Within the realm of economic theory, the relationship between money and happiness is often approached from a utilitarian perspective. This perspective posits that individuals aim to maximize their utility, or happiness, through the consumption of goods and services. Within this framework, money is seen as a means to attain these goods and services, thereby increasing overall happiness. However, economic theory also acknowledges the concept of diminishing marginal utility, which suggests that as individuals acquire more money, the increase in happiness derived from each additional unit of wealth diminishes. This implies that the relationship between money and happiness is not linear, but rather subject to diminishing returns. Furthermore, economic theory also recognizes the role of relative income in shaping happiness levels. The concept of relative income posits that an individual's happiness is not solely determined by their absolute level of income, but also by how their income compares to that of others. This phenomenon, known as the "keeping up with the Joneses" effect, suggests that individuals derive satisfaction not only from their own wealth, but also from their position relative to their peers. As such, economic theory offers valuable insights into the complexities of the relationship between money and happiness, highlighting the role of both absolute and relative income in shaping individual well-being.

3.1. Economic Theory

In the section "3.1. Economic Theory", we delve into the theoretical perspectives on the relationship between money and happiness. Economic theory plays a fundamental role in understanding this relationship, as it offers various perspectives and frameworks for analyzing the impact of income and wealth on individual well-being. One of the key concepts within economic theory is the income-happiness paradox, which suggests that while higher income can lead to greater happiness, this effect diminishes as income rises beyond a certain threshold. Additionally, economic theory provides insights into the concept of diminishing marginal utility, which posits that the satisfaction derived from each additional unit of income decreases as income levels rise. Moreover, theories such as the Easterlin paradox and the relative income hypothesis offer further explanations for the complex interplay between money and happiness. These economic theories help to shed light on the nuanced and multifaceted nature of the relationship between money and happiness, offering valuable frameworks for understanding the impact of economic factors on overall well-being. By examining these theoretical perspectives, we can gain a deeper understanding of the complexities that underpin the connection between money and happiness, and the implications for individuals and societies as a whole.

4. Empirical Research Findings

Empirical research findings on the relationship between money and happiness have been extensively explored through subjective well-being surveys. These surveys seek to measure individuals' self-reported well-being, including their overall life satisfaction, positive affect, and negative affect. The results of these surveys have revealed interesting insights into the connection between money and happiness. While it is generally found that higher income is associated with greater life satisfaction, the correlation between income and positive affect is weaker. This suggests that while money can contribute to overall life satisfaction, it may have a less significant impact on day-to-day emotional experiences. Furthermore, subjective well-being surveys have also uncovered the concept of the "income-happiness paradox," which suggests that the relationship between income and happiness is more complex than previously assumed. This paradox refers to the diminishing returns of income on happiness, where the positive effect of increased income on well-being plateaus at a certain point. Beyond this threshold, further increases in income have minimal impact on individuals' overall happiness. These empirical research findings provide valuable insights into the nuanced relationship between money and happiness, shedding light on the limitations of the traditional assumption that more money translates to greater well-being.

4.1. Subjective Well-being Surveys

Subjective well-being surveys are a key tool in understanding the relationship between money and happiness. These surveys typically ask individuals to self-report their overall satisfaction with life, as well as their emotional experiences on a day-to-day basis. The data collected from these surveys provides valuable insights into how individuals perceive their own well-being in relation to their financial circumstances. Empirical research has shown that while there is a positive correlation between income and subjective well-being up to a certain point, the relationship becomes weaker as income levels increase. This suggests that money is indeed an important factor in overall happiness, particularly for those facing financial hardship. However, beyond a certain threshold, additional income may have diminishing returns in terms of increasing subjective well-being. Furthermore, subjective well-being surveys also consider factors beyond income that contribute to happiness, such as social relationships, health, and personal fulfillment. These surveys thus provide a more holistic understanding of the determinants of happiness, shedding light on the complex interplay between money and overall well-being. Overall, subjective well-being surveys offer rich and multifaceted insights into the nuanced relationship between money and happiness, contributing to a deeper understanding of this complex subject.

5. Factors Influencing the Money-Happiness Relationship

In examining the relationship between money and happiness, it is crucial to consider the various factors that influence this complex dynamic. One significant factor is the individual's income level. Research indicates that there is a positive correlation between income and happiness up to a certain point. After a certain income threshold, the link between money and happiness becomes weaker. This threshold varies across different countries and cultures, highlighting the importance of considering socio-economic context in understanding the money-happiness relationship. Moreover, the impact of income on happiness is also influenced by factors such as individual values, societal comparisons, and the presence of basic needs. For instance, individuals who prioritize intrinsic values over material wealth may derive more happiness from non-material factors, regardless of their income level. Additionally, the extent to which individuals compare their income with others in their society can significantly impact their subjective well-being. Thus, while income level plays a role in shaping happiness, its influence is mediated by various psychological and socio-cultural factors. This underscores the complexity of the money-happiness relationship and the need for a nuanced understanding of the multiple factors at play.

5.1. Income Level

Income level is one of the key factors influencing the relationship between money and happiness. Research has shown that there is a positive correlation between income and happiness up to a certain threshold, beyond which the impact of income on happiness diminishes. This threshold varies depending on the country and the cost of living, but studies generally suggest that once basic needs are met, the marginal utility of additional income decreases. Moreover, the way in which income is earned also plays a role in its impact on happiness. For example, individuals who derive their income from fulfilling and meaningful work tend to report higher levels of happiness compared to those who earn money through more mundane or unfulfilling means. This underscores the importance of not only the amount of income, but also the source and nature of the work that generates it. In addition, income inequality within a society can also influence the relationship between money and happiness. Research has found that in societies with higher levels of income inequality, individuals, regardless of their own income level, tend to report lower levels of happiness. This suggests that the distribution of income within a society can have significant implications for the overall well-being of its members. Overall, while income level certainly has an impact on happiness, it is just one piece of the complex puzzle that shapes the relationship between money and happiness.

Start your journey with Aithor

Personalized papers are done in minutes. One more sentence here

Related articles

As práticas de sustentabilidade nas empresas modernas.

1. Introdução A introdução do tema das práticas de sustentabilidade nas empresas modernas busca apresentar a importância crescente desse assunto no mundo empresarial atual. Ao longo dos anos, a sustentabilidade tornou-se um tema central para as organizações que desejam permanecer competitivas e responsáveis. Portanto, este documento se propõe a analisar as práticas de sustentabilidade adotadas pelas empresas modernas, destacando os benefícios, desafios, oportunidades e estudos de caso que evide ...

The Economic and Cultural Relations Between Nigeria and Ghana

1. Introduction Nigeria and Ghana are among the most important countries in Africa, and there is much that they can learn from one another, as they have much in common. Both nations make up the core of West Africa, along with Senegal, and are geographically, politically, and economically the most developed countries within the region. They share histories of the British colonial experience in West Africa and substantial natural and human resources. Economically, Nigeria has prospered from its v ...

