Money and Happiness

Posted by on Apr 4, 2013 in Passion | 0 comments

I’m sure you’ve all heard the common phrase, “money can’t buy happiness.” But have you ever really thought about this statement? Many people I know have the idea the idea that people who are wealthy are so immersed in making money that they are never satisfied and can’t focus on the little things that are supposed to make them happy. Are they right?

Psychologists and economists have studied this question in depth and came up with interesting results. Something that a lot of people fail to notice when thinking about this question is that people who have a lot of money are used to it. You may think that you’d be incredibly happy for the rest of your life if you win the lottery but the truth is that you’ll get used to it really quickly and be just as happy as the next person. Researchers found no strong correlation between money and happiness.

What some studies have found is that $50,000 a year on average is the right amount of money to have in order to be happy. They also found that once you earn more than $75,000, you won’t be able to notice much of a difference regarding your happiness.

However, for those who are unable to meet their basic needs, happiness is at very low level. But for people who are past the poverty threshold, happiness and money are significantly linked.

What actually affects our happiness with money is our attitudes toward it and how we handle it. If you make yourself believe that more money equals more happiness then you’re in for disappointment.

For people that do have money to spend, there are several ways that they could use it to increase their happiness. One way is by donating. This is because the pro social act of helping others will make you feel better about yourself. Another way is by spending more money on experiences instead of purchasing things. Material things will indefinitely become less exciting overtime but experiences after providing happiness in the moment, will provide happiness through memory.

It may be nice for many people if happiness were to come from one single factor, but it doesn’t. Happiness comes from many different factors including the ability to afford a comfortable lifestyle. All in all, having a lot of money doesn’t produce happiness the way some people might think.

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