top of page

The Age-Old Debate: Does Money Buy Happiness?


Money has long been considered a necessary means of obtaining the basic necessities of life, such as food, clothing, and shelter. However, when it comes to the question of whether money can buy happiness, the answer is not so straightforward. While money can certainly make life easier and more comfortable, it does not necessarily lead to happiness.


Alleviating stress

On the one hand, having enough money can certainly help to alleviate stress and worry about financial matters. When people are financially secure, they are less likely to worry about paying their bills, buying food, or affording the things they need and want. This sense of financial security can be a significant source of happiness and peace of mind.


Emotional states

However, while money can help people feel more secure and comfortable, it is not the same as happiness. It is an emotional state, whereas money is simply a means of exchanging goods and services. The two are related, but they are not synonymous. While having enough money can reduce stress and improve one's quality of life, it does not guarantee happiness. For example, when the creator of Minecraft Markus Persson, sold his gaming company to Microsoft for £2.5bn in 2014, it didn’t give him the huge boost you might expect, as his tweet from August 2015 showed: “Hanging out in Ibiza with a bunch of friends and partying with famous people, able to do whatever I want, and I’ve never felt more isolated.”


One of the reasons for this is that happiness is not just about material wealth. People who are happy tend to have strong social connections, a sense of purpose, and a feeling of fulfilment in their lives. While money can help provide these things to some extent, it is not a substitute for the emotional connection and sense of meaning that comes from relationships and personal growth.


Happiness to an extent

Moreover, the idea that more money equals more happiness is often a fallacy. Many studies have shown that there is a point at which increasing wealth no longer leads to an increase in happiness. This is because once people have enough money to meet their basic needs and wants, additional wealth does not necessarily provide any additional benefits. In fact, having too much money can often lead to problems, such as stress, anxiety, and a sense of isolation.


Findings from a 2010 study of 1,000 Americans conducted by psychologist Daniel Kahneman and economist Angus Deaton, both from Princeton University, concluded that money does make us happier – but only up to a certain point. Self-reported levels of well-being increased with a salary of up to $75,000 (roughly £50,000) a year. But after that, increasing amounts of money had no further effect.


Fulfilment

Another factor to consider is that people often experience hedonic adaptation, which is the tendency for people to quickly become used to new levels of wealth or comfort. As people become accustomed to their new standard of living, they no longer find it to be as fulfilling or enjoyable as they once did. This means that the happiness that people experience from money is often short-lived and may not provide long-term satisfaction.


Individuality

Furthermore, it is important to consider the values and beliefs that people hold. People who value material wealth and consumerism are often more likely to believe that money can buy happiness. However, people who place a greater value on relationships, personal growth, and community are less likely to believe that money can bring happiness. It is also worth noting that different cultures have different values and beliefs about money, and what constitutes happiness, so the relationship between money and happiness is not universal.




The outcome

In conclusion, while money can certainly provide a degree of comfort and security, it does not necessarily lead to happiness. Happiness is an emotional state that is influenced by many factors, including relationships, personal growth, and a sense of purpose. Money can make life easier, but it is not a substitute for the emotional connections and sense of fulfilment that come from other sources. It is important to consider the values and beliefs that people hold when exploring the relationship between money and happiness, and to recognise that while money may play a role, it is not the only factor that determines whether people are happy or not.



Recent Posts

See All

Cash Is King

The evolution of money In 7th century B.C Rome, coins were minted near the temple of the goddess Juno Moneta, which gave us the words 'mint' and 'money'. Money has been a sacred possession for centur

Comments


bottom of page