Analyzing the Impact of External Factors on Business Strategy Using PESTEL Analysis

1. Introduction to Business Strategy and External Factors Every business organization operates within the framework of the general business environment. This framework essentially provides space within which business operations are conducted and is at best indifferent and at worst extremely hostile to the successful execution of a firm's business. This general business environment within which firms are embedded is composed of a variety of complex and dynamic features. Some of the key features ...

La influencia de la ubicación geográfica en el desarrollo económico de una región

1. Introducción Dada la importancia que ha circundado al desarrollo regional, tanto en el ámbito académico como en el de las decisiones de política pública, no debe extrañar que el análisis de los factores que determinan el desempeño económico regional haya sido un aspecto central de la teoría y la evidencia económica. Una dimensión de esa teoría es el énfasis en las ventajas comparativas en la localización; es decir, en las características abstractas de los factores que influyen de manera dife ...

The Impact of Tourism on the Economy and Environment of the Western Cape, South Africa

1. Introduction This paper reviews the booming international tourism sector. It discusses both the direct and indirect economic, social, and especially environmental impacts of tourism within the Western Cape, South Africa. This sector of the Western Cape economy has demonstrated its ability to become an important source of foreign income, jobs, livelihood, and, in some cases, participate in the well-being of the population. It is a seasonal sector displaying vulnerability during world upheaval ...

The Impact of Macro Trends on the Global Economy

1. Introduction Current meta trends are transforming the global economic landscape. If harnessed effectively, these trends could deliver needed new growth prospects and help alleviate some of the immense challenges emanating from economic and demographic legacies. A distinguishing feature of the current global economy is the extent to which a few countries are dictating the global economic landscape and dynamics. These countries are characterized by their large populations, which means that by ...

The Impact of Taxation on Economic Growth and Inequality

1. Introduction The relationship between tax policy and economic performance has captured the attention of social scientists since the time of Adam Smith, especially recently, since the application of the philosophy of Hayek in the nineties. It has been a common issue in discussions at meetings of international financial institutions. It can be said, in regard to macroeconomic policy, that the discussion begins with the old idea that the tax burden has a negative impact on growth because of the ...

The Impact of Financial Statement Analysis on Company Valuation

1. Introduction 1.1 Background Financial Statement Analysis (FSA) is one of the foundations of financial market capability, through which users generate special interest financial reports. In public, users can continually evaluate financial performance with an eye on assessing past, present, and future firm performance. Indirectly, company performance is examined through firm enterprise, equity valuation, and assessment of company credit risk from financial and non-financial data, which can be ...

Home — Essay Samples — Economics — Money — Importance of Money in the Pursuit of Happiness

Importance of Money in The Pursuit of Happiness

• Categories: Money

About this sample

Words: 562 |

Published: Jun 13, 2024

Words: 562 | Page: 1 | 3 min read

Table of contents

Direct impact of money on happiness, indirect impact of money on happiness, limitations and ethical considerations.

Cite this Essay

To export a reference to this article please select a referencing style below:

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Dr. Heisenberg

Verified writer

• Expert in: Economics

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

1 pages / 583 words

4 pages / 1656 words

4 pages / 1686 words

2 pages / 857 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Money

Managing finances can feel like navigating a maze—confusing, overwhelming, and often frustrating. Yet, mastering your finances is not just about cutting expenses or saving for a rainy day; it’s about developing a mindset of [...]

In today’s fast-paced world, the age-old advice from Shakespeare's *Hamlet*, “Neither a borrower nor a lender be,” resonates more than ever. The idea behind this wisdom encourages individuals to maintain their financial [...]

Willa Cather's short story "Paul's Case" serves as a fascinating lens through which we can explore the themes of money, wealth, and the insatiable desire for a life of glamour. Through the character of Paul, Cather crafts a [...]

Money is a crucial aspect of life, and saving it is a necessary practice that everyone should embrace. According to a recent survey, only 41% of Americans have saved enough money to cover unexpected expenses. This statistic [...]

Lailah G. Akita states that “You start to live when you commit your life to cause higher than yourself. You must learn to depend on divine power for the fulfillment of a higher calling.” People have the desire in every [...]

“A wise person should have money in their head, but not in their heart” (Jonathan Swift) Money is any clearly identifiable object of value according to the Webster Dictionary. The history of money concerns the development of [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Health Conditions

• Breast Cancer
• Cancer Care
• Caregiving for Alzheimer's Disease
• Chronic Kidney Disease
• Chronic Obstructive Pulmonary Disease (COPD)
• Digestive Health
• Heart Health
• Mental Health
• Multiple Sclerosis (MS)
• Rheumatoid Arthritis (RA)
• Sleep Health
• Type 2 Diabetes
• Weight Management

Condition Spotlight

Wellness Topics

• Mental Well-Being
• Sexual Health
• Vitamins and Supplements
• Women's Wellness

Product Reviews

• At-Home Testing
• Men's Health
• Women's Health

Featured Programs

• Video Series
• Pill Identifier
• Crohn’s and Ulcerative Colitis Essentials
• Diabetes Nutrition
• High Cholesterol
• Taming Inflammation in Psoriasis
• Taming Inflammation in Psoriatic Arthritis

Newsletters

• Anxiety and Depression
• Nutrition Edition
• Wellness Wire

Lifestyle Quizzes

• Find a Diet
• Find Healthy Snacks
• How Well Do You Sleep?
• Are You a Workaholic?

Find Your Bezzy Community

Bezzy communities provide meaningful connections with others living with chronic conditions. Join Bezzy on the web or mobile app.

Follow us on social media

Can't get enough? Connect with us for all things health.

Can You Buy Happiness?

Does money buy happiness? Maybe, but it’s not a simple question to answer. There are many studies on the topic and many factors that come into play, such as:

• cultural values
• where you live
• what matters to you
• how you spend your money

Some even argue that the amount of money matters, and that you may not feel additional happiness after amassing a certain amount of wealth.

Keep reading to learn what the research says about the connection between money and happiness.

What’s the connection between money and happiness?

Things that bring you happiness can be said to have intrinsic value. This means they’re valuable to you but don’t necessarily represent a standard value for happiness to others.

Money, on the other hand, has extrinsic value. This means that others recognize money has real-world value, too, and will (generally) accept it.

For example, you may find pleasure in the smell of lavender , but someone else might find it less appealing. Each of you assigns a different intrinsic value to the scent of lavender.

You can’t literally buy happiness at a store. But when money is used in certain ways, such as purchasing things that bring you happiness, you can use it to add intrinsic value to your life.

So, if the smell of lavender brings you joy, you could use money to buy it in various forms and keep it around your home or office. That, in turn, may increase your happiness. In this example, you’re using money to indirectly bring you happiness.

This can apply to numerous situations. But, while the things you buy may bring short-term happiness, they may not always lead to long-term or lasting happiness.

Here are some further arguments for and against money buying happiness.

Money may increase happiness and health for people affected by poverty

A 2018 study looked at what would happen over time if women in poverty -stricken households in Zambia were given regular cash transfers with no strings attached.

The most notable finding was that, over a 48-month period, many women had a much higher sense of emotional well-being and satisfaction about their health , for both themselves and their children.

