What You Should Really Know About Happiness And Money
Humans can find happiness in a variety of areas of life. What makes one person feel content may not do the same for another. You may have heard the expression “money can't buy happiness.” While there may be some truth to this saying, the relationship between money and happiness can be complex. In this article, we’ll explore the connection between money and happiness and ways to increase your happiness regardless of your financial situation.
Wealthy and happy
Being wealthy and happy simultaneously is possible, despite the expression “money can’t buy happiness.” Although a famous study by Nobel Prize winner Daniel Kahneman previously found that after people reach a certain income level ($75,000) their happiness reaches a certain plateau, new research finds that most people’s happiness often does continue to rise with greater income.
The exception, per a joint study by Kahneman and Matthew Killingsworth, is people who are wealthy and unhappy. For these individuals, more wealth doesn’t tend to make a difference in their levels of happiness.
Many people believe that if they just had more money, they’d automatically be happier. However, money can be a source of stress as well. For example, as money divides people, it can cause anger, envy, betrayal, and several other negative emotions that can create problems. Those who once believed that money would solve their problems may be disheartened to find that it doesn't fix relationships that were already damaged or make them feel less lonely than before. It may not make a tragedy they’ve experienced suddenly go away or make a betrayal they went through hurt any less. Money may provide temporary relief, especially from negative emotions, but eventually, these feelings may resurface.
Low-income and happy
Many people can be happy with less money in their bank accounts. There are usually other factors in life that contribute to a person’s overall contentment. These may include the strength of their relationships and social support network, their contentment at work, the state of their physical and mental health, and their impact on the world. Although someone may lack in an area like money, they may be wealthy in other ways, and usually, these other places may end up bringing them more joy than money could. Happy people also tend to practice gratitude for what they do have, which research shows can lead to greater life satisfaction.
However, not having money can be just as divisive as having a lot of it. People who don't have money can also feel anger, envy, and betrayal. They can also be just as likely to have problems in relationships and to feel lonely or stressed. However, someone with fewer resources may have a higher likelihood of these things because there is no money available to help themselves or their family, not just with the luxuries of life, but with the basics—like food and rent.
What makes you happy?
Discovering what brings you joy can be key to living a life of contentment. While many people believe that money would make them happier, simple lifestyle changes and certain healthy habits might make a difference. This being said, everyone derives happiness from different things in life. Although you may feel that winning the lottery or building a lucrative business would bring you joy, you could be surprised. Sometimes simply winning the lottery in the friendships you have or feeling happy in your job can make a significant difference, provided that one’s basic needs are met.
Additionally, maintaining a sense of gratitude for what is already present in your life can also support feelings of happiness. Taking note of what is going well for you or your family, things that are going positively at work, and the things that you have materially and otherwise can all help increase your happiness.
Discussing money and happiness with a counselor
Happiness can be challenging to obtain at times, especially when you’re facing financial concerns. A licensed counselor may be able to help support you in assessing your relationship with money, cultivating fulfilling relationships, and experiencing more personal growth.
Online therapy can be an effective resource despite an individual’s age, financial status, background, or mental health history, and some research shows it can be just as effective as in-office therapy. It can remove barriers to care that are common among those seeking mental health support. These could include cost concerns, travel times, or availability during your busy workweek.
With a smart device and a reliable internet connection, you can connect with a therapist through live chat, phone, or videoconferencing—or a combination of all three modalities. With BetterHelp, you can also write to your therapist at any time via in-app messaging, and they’ll get back to you as soon as they can.
Takeaway
If you’d like to discuss your relationship with money or some other aspect of life, it may help to speak with a licensed online counselor. They may be able to help you evaluate your relationship with money and also discover other areas of life that bring you joy and happiness. Take the first step toward greater happiness and overall well-being and reach out to BetterHelp.
How does money relate to happiness?
The relationship between money and happiness can be complicated. While having money may ease financial stress, it may also reduce happiness in other ways. For example, if you work a demanding job that pays well, but you don’t get much time with your family, you might feel less happy than you would in a lower-paying job.
The research on money and happiness is also conflicting. In 2010, Princeton researchers analyzed survey results from 1,000 people in the U.S. They found that once their annual income reached $75,000, people experienced a happiness plateau: a point when earning more money stopped making them happy.
However, more recent research contradicted this study. In a 2020 study, researchers gathered facts on the daily happiness of 33,391 U.S. adults with a median household income of $85,000. They found that happiness tends to increase as income rises, even beyond the $75,000 income threshold.
In a 2022 analysis, researchers looked at both studies to understand this contradiction. They found that there was an unhappy minority of people whose happiness plateaued as their income increased. However, they also found that, in general, larger incomes are associated with higher life satisfaction.
What is important in life, money or happiness?
In general, people are driven by a desire to be happy, but whether or not money leads to happiness can be subjective. For some people, having money can make it easier to find happiness. Others may find it in other ways, even without having a lot of money.
Do you need money to be happy?
The question “Can money buy happiness?” may not have a clear-cut answer.
While you might not always need money to be happy, money can have real-world implications for emotional well-being. Health, safety, meaningful hobbies, and close relationships may all contribute to higher happiness. Having less money can make it harder to achieve these things. For example, if you’re struggling to afford rent, you may have less time or energy for your loved ones and interests. Money troubles can also cause stress, which may decrease happiness.
That said, wealthy people may not always be happier, and there are many determinants of happiness besides money.
Can money replace happiness?
Having a lot of money is not always the same as being happy. However, money can still affect happiness to somewhat varying degrees. If being financially well off lets someone do more of what they love or strengthen their relationships, it may make them happier.
That said, no two people are the same. There can be unhappy people with a lot of money, just like there can be happy people with less money.
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