Does Money Bring Happiness?


As an individual I personally don’t think that money is the absolute key to happiness. There are much more important things in life, things like family, friends, good health and so on and I would never sacrifice any of these more important things just to become rich.

Having said this however, life also isn’t much fun when you seem to just constantly be scraping by, and every new bill brings with it yet more stress and pressure. An interesting new infographic from SunLife based on recent research (see below) suggests that it may not just be the size of your bank balance that brings happiness. The research instead suggests that it might have more to do with the activities and the financial plans of the people that have more cash to spare each month, which in turn brings an increased quality of life and a more secure outlook for both their financial future and the security of the assets which they own today. Have a look at the infographic and see if you agree with the findings.

The cost of happiness in the UK today-infographic

We can see then that having that little bit of extra cash to spare each month can help us to plan for the future, which may bring a certain peace of mind along with it. The same can be said for having adequate insurance in place so that we don’t have to worry so much if things were to go wrong in some way during the here and now.

As I said earlier though, I personally feel that true happiness is about much more than just having a large bank balance. Sure, having a decent amount of spare cash can certainly help to relieve stress and pressure, but when we see so many rich and famous people out there who are obviously quite unhappy in their lives even though they have an almost unlimited supply of cash, it is clear that there is much more involved here than just the size of your bank balance.

2 Responses to Does Money Bring Happiness?

  1. The DeLeon says:

    I agree that there is a balance in having more money and having more happiness. Obviously one way of getting more money is working every waking hour through side-hustles, full time jobs and multiple part-time jobs. This may lead to a great amount of extra cash at the end of the month, but for most will probably lead to being unhappy since there is no outside enjoyment or time for adventure.

    In the United States there was a study done to find the salary that leads to the most happiness. What the study found is that after $70,000 household incomes, it does not generate much more happiness. The cause being, all the bills are paid and people can save money.

    • SavvyJames says:

      The results of the study you referenced were generally incorrectly understood. One of the things that was being reported when this study first appeared was that, “money does not buy happiness after $75,000.” If you read the Princeton study or review the analysis by Doug Short – vice president of research at investment group Advisor Perspectives – a more accurate reading is that individual’s emotional well-being (their day-to-day happiness) doesn’t get any better for the typical American household after earning $75,000 annually – slightly lower or higher depending on exactly where you live. However, what Kahneman and Deaton call life evaluation – how one feels about their life and accomplishments – can continue to rise with higher income and education levels.

      My own take is that happiness, or life evaluation, does continue to increase with income levels, in large part because having money often equates to having more and better choices. And one thing I know for sure, I haven’t gotten any less happy as my income, and retirement portfolio, have steadily increased.

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