A 2010 study based on a Gallup poll of more than 450,000 respondents suggests that making an income up to $75,000 a year may make you feel more satisfied with your life. This survey only looked at people in the United States.

Another Gallup poll from 2017 surveyed people from around the world and resulted in similar findings. According to survey results, emotional well-being may be reached when a person earns between $60,000 and $75,000. Satiation may occur when a person earns around $95,000.

Culture may affect this threshold . Depending on your culture, you may find happiness in different things than someone with different cultural values.

These studies and surveys suggest that money may help buy happiness when used to meet basic needs.

Access to healthcare, nutritious foods, and a home where you feel safe can improve mental and physical health and may, in some cases, lead to increased happiness.

Once basic needs are met, however, the happiness a person can gain from money may grow stagnant .

Does how you spend money matter?

Yes! This is the heart of the debate.

Buying “experiences” and helping others can lead to happiness. And there’s some actual research behind this.

Results from a survey of research on this topic suggest that spending money on experiences rather than tangible goods and giving to others with no thought of reward results in the greatest feelings of happiness.

This could take the form of going to a concert instead of buying a new TV, or buying someone you love a thoughtful gift rather than indulging yourself in an impulse buy.

And here’s another thing to think about: An extensive 2015 survey of literature about emotions and decision making found that your subjective judgement of the value of something has a lot to do with how you feel about the outcome. The authors called this the appraisal-tendency framework (ATF).

For example, if you’re afraid of your house being broken into, buying a state-of-the-art home security system may reduce your level of fear, which can then improve your happiness or emotional well-being.

In this case, your happiness is linked to your subjective experience of fear.

Is there a magic number?

Yes and no. Believe it or not, some research has been done on this.

A 2010 study by noted economist and psychologist Daniel Kahneman found that, where wealth is concerned, a person’s satisfaction with their life no longer increases after about $75,000 a year.

At this point, most people are better able to handle major life stressors like poor health, relationships, or loneliness than if they’re making less or are below the poverty line.

Beyond that, daily habits and lifestyle are the main drivers of happiness.

Results from a more recent study that looked at happiness in European populations points to a much lower dollar amount being equated to happiness: 27,913 euros a year.

That’s equivalent (at the time of the study) to about $35,000 a year. That’s half of the American figure.

This may have to do with relative costs of living in the United States compared to Europe. Healthcare and higher education are often less expensive in Europe than in the United States.

The researchers also mention several other cultural factors that may contribute to the lower correlation of money to happiness in these countries.

Other ways to increase happiness

Money may not buy happiness, but there are some things you can do to try to increase happiness. Consider the following:

• Write down what you’re grateful for. Literally “ counting your blessings ” can help you feel more positive. Instead of thinking about what you don’t have, think about the things you do have.
• Meditate. Clear your mind and focus on your inner self rather than your possessions. Focus on who you are versus what you own.
• Exercise. Exercise can help increase endorphins, which can lead to short-term happiness. Exercise may also help you feel more confident or comfortable in your own skin.

Money is unlikely to buy happiness, but it may help you achieve happiness to an extent. Look for purchases that will help you feel fulfilled.

And beyond that, you can find happiness through other nonfinancial means, like spending time with people you enjoy or thinking about the good things in your life.

How we reviewed this article:

• Campos D, et al. (2016). Meditation and happiness: Mindfulness and self-compassion may mediate the meditation–happiness relationship. DOI: https://www.sciencedirect.com/science/article/pii/S0191886915005450
• Costanzo ES, et al. (2004). Mood and cytokine response to influenza virus in older adults. DOI: https://doi.org/10.1093/gerona/59.12.1328
• Dunn EW, et al. (2011). If money doesn't make you happy, then you probably aren't spending it right. DOI: https://doi.org/10.1016/j.jcps.2011.02.002
• Emmons RA, et al. (2003). Counting blessings versus burdens: An experimental investigation of gratitude and subjective well-being in daily life. DOI: https://doi.org/10.1037//0022-3514.84.2.377
• Jebb AT, et al. (2018). Happiness, income satiation and turning points around the world. DOI:  https://doi.org/10.1038/s41562-017-0277-0
• Kahneman D, et al. (2010). High income improves evaluation of life but not emotional well-being. DOI: https://www.pnas.org/content/107/38/16489.full
• Lee M-A, at al. (2019). The keys to happiness: Associations between personal values regarding core life domains and happiness in South Korea. DOI: https://dx.doi.org/10.1371%2Fjournal.pone.0209821
• Lerner JS, et al. (2015). Emotions and decision making. DOI: https://www.annualreviews.org/doi/full/10.1146/annurev-psych-010213-115043
• Muresan GM, et al. (2019). Can money buy happiness? Evidence for European countries. DOI: https://link.springer.com/article/10.1007/s11482-019-09714-3
• Natali L, et al. (2018). Does money buy happiness? Evidence from an unconditional cash transfer in Zambia. DOI: https://dx.doi.org/10.1016%2Fj.ssmph.2018.02.002

Share this article

Read this next

What’s the link between PMS and depression? We’ll explain the relationship between your hormones and mood and go over ways to manage symptoms of…

A Duchenne smile is the type of smile that involves your eyes, too. First identified by 19th century scientist Guillaume Duchenne, this smile is…

The hedonic treadmill is a metaphor for the human tendency to pursue one pleasure after another. That’s because surges of happiness are likely to…

You know the benefits of good physical health, but what about good emotional health? Learn how being in touch with your emotions and how you're…

More Proof That Money Can Buy Happiness (or a Life with Less Stress)

It's not about the bigger home or the better vacation. Financial stability helps people escape the everyday hassles of life, says research by Jon Jachimowicz .

Featuring Jon M. Jachimowicz . By Michael Blanding on January 25, 2022 .

When we wonder whether money can buy happiness, we may consider the luxuries it provides, like expensive dinners and lavish vacations. But cash is key in another important way: It helps people avoid many of the day-to-day hassles that cause stress, new research shows.

Money can provide calm and control, allowing us to buy our way out of unforeseen bumps in the road, whether it’s a small nuisance, like dodging a rainstorm by ordering up an Uber, or a bigger worry, like handling an unexpected hospital bill, says Harvard Business School professor Jon Jachimowicz.

“If we only focus on the happiness that money can bring, I think we are missing something,” says Jachimowicz, an assistant professor of business administration in the Organizational Behavior Unit at HBS. “We also need to think about all of the worries that it can free us from.”

The idea that money can reduce stress in everyday life and make people happier impacts not only the poor, but also more affluent Americans living at the edge of their means in a bumpy economy. Indeed, in 2019, one in every four Americans faced financial scarcity, according to the Board of Governors of the Federal Reserve System. The findings are particularly important now, as inflation eats into the ability of many Americans to afford basic necessities like food and gas, and COVID-19 continues to disrupt the job market.

Buying less stress

The inspiration for researching how money alleviates hardships came from advice that Jachimowicz’s father gave him. After years of living as a struggling graduate student, Jachimowicz received his appointment at HBS and the financial stability that came with it.

