From a young age I have always been interested in money and shopping, when it comes to buying clothes or even experiences. I was often told the common saying “Money can’t buy happiness,” so I decided to look into tat question to strengthen my understanding on the affect money has on our sense of happiness and fulfillment in life.
So far I have been reading many articles and surveys from large companies that have looked into my topic. The answers all vary but there is one thing that is consistent between the two. Almost every article shows that buying materialistic objects makes us feel less happiness when compared to experiences that can be bought like vacations.
Money is often seen as a large factor when it comes to our happiness because it often allows people to meet their basic needs such as housing, food, and sometimes healthcare depending on the country. (1) Research shows that people with higher incomes generally report slightly higher levels of happiness than those with lower incomes.(1) This is not a result of buying materialistic items like a car or a plane, but due to the relief on those who know they have more financial stability than others. Many that lack financial stability often feel stressed and feel like they are limited to many opportunities which translates to a lower cortisol.(1)
However, many studies have shown that the relationship between money and happiness is very limited due to the lack of surveys. An easier way that would help come to a clearer answer would be for surveys to become worldwide, where people could share their opinions on the relationship between their income and happiness to a certain level (2). As we have learned, the average income globally is $60,000-$75-000 a year; however, those who fall within this average or below are often faced with financial stress. It has been shown that those who make around $95,000 a year feel more relief and satisfied in their daily life(2).
Another factor is how money places and compares people in society. research shows that the connection between income and happiness can become stronger in countries where income inequality is high(3). People may judge their success or satisfaction, often by comparing their income to the people around them(3). Some researchers even argue that people often overestimate how much money affects their happiness. A study done by Princeton University found that while money can improve living conditions, but it does not mean that these people spend more time doing enjoyable activities (4). Wealth does not automatically lead to a happier daily life, it can either benefit or have a negative toll on our lives.(4)
Overall, my research suggests that money does play a role in happiness, especially when it helps people meet their basic every day needs which can reduce financial stress. However, once people reach a certain amount of comfortability, other factors can come into play such as relationships, health, and experiences which often result in long term happiness.
- https://www.cnbc.com/2023/03/28/how-your-salary-affects-happiness.html
- https://www.purdue.edu/hhs/news/2019/02/money-buys-happiness-only-to-certain-a-point/
- https://academic.oup.com/pnasnexus/article/doi/10.1093/pnasnexