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Does Higher Income Lead to Higher Satisfaction?

So, what is money?

Money is a frequently used form of exchange for buying and selling products and services. It is a technique that makes it possible for individuals to exchange products and services more effectively since they are no longer required to barter directly for items.

Why may money bring satisfaction to individuals?

Money can purchase happiness because it gives people access to things and experiences that can improve their happiness and sense of fulfilment in life. Here are some ways that having money might make you happier:

Supplying necessities: Happiness depends on having enough money to cover one's vital expenses, including clothes, housing, and food. It is challenging to have a feeling of security and stability in the absence of these necessities.

Experiences and recreation activities: People may enjoy life by using money to partake in events and leisure pursuits that make them happy and fulfilled. This can apply to leisure activities, sports, cultural events, and travel.

Relationships: By allowing individuals to devote more time with their loved ones and by giving resources for socialising and entertainment, money may help individuals maintain and develop their relationships.

Stress reduction: Financial security and independence from financial anxieties are two ways that money may lessen stress.

Providing access to educational opportunities and personal development programmes is one way that money may encourage personal growth and fulfilment.

What's the false narrative of 'money can buy you happiness'?

Since the relationship between wealth and happiness weakens and sometimes even reverses at a certain point, money does not always buy happiness. Here are some explanations for why having money may not necessarily make you happy:

People often adjust to their new financial circumstances, whether they be favourable or unfavourable. Therefore, the benefits of a financial windfall or rise would not last long, and people might quickly revert to their earlier levels of satisfaction.

Comparisons: People who are wealthy are frequently exposed to those who are considerably wealthier. As a result, one may have a sense of relative deprivation and the notion that their financial status is never satisfactory.

Stress and workload: Having more money may come with more responsibilities and stress, particularly if you have a demanding job or a busy schedule. As a result, there may be less time and energy for things that make people happy, such relationships and leisure pursuits.

Relationship-damaging effect: Money may lead to arguments and strain in relationships, particularly if there are discrepancies in values or spending patterns. The general level of happiness may suffer as a result of this.

Reduced feeling of purpose: If money is not accompanied with a sense of purpose or meaningful employment, it can cause a sense of emptiness or boredom. This is particularly valid for people who leave their careers or retire early.

While, money is significant and can improve happiness, it does not alone determine pleasure. Long-lasting enjoyment is more likely to result from a balanced strategy that takes both material and non-material aspects into account.

Impact of money towards different age groups:

Because of their distinct developmental stages, life experiences, and financial obligations, teens and adults may feel money differently. Money can have the following effects on teenagers:

Financial literacy: Teenagers who understand about budgeting and money management at a young age are more likely to form sound financial practises as they age.

Independence: Having money gives kids the freedom to make their own decisions and a sense of independence.

Contrarily, having money can also lead to materialism, particularly if people are frequently exposed to messages that link happiness to possessing the newest technology or designer clothes.

Teenagers who are having trouble meeting their requirements may experience stress related to money.

Money could have the following effects on adults:

Financial stability: Having money may help individuals maintain their financial stability, which is crucial for their general well-being and happiness.

Money may give folks the resources and opportunities they need to advance their professions and meet their professional objectives.

Adults may experience stress related to money, particularly if they are having trouble meeting their requirements or are having financial troubles.

Relationships: If there are disparities in values or spending patterns, money may have a big influence on relationships.

Depending on a person's developmental stage, life experiences, and financial status, money may have a complicated effect on them. To attain total pleasure and well-being, it is crucial for people to strike a balance between their financial objectives and their non-material requirements, such as relationships, personal development, and a sense of purpose.

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