“My father said to me, ‘You are going to have to learn how to spend money to fix problems.’” The idea stuck with Jachimowicz, causing him to think differently about even the everyday misfortunes that we all face.

To test the relationship between cash and life satisfaction, Jachimowicz and his colleagues from the University of Southern California, Groningen University, and Columbia Business School conducted a series of experiments, which are outlined in a forthcoming paper in the journal Social Psychological and Personality Science , The Sharp Spikes of Poverty: Financial Scarcity Is Related to Higher Levels of Distress Intensity in Daily Life .

Higher income amounts to lower stress

In one study, 522 participants kept a diary for 30 days, tracking daily events and their emotional responses to them. Participants’ incomes in the previous year ranged from less than $10,000 to $150,000 or more. They found:

Money reduces intense stress: There was no significant difference in how often the participants experienced distressing events—no matter their income, they recorded a similar number of daily frustrations. But those with higher incomes experienced less negative intensity from those events.

More money brings greater control : Those with higher incomes felt they had more control over negative events and that control reduced their stress. People with ample incomes felt more agency to deal with whatever hassles may arise.

Higher incomes lead to higher life satisfaction: People with higher incomes were generally more satisfied with their lives.

“It’s not that rich people don’t have problems,” Jachimowicz says, “but having money allows you to fix problems and resolve them more quickly.”

Why cash matters

In another study, researchers presented about 400 participants with daily dilemmas, like finding time to cook meals, getting around in an area with poor public transportation, or working from home among children in tight spaces. They then asked how participants would solve the problem, either using cash to resolve it, or asking friends and family for assistance. The results showed:

People lean on family and friends regardless of income: Jachimowicz and his colleagues found that there was no difference in how often people suggested turning to friends and family for help—for example, by asking a friend for a ride or asking a family member to help with childcare or dinner.

Cash is the answer for people with money: The higher a person’s income, however, the more likely they were to suggest money as a solution to a hassle, for example, by calling an Uber or ordering takeout.

While such results might be expected, Jachimowicz says, people may not consider the extent to which the daily hassles we all face create more stress for cash-strapped individuals—or the way a lack of cash may tax social relationships if people are always asking family and friends for help, rather than using their own money to solve a problem.

“The question is, when problems come your way, to what extent do you feel like you can deal with them, that you can walk through life and know everything is going to be OK,” Jachimowicz says.

Breaking the ‘shame spiral’

In another recent paper , Jachimowicz and colleagues found that people experiencing financial difficulties experience shame, which leads them to avoid dealing with their problems and often makes them worse. Such “shame spirals” stem from a perception that people are to blame for their own lack of money, rather than external environmental and societal factors, the research team says.

“We have normalized this idea that when you are poor, it’s your fault and so you should be ashamed of it,” Jachimowicz says. “At the same time, we’ve structured society in a way that makes it really hard on people who are poor.”

For example, Jachimowicz says, public transportation is often inaccessible and expensive, which affects people who can’t afford cars, and tardy policies at work often penalize people on the lowest end of the pay scale. Changing those deeply-engrained structures—and the way many of us think about financial difficulties—is crucial.

After all, society as a whole may feel the ripple effects of the financial hardships some people face, since financial strain is linked with lower job performance, problems with long-term decision-making, and difficulty with meaningful relationships, the research says. Ultimately, Jachimowicz hopes his work can prompt thinking about systemic change.

“People who are poor should feel like they have some control over their lives, too. Why is that a luxury we only afford to rich people?” Jachimowicz says. “We have to structure organizations and institutions to empower everyone.”

[Image: iStockphoto/mihtiander]

Related reading from the Working Knowledge Archives

Selling Out The American Dream

Article By :

Latest from HBS faculty experts

Expertly curated insights, precisely tailored to address the challenges you are tackling today.

Strategy and Innovation

Social responsibility, diversity and inclusion.

• Connection Between Money and Happiness
• I Don’t Believe Money Can Buy Happiness
• Does Money Buy Happiness?
• Money, Happiness and Satisfaction With Life
• Psychological Research: Money Can Buy Happiness
• Discussion: Can Money Buy Happiness?
• Money, Happiness and Relationship Between Them
• Happiness: Personal View and Suggestions
• Money and Happiness in Poor and Wealthy Societies
• Happiness Meaning and Theories
• Edwin Arlington Robinson: Money and Happiness in “Richard Cory”

Can Money Buy You Happiness? Essay

I believe that money can buy a person happiness due to several reasons related to the costs of comfortable and healthy living. These costs include housing, medicine, and meaningful experience, which improve the quality of life. Despite the fact that luxury is often seen as an attractive point in favor of happiness via increased budget or spending, it is not necessary for well-being. Some researchers propose that happiness is dependent on the living standards and the perception of living circumstances, this is a theory of comparison (Muresan et al.). On the other hand, it is also possible to perceive happiness as the satisfaction of personal needs (Muresan et al.). Nevertheless, multiple factors are crucial to form a happy life which need to be reviewed in detail.

First of all, given that happiness is related to the satisfaction of personal needs, there is also a need to consider the essential need of human life such as housing, medicine, and food. These expenditures are continuous throughout human life. In order to be healthy, one needs medication and medical expertise to ensure long life without illnesses. Electricity and water bills need to be paid to ensure comfortable life at home, which includes cleanness, cooking, and entertainment in the form of TV programs or the Internet. Moreover, technological development led to the digitalization of numerous jobs and created the opportunity to interact with anyone despite the distance. This is essential because, without a job, there’s no source of income to pay the described bills, and connection with family and friends is known to improve life satisfaction and address humans’ social needs.

Other personal needs are often related to the purchase of things and meaningful or memorable experiences. It is well-known that a good experience may improve a person’s mood, resulting in satisfaction with life (Mogilner et al.). These experiences vary due to human individuality but are often connected to romance, socialization, personal development. Romance refers to the maintenance of a romantic relationship with a loved person. This indirectly incurs additional costs such as future marriage organization, dates, and small gifts, which contribute to the improvement of the mood. It is widely accepted that personal development leads to satisfaction with one-self. Personal development is related to the acquisition of new skills and broadening of one’s horizon or accumulation of knowledge. The services of trainers and teachers coupled with the purchase of books are not free and considered as spending outside of basic living needs. Furthermore, buying time or expenditures to free oneself from daily chores or unmeaningful but necessary tasks contribute to personal well-being (Mogilner et al.). Numerous researchers found that money spent on buying time alleviates time stress, and people who utilize these services feel happier (Mogilner et al.).

Living standards vary from country to country due to the differences in economic conditions. Consequently, higher living standards refer to higher costs for basic needs. The theory of comparison suggests that an increase in a personal income would not lead to a significant increase in happiness, given that the income of others would similarly increase. Nevertheless, studies identified that a certain threshold exists after which the effect of income on happiness is significantly reduced. For example, in the US, it is equal to 75 000$ (Mogilner et al.), while in Europe, it is close to 35 000$ (Muresan et al.). This demonstrates that an excessive increase in income is not necessary for well-being. Simultaneously, it points to the fact that below this threshold, people are not as satisfied with life and happy as they could have been.

