Money Does Buy Happiness… Imagine that! |
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It’s long been assumed that money doesn’t buy happiness. There was a famous study in the 70s (PDF) that supported this claim. It concluded that as long as your basic needs are met, money doesn’t buy happiness - it’s money relative to the people around you. If you don’t believe the study, what about the anecdotal evidence of lottery winners reporting that they are less happier after winning? When I think about it, some of the happiest people I know aren’t particularly rich, but have good friends, family, and hobbies that they enjoy.
New York Times published an article yesterday saying that maybe everything has changed, money does buy happiness after all. In my opinion, this is the defining statistic:
In the United States, about 90 percent of people in households making at least $250,000 a year called themselves “very happy” in a recent Gallup Poll. In households with income below $30,000, only 42 percent of people gave that answer.
I think you have to look at money as a way to buy various freedoms. If you win the lottery, you might not need a day job, which gives you a lot of freedom. However, you now have cousin Nick asking you to help him out of his credit card problem. You trade one stress for another. If you are a CEO of a big company, you have plenty of money. But then you have to deal with all the responsibility that comes with it. If a friend comes up with great tickets to the big game, you often have to say no and get back to work.
I think it’s very difficult to find that happiness balance. Having money (and not the responsibility that comes with it) seems like a way to reduce those obstacles to a very happy life.
This post deals with:credit card problem, day job, freedom, freedoms, gallup poll, lottery winners, new york times, stress
... and focuses on:Deep Thoughts
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Propeller15 Responses to “Money Does Buy Happiness… Imagine that!”
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May 3rd, 2008 at 3:44 pm
$18k would suck because you can’t pay the bills.
$40k might seem great (until you reach retirement, then see how badly ff you REALLY are).
$250k of income sucks because it is always ‘at risk’ (might lose that cushy job or high-flying business at any time).
… but, $250k in PASSIVE income is just fine
I can assure you, that’s a very ‘happy’ number …
April 20th, 2008 at 4:57 pm
I always thought of “money can’t buy happiness” in the sense that if you can do what you love, it doesn’t compare to making more money at a job you hate.
Obviously if you’re poor, you’re not going to be happy. But I still wouldn’t trade in being a musician for being a CEO.
Also I think this study might turn out differently if taken in a different country; being poor in America doesn’t just mean having no money, it also means having no health care. This isn’t the case in many other first world countries.
April 19th, 2008 at 3:52 pm
I wouldn’t quite say money buys happiness, but certainly the peace of mind from being able to cover your basic needs and then some doesn’t hurt.
Recently, I heard a report similar to this on NPR. What you suggest at the end seems to coincide with their survey that found that on average, the older you get, the happier you are - specifically in advanced age.
I would guess that, aside from a debilitating disease, most people would just plain be happy to still be alive past their 70’s. Not to mention, they don’t normally have to deal with kids (except when they want to, which adds happiness), and get senior discounts. Many of these people of course are retired, and so have money (pension, investment, etc.) but very few responsibilities.
I agree with Brett as well. Optimism is a big deal. At least in my personal life, when I am optimistic, I perform better - which leads to promotion. Most successful people I’ve met are generally optimistic (hard work & smart thinking doesn’t hurt, either). And paying too much attention to the material possession we’re bombarded with every day not only increases pessimism, but by increasing your spending habits, you become less financially sound, which when those credit card bills come in (a requirement for a lavish lifestyle on an average income), happiness tends to depart.
April 19th, 2008 at 9:01 am
That is how I always looked at it. If you have money you don’t have to work(unless you choose to). You can spend your time with your family or whatever else you want to spend your time on.
http://www.stocks-simplified.com
April 17th, 2008 at 8:57 pm
Any study like this makes me wonder about causality. Are people who are naturally happy more likely to be optimistic and successful? Probably. Although, the basic needs theory mentioned by others must also explain part of the gap.
Dave suggested TV and the celebrity culture as causing people to feel poorer. This could also explain some of the increase. I read a book by a Chinese immigrant to the US who said that almost everyone was happy in China - until they started watching TVs. When they started seeing what they were missing, the general contentment dropped in the average person.