Money = Happiness?

Alice Quan

Opinions

Everyone has heard the saying “money can’t buy happiness” at least once in their life. However, research has shown that this might not be completely true. Depending on how much you have and how you spend it, money can indeed buy a certain amount of joy.

Research offers the view that happiness rises in line with salary, up to a point. In 2010, psychologist Daniel Kahneman and economist Angus Deaton undertook research that looked at 45,000 Americans and their life satisfaction. They found that participants with higher incomes reported a higher level of emotional well-being, up to an annual income of $75,000. Beyond that, the correlation drops off. This may be because $75,000 is the average income required by most to live comfortably. The ability to meet basic needs without having to work overtime or take on multiple jobs means more time spent with family and friends. According to a Harvard study that tracked the physical and mental well-being of hundreds of men for over 80 years, close relationships keep people happy throughout their lifetime, more than money or fame.

Once you cover basic needs, money can buy happiness depending on how you spend it. There is a theory that spending money on experiences brings about more happiness than spending it on material objects. A 2014 study backs this up, concluding that money spent on experiences enhances social relationships and one’s experiences are less likely than material objects to be compared to those of others.

Happiness also depends on how you get the money you have. You could be earning $300,000 annually, which in theory sounds great, but if you’re working 80 hours a week and can’t enjoy the money you’re making, then what’s the point?

How much money a person needs to be happy is profoundly variable. Happiness depends on how hard you work to earn your money, how much you need to cover basic needs, and what brings you personal joy. For one person, this could be a season’s pass to Canada’s Wonderland, while a monthly massage is sufficient for another. Ultimately, depending on how you spend it, money can definitely increase life satisfaction. If you spend money on things that align with your values, there’s a good chance you’ll become happier.

However, money is not the most important factor that goes into happiness. Spending time with loved ones, taking care of your mental and physical health, and doing things you enjoy are all ways to become a happier person. These goals are achievable without immense wealth, but a big wad of cash would be nice, too.