In conclusion, money can buy happiness but only if spent correctly. The correct spending of money involves improvement and maintenance of life via memorable experiences, meaningful things, and satisfaction of basic needs. Moreover, it is not necessary to have an excessive amount of money certain threshold exists, which demonstrates that money cannot amount to complete happiness but attributes to its significant portion.

Works Cited

Mogilner, C., Whillans, A., & Norton, M. I. “Time, money, and subjective well-being.” Handbook of well-being. Edited by E. Diener, S. Oishi, & L. Tay, DEF Publishers, 2018.

Muresan, Gabriela Mihaela, et al. “Can Money Buy Happiness? Evidence for European Countries.” Applied Research in Quality of Life , vol. 15, no. 4, 2019, pp. 953–970. Web.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2022, August 14). Can Money Buy You Happiness? https://ivypanda.com/essays/can-money-buy-you-happiness/

"Can Money Buy You Happiness?" IvyPanda , 14 Aug. 2022, ivypanda.com/essays/can-money-buy-you-happiness/.

IvyPanda . (2022) 'Can Money Buy You Happiness'. 14 August.

IvyPanda . 2022. "Can Money Buy You Happiness?" August 14, 2022. https://ivypanda.com/essays/can-money-buy-you-happiness/.

1. IvyPanda . "Can Money Buy You Happiness?" August 14, 2022. https://ivypanda.com/essays/can-money-buy-you-happiness/.

Bibliography

IvyPanda . "Can Money Buy You Happiness?" August 14, 2022. https://ivypanda.com/essays/can-money-buy-you-happiness/.

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

studpaper.com

Home / Samples / Economics / Essay Example: Can Money Buy Happiness Essay

Essay Example: Can Money Buy Happiness Essay

Can Money Buy Happiness Essay

Introduction:

In the perpetual pursuit of happiness, the question of whether money can truly buy happiness has been a subject of contemplation for centuries. While some argue that financial wealth is a key determinant of happiness, others emphasize the importance of non-materialistic factors. This essay explores the multifaceted relationship between money and happiness, delving into psychological, sociological, and philosophical perspectives.

Understanding Happiness:

Psychological Perspectives:

Psychologists have long sought to unravel the complex nature of happiness. From the standpoint of positive psychology, happiness is often conceptualized as a subjective experience, influenced by a combination of genetic, environmental, and personal factors. Money, as a facilitator of comfort and security, can contribute to a sense of well-being. However, it is crucial to recognize that beyond a certain threshold, the correlation between income and happiness diminishes. The adaptation theory suggests that individuals adjust to their financial status, and the initial boost in happiness derived from increased wealth tends to fade over time.

Sociological Dimensions:

Sociological analyses of happiness often explore the role of societal structures and cultural norms. In societies where basic needs are unmet, an influx of money can indeed elevate happiness levels. However, in affluent societies, the pursuit of material wealth may lead to a hedonic treadmill, where individuals continuously strive for more without achieving lasting satisfaction. This societal perspective raises questions about the systemic factors that influence our perceptions of happiness and the role of economic policies in fostering well-being.

The Intersection of Money and Happiness:

Material Comfort and Well-Being:

One undeniable aspect is the role of money in providing material comfort. Access to healthcare, education, and a secure living environment can significantly impact an individual’s overall well-being. The absence of financial stressors allows for a focus on personal growth, relationships, and leisure activities that contribute to a fulfilling life. However, it is essential to recognize that these material comforts alone do not guarantee happiness and that other factors, such as mental health and social connections, play pivotal roles.

The Hedonic Adaptation:

The concept of hedonic adaptation suggests that individuals have a baseline level of happiness to which they tend to return, regardless of external circumstances. This adaptation phenomenon challenges the notion that sustained happiness can be achieved through the continuous accumulation of wealth. The initial thrill of a new purchase or financial gain may bring temporary joy, but humans are remarkably adept at adjusting to new circumstances, leading to a recalibration of their happiness set point.

Non-Materialistic Influences on Happiness:

Quality of Relationships:

Arguably, one of the most profound sources of happiness lies in the quality of one’s relationships. Money can facilitate opportunities for shared experiences, travel, and leisure, but it cannot replace the emotional richness derived from meaningful connections. Studies consistently show that strong social bonds contribute significantly to overall life satisfaction. Thus, while money can create a conducive environment for building relationships, the depth and authenticity of those connections depend on factors beyond financial means.

Personal Fulfillment and Growth:

Happiness often intertwines with a sense of personal fulfillment and growth. Pursuing passions, engaging in meaningful work, and cultivating a sense of purpose can elevate one’s life satisfaction. While financial resources can support these endeavors, the intrinsic motivation derived from pursuing one’s interests plays a more significant role. This underscores the importance of aligning personal values with life choices, transcending the monetary dimension in the pursuit of happiness.

Challenges to the Notion of Money Buying Happiness:

Erosion of Meaning:

The relentless pursuit of wealth can sometimes lead to an erosion of meaning and purpose. In a consumer-driven society, individuals may find themselves trapped in a cycle of materialism, neglecting aspects of life that contribute to a deeper sense of fulfillment. The commodification of experiences and relationships can undermine the intrinsic value they hold, perpetuating a superficial understanding of happiness tied to external possessions.

Social Comparison and Envy:

In a world where social comparison is prevalent, the accumulation of wealth can foster feelings of inadequacy and envy. The constant exposure to curated images of affluence on social media platforms can create unrealistic standards of success and happiness. This societal pressure to conform to materialistic ideals can lead to a perpetual dissatisfaction, as individuals measure their worth against unattainable benchmarks, ultimately undermining their subjective well-being.

Balancing Wealth and Well-Being:

Financial Literacy and Mindfulness:

Achieving a balance between financial success and well-being necessitates financial literacy and mindfulness. Understanding the role of money as a tool rather than an end in itself is crucial. Financial decisions guided by thoughtful consideration of personal values and long-term goals can contribute to a more meaningful and sustainable pursuit of happiness.

Investing in Experiences:

Research consistently highlights the enduring joy derived from experiences compared to material possessions. Allocating resources towards travel, education, and shared adventures can enhance overall life satisfaction. This shift in focus from acquiring things to accumulating experiences aligns with the idea that the memories and emotions associated with experiences contribute more significantly to long-term happiness.

Conclusion:

In conclusion, the relationship between money and happiness is intricate and multifaceted. While money undeniably plays a role in providing for basic needs and creating opportunities for a comfortable life, its ability to buy lasting happiness is contingent on various factors. Psychological adaptation, the quality of relationships, personal growth, and societal influences all contribute to the complex tapestry of human happiness. Striking a balance between financial success and non-materialistic pursuits emerges as a key strategy for a more holistic and sustainable approach to well-being. Ultimately, the pursuit of happiness requires a nuanced understanding of the interplay between material resources and the intangible elements that enrich the human experience.

Related Samples:

• Essay Example: Essay on Acquisition of Money and Possessions
• Essay Example: Reflections on How Materialism Led to the Development of a Two-Dimensional Society
• Essay Example: I Am a Materialistic
• Essay Example: Difference Between Communism vs. Capitalism
• Essay Example: Can Money Buy Happiness? Essay
• Essay Example: Essay on Why Happiness Is More Important Than Money

Looking for this or a Similar Assignment? Click below to Place your Order

Request for Studpaper Writing Service Today!

With a team of over 1500 homework writing experts, we are prepared and eager to assist you in enhancing your writing skills

Who We Are Contact Us FAQs

Privacy Policy Cookie Policy Refund Policy Revision Policy Terms and conditions Fair user disclaimer

Blog Pricing Samples Expert

Using this writing service is legal and is not prohibited by any university/college policies. MD: Looking for technical writing help? Get professional technical writing help from our academic experts

The papers we provide at Studpaper should serve as model and reference papers for our clients. These research papers should solely be used for reference purposes.

Copyright © 2024 Studpaper. All rights reserved.

• Bipolar Disorder
• Therapy Center
• When To See a Therapist
• Types of Therapy
• Best Online Therapy
• Best Couples Therapy
• Managing Stress
• Sleep and Dreaming
• Understanding Emotions
• Self-Improvement
• Healthy Relationships
• Student Resources
• Personality Types
• Guided Meditations
• Verywell Mind Insights
• 2024 Verywell Mind 25
• Mental Health in the Classroom
• Editorial Process
• Meet Our Review Board
• Crisis Support

Does More Money Make You Happier? Yes, But It's Complicated

Research says it can help, but there are a few caveats...

Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Dr. Sabrina Romanoff, PsyD, is a licensed clinical psychologist and a professor at Yeshiva University’s clinical psychology doctoral program.

Verywell Mind / Getty Images

Why We Think Money Might Buy Happiness

The relationship between money and happiness.

• Limitations
• The Role Money Plays
• Finding Happiness Beyond Money

We've all heard the phrase: “Money can't buy happiness.” But how true is this, exactly? Growing up poor in rural Idaho, I often took comfort in this idea, reassuring myself that those with more money weren't necessarily any happier than I was. But sometimes I wondered: Am I just fooling myself?

Of course, money can't replace the deep joy and meaning we find in relationships and experiences. But there's no denying that financial security feels pretty darn good.

“Money can bring about happiness or a sense of satisfaction that can feel like happiness because it allows security and reduces constant financial anxiety and fear,” explains Sarah Whitmire , LPC-S, ATR-BC, a licensed professional counselor and founder of Whitmire Counseling and Supervision.

A Look Ahead

Many mental health experts will point out that money alone is no guarantee of happiness. Other factors like relationships, purpose, and personal growth have a more powerful impact. 

But money does have some effect on happiness. How much? Keep reading on to learn more about this connection and whether a few extra dollars in your wallet truly translates to a joyful heart or if the key to happiness is something money can't buy.

When you think of happiness, things like friends, family, and life’s simple pleasures often come to mind—not money. So, where does the idea that money can buy happiness come from?

According to Kanchi Wijesekera , PhD, a licensed clinical psychologist and clinical director of the Milika Center for Therapy & Resilience , the origin of this idea is multifaceted. She notes that poverty itself is associated with more stress and a higher risk for mental health issues . 

“There are some caveats, but it can be harder to feel happy when you're living under the chronic stress of poverty and all it entails,” she says. “You may not have the same time and energy to invest into your well-being as if you were to be financially well-off.”

She stresses that this doesn’t mean people with less financial means aren’t happy or can’t be happy. But it can be more challenging to feel happy compared to someone well-off.

Kristin Anderson , LCSW, a licensed psychotherapist and founder of Madison Square Psychotherapy , notes that the idea that money can buy happiness is often deeply engrained in many societies.

“These societies often equate financial success with a good life, and it can be easy to get caught up in that idea,” she says. “It’s the idea that financial resources can provide security, comfort, and opportunities, which are all associated with happiness.”

While money certainly does allow people to afford necessities that can improve their quality of life, such as healthcare and education, Anderson says these are no guarantee of greater happiness. 

Money can enhance our living conditions, but it does not guarantee genuine happiness, which often comes from personal fulfillment, relationships, and emotional well-being.

Whitmire explains that modern consumer culture has a role in creating this idea. By promoting the idea that buying goods and services can make us happier, we’re more likely to believe that having more equals being more fulfilled. 

Dr. Wijesekera notes that our own hard-wired tendencies help fuel these beliefs. Even when we are comfortable, we might think we’d be even happier if we just had a little bit more , whether it’s a new car, a better job, or a bigger house. (Hint: it doesn't).

Money alone doesn’t bring happiness , but researchers have found evidence supporting the connection between financial security and increased happiness and well-being.

According to a 2010 study, higher income does indeed help increase subjective life satisfaction as money can help alleviate emotional pain associated with challenging life events like divorce and poor health. Other research supports the link between financial security and happiness. In fact, studies show that security is particularly connected to happiness in societies where financial instability is more common.

A recent 2023 study has added another layer to this age-old debate by suggesting that higher income levels are connected to increased happiness.

The study found that happiness increases don't plateau once you hit a certain income. Instead, these benefits continue to grow, albeit at a slower pace.

That said, researchers do  note that money isn’t the only factor contributing to happiness. But money undoubtedly plays a huge in creating security, access to resources, and growth opportunities, all of which impact your overall well-being. 

The Limitations of Money in Achieving Happiness

It’s tempting to think that earning a bigger paycheck will be the secret to a fulfilling life. But try not to hinge your happiness on your bank account. Having more money may help increase happiness, yes, but can also bring about diminishing returns if the pursuit of extra cash affects your quality of life.

Studies suggest that beyond a certain income threshold—often cited around $75,000 to $100,000 annually—the additional happiness gains from extra income begin to level off. A boost in salary can make a big difference if you are struggling with basic needs. But you’re less likely to notice the extra income if you are already comfortable or doing well. 

We like to think that money solves all our problems, but the pursuit of financial rewards can be more harmful than good, especially if it costs us healthy relationships and social connections. Sure, having extra cash would be great, but if it means sacrificing meaningful connections with others, are the benefits even worth it?

Our emotional health and well-being thrive on strong relationships and social interactions. What good are financial rewards if they're overshadowing your relationships and experiences?

I know money solves a lot of problems, but it can't buy a sense of purpose and meaning. Think of it like this: if your job is financially rewarding but emotionally draining, burnout is inevitable. You can't appreciate all your hard work and reap the financial benefits if you're emotionally and mentally exhausted. And no amount of money can make your brain or body feel any less tired.

The Role of Money in Different Aspects of Life

The ability to afford what we want and need is often linked to a higher quality of life. Feeling financially secure can reduce anxiety since you’re less worried about how you’ll pay for life’s expected and unexpected expenses.

“We know financial stability also affords improved access to healthcare, leisure activities, and opportunities for personal growth, all of which contribute to better mental and emotional well-being,” Dr. Wijesekera says.

Financial stress can leave you in a constant state of fight or flight mode , she adds. Access to more money and resources shifts you from survivor mode into a space where you can focus on hobbies, friends, or things that make you happy.

Not having to worry about money allows someone to think about their mental health. They have time and an advantage to think about how they are feeling and doing. They do not have a survivalist mentality and can spend time thinking about their pursuits and how they can thrive.

In other words, not having to stress about money is what contributes to happiness the most.

“Imagine the difference between constantly feeling stressed about finances versus having peace of mind knowing your needs are met,” Anderson says. “While money itself is not a direct source of happiness, the security it provides can create a more stable environment for mental health to flourish.”

While it’s important to recognize the relationship between money and happiness, it’s not a silver bullet. True happiness comes from the often intangible things money can’t guarantee including happy relationships, a sense of purpose, and feeling connected to a community.

Strategies for Finding Happiness Beyond Money

There’s no question that financial security can offer comfort and ease stress, but it’s also true that the things that bring us happiness are immaterial.

Some research-backed ways to bring more happiness to your life (that, fortunately, don’t cost money):

Cultivate Positive Relationships

Research has consistently shown that having strong, supportive relationships is essential for mental health and life satisfaction. One 2023 study, in particular, found a significant positive relationship between social support and increased happiness.

Focus on cultivating stronger relationships with your family, friends, and community to gain greater emotional support and a sense of belonging . “Engaging in meaningful interactions and shared activities with loved ones can create lasting memories and strengthen bonds, leading to a sense of fulfillment and happiness that material possessions often cannot match,” Whitmire says.

Dr. Wijesekera suggests building a supportive social network by participating in free community events, joining support groups, or volunteering.

Find Meaning and Purpose

Pursuing a sense of purpose and meaning in your life can also play a pivotal role in your happiness and life satisfaction.

Interestingly, some research suggests that feeling a sense of purpose might be connected to financial success as well. In one study, people who felt a sense of purpose in their work earned more money than those who felt their work lacked meaning.   (Of course, earning more might also help make your work feel more meaningful, too). 

Some experiences like hobbies, volunteer work, and engaging activities can help you find purpose. Dr. Wijesekera suggests exploring inexpensive or free hobbies such as drawing, reading library books, and cooking new recipes. Being open to new experiences can bring a profound sense of fulfillment and meaning that will ultimately help you feel happier.

Practice Gratitude

Gratitude can be a powerful antidote to feelings of sadness and negativity. That’s because regularly reflecting on the things you love and appreciate can help shift your focus away from what might be lacking. Research has found that gratitude interventions such as gratitude journaling increase positive moods, subjective happiness, and life satisfaction.

“Taking time each day to appreciate the good things in your life, big or small, can shift your focus from what you lack to what you have,” Anderson says. “By acknowledging the positive aspects of your life, you can significantly boost your mood and overall well-being.”

Tip From a Clinical Psychologist

Practicing habits such as maintaining a gratitude journal, verbal affirmations, giving thanks, or reflecting on daily blessings can reduce stress and profoundly elevate one's well-being.

Practice Mindfulness and Other Self-Care Strategies

Mindfulness and other self-care practices are powerful tools for fostering better emotional well-being. Mindfulness centers on being fully present and engaged in the present moment without worrying about the past or future.

One study found that mindfulness was associated with various positive outcomes including higher levels of happiness and decreased anxiety and depression. Other self-care activities like meditation , exercise, and adequate sleep are also low-cost or free ways to enhance happiness.

Dr. Wijesekera recommends trying free apps or online videos to learn meditation techniques. She also says that simple mindfulness exercises like deep breathing and mindful walking can be beneficial.

Spending Time in Nature

Dr. Wijesekera recommends spending time outdoors in nature to help alleviate some of the physiological effects of stress. She points to research on the Japanese practice of shinrin-yoku or “ forest bathing .”  This report found that spending just 20 minutes walking outdoors can lower your heart rate, blood pressure, and cortisol levels (a stress hormone).

“Visit local parks, hiking trails, or beaches, which are often free,” she says. “Gardening, even in small spaces or community gardens, can also be a low-cost way to connect with nature.”

Help Others

Anderson also recommends volunteering and finding ways to assist others in your life. “Volunteering your time or doing something kind for someone else can be incredibly rewarding,” she says. “It strengthens your sense of community and purpose, and seeing the positive impact you have on others can be a great source of happiness.”

While evidence suggests that money increases happiness, it isn’t the only thing that brings joy. Plenty of things bring fulfillment to your life that doesn’t involve boosting your financial bottom line.

Strengthening relationships, going after meaningful goals, and caring for yourself are all proven strategies for improving your happiness and well-being. Focusing on those areas can help you create a more fulfilling life, regardless of your finances.

Remember, happiness doesn't come from a single source. By incorporating these strategies into your life and building a fulfilling lifestyle, you can find joy and contentment, regardless of your financial situation.

The answer to the question of whether money can buy happiness is, well, complicated. Research shows that money can alleviate stress and improve life satisfaction. But those benefits will start to taper off after a certain point. A higher income level provides financial security and access to resources and opportunities but doesn't guarantee enduring happiness.

Happiness isn’t just about what’s in your bank account. Finding happiness is an ongoing process that involves many facets. And while there’s nothing wrong with pursuing financial well-being, don't sacrifice your mental health in the long run. Instead, find a balance between your financial pursuits and relationships and experiences. That, we say, is the best approach for unlocking lasting happiness.

Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being .  Proceedings of the National Academy of Sciences ,  107 (38), 16489–16493. https://doi.org/10.1073/pnas.1011492107

Ek, C. (2017). Some causes are more equal than others? The effect of similarity on substitution in charitable giving .  Journal of Economic Behavior & Organization ,  136 , 45–62. https://doi.org/10.1016/j.jebo.2017.01.007

Buttrick, N., & Oishi, S. (2023). Money and happiness: A consideration of history and psychological mechanisms .  Proceedings of the National Academy of Sciences ,  120 (13), e2301893120. https://doi.org/10.1073/pnas.2301893120

Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023). The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran .  Heliyon ,  9 (9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529

Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016). The value of a purposeful life: Sense of purpose predicts greater income and net worth .  Journal of Research in Personality ,  65 , 38–42. https://doi.org/10.1016/j.jrp.2016.07.003

Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019). Positive psychology and gratitude interventions: A randomized clinical trial .  Frontiers in Psychology ,  10 , 584. https://doi.org/10.3389/fpsyg.2019.00584

Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021). Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women .  International Journal of Environmental Research and Public Health ,  18 (3), 925. https://doi.org/10.3390/ijerph18030925

Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010). The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan .  Environmental Health and Preventive Medicine ,  15 (1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Essay on Can Money Buy Happiness

Students are often asked to write an essay on Can Money Buy Happiness in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Can Money Buy Happiness

Introduction.

Money is essential in life, but can it buy happiness? This question has sparked debates worldwide.

Money and Materialistic Joy

Money can buy materialistic things that bring joy. For example, your favorite video game or a bicycle can make you happy, and you need money for them.

Money and Freedom

Money can provide freedom to explore hobbies, travel, and experience new things, which can lead to happiness.

Limitations of Money

However, money can’t buy love, friendship, health, or peace of mind, which are essential for true happiness.

In conclusion, while money can buy temporary joy, it can’t buy lasting happiness.

250 Words Essay on Can Money Buy Happiness

The age-old question, “Can money buy happiness?” has sparked countless debates among philosophers, economists, and psychologists. While some argue that wealth is a key contributor to happiness, others believe that happiness lies in intangible aspects of life.

The Power of Wealth

Money, undeniably, holds power. It provides the ability to afford basic necessities, luxuries, and experiences. It can help in eliminating stressors like debt and financial instability, which are often associated with unhappiness. From a utilitarian perspective, money can indeed buy happiness as it facilitates access to goods and services that can improve quality of life.

The Limitations of Money

However, the relationship between money and happiness is not linear. Beyond a certain income level, additional wealth does not equate to increased happiness. This is known as the ‘Easterlin Paradox’. Also, an overemphasis on wealth can lead to materialism, which has been linked to decreased well-being and increased mental health issues.

The Role of Intangible Aspects

While money can provide comfort and security, it cannot buy intangible aspects such as love, friendship, health, or peace of mind. These aspects, according to many psychologists, are the true essence of happiness. They provide a sense of belonging, purpose, and contentment that money cannot procure.

In conclusion, money can buy temporary happiness by providing comfort, security, and experiences. However, it falls short in procuring lasting happiness that is often found in intangible aspects of life. Thus, the pursuit of wealth should be balanced with the pursuit of intangible aspects to achieve holistic happiness.

500 Words Essay on Can Money Buy Happiness

The question, “Can money buy happiness?” is a popular one. Many people think that having more money means being happier. But is that really true? Let’s explore this idea in a simple way.

Money and Basic Needs

Firstly, money is important because it helps us meet our basic needs. It allows us to buy food, clothes, and a place to live. Without money, we would struggle to survive. In this way, money can bring a certain level of happiness. It provides comfort and security, which are key to feeling satisfied in life.

Money and Material Possessions

Secondly, money can buy material things. This includes toys, gadgets, cars, or even vacations. These things can make us feel happy for a while. But after some time, the excitement fades. We start to want newer, better things. This is called the “hedonic treadmill.” It means that buying stuff only brings short-term happiness. Over time, we get used to what we have and want more.

Money and Relationships

Thirdly, let’s consider money and relationships. Money can help us do nice things for others. We can buy gifts for friends or donate to those in need. This can make us feel good about ourselves. But, money can’t buy true friendship or love. These are based on trust, understanding, and shared experiences. They can’t be bought with money.

Money and Happiness: The Real Picture

So, can money buy happiness? The answer is not straightforward. Money can buy things that make life more comfortable and enjoyable. But it can’t buy everything. It can’t buy love, good health, time, or peace of mind. These things are often the most important for true happiness.

Research shows that after a certain income level, more money doesn’t equal more happiness. This level is enough to meet basic needs and some wants. Beyond that, more money might not make a big difference in how happy you are.

In conclusion, money can buy some forms of happiness, but not all. It’s important to remember that the best things in life aren’t things. They are experiences, relationships, and good health. These can’t be bought with money. So, while money is important, it’s not the only path to happiness. It’s just one piece of the puzzle.

Remember, happiness comes from within. It’s about being content with what you have, not what you don’t have. It’s about enjoying the simple things in life. And most importantly, it’s about being true to yourself and your values.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

• Essay on Can Computers Replace Teacher
• Essay on Can Anyone be Above the Law
• Essay on Bullying

Apart from these, you can look at all the essays by clicking here .

Happy studying!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Smart Guide to Writing an Essay About Happiness

hellohappy.org

learn now to write great essays & stay happy

Can money buy happiness: argumentative essay.

Ranging from your dream car, fashionable clothes to a big mansion in your dream city, many people believe that money is the key to their happiness. When tasked with writing a ‘can money buy you happiness’ argumentative essay, many students succumb to fear as they are unsure of what to cover within the essay.

This article will address various tips for writing a persuasive essay on money and happiness and present a quality argument.

Approaches to writing a money and happiness essay

The key to a ‘money can buy you happiness’ essay is mastering how to present your argument in a flowing manner that is easy for the audience to follow. Some unique approaches to this essay include:

The Toulmin Method

Here, it would help to start the first paragraph of your body with a claim that shows your stand on the topic. For instance, you may start by arguing that money cannot buy happiness.

Next, provide evidence from various case studies and your own experiences to support this argument. In our case, we may argue that many rich people are depressed and highlight how money can deny you happiness.

However, it is crucial to back your claims with facts from previous studies and publications to strengthen your argument. Next, show the reason as to why you support this topic and cover various loopholes that could result in criticism of your position.

The Rogerian Method

This method is more interactive and makes a two-way argument while showing why the counterargument is faulty. In this approach, you can discuss why people believe that money can buy happiness.

Next, highlight the reasons that invalidate this assumption and show how your argument holds in light of various evidence. Finally, cover potential criticisms of your perspective and potential limitations to your standpoint.

If you opt to argue that money can’t buy happiness, this section should cover how money is required to sustain your day-to-day needs and how suffering may be caused by its lack thereof.

Steps for writing a ‘You don’t need money to be happy’ essay

1. select your topic.

Although a ‘does money make you happy’ essay is more specific than a happiness essay, it is broad and leaves much room for incomplete arguments. You can thus opt to specify further your thesis statement making for a better argument.

Some important happiness and money essay thesis ideas include:

• Having enough money to meet basic needs is crucial for happiness
• Money can help ensure career success and inspire happiness
• You can manage to be happy even when struggling financially
• Expensive purchases are not an accurate definition of happiness

These ideas are easier to structure and leave less room for criticism. Before you start writing, consult your tutor with your selected topic to determine if it’s okay.

2. Research

While you can make multiple arguments off your mind, you require ample research to back your claims. Here, search for publications that are both for and against your argument. This will help gauge your standpoint and structure your essay while acknowledging various criticisms from existing work.

An outline is crucial for helping you structure your argument in an easy-to-follow manner. For this, organize the points you gathered when brainstorming and researching for your paper.

Next, separate these points into sections and place related ideas in close paragraphs. Finally, ensure that each section starts with a topic section and includes an argument that relates the sentence to your thesis statement.

After writing your final copy, gauge it for various structural and grammatical errors. For this, ensure that your paper is formatted as per the required style and ensure that your conclusion supports your thesis statement.

Also, consider checking the citations to ensure they are in the correct format, preventing loss of marks on minor details.

Writing a “why can’t money buy you happiness essay does not have to rob you of your joy. This guide should come in handy to guide your writing efforts and secure you a decent grade. If you still have a question, feel free to contact our experts for further assistance.

You Might Also Like

How to write a good analysis essay: outline & sample topics, practical advice on how to write an argumentative essay, guide on how to write an essay about what makes me happy, leave a reply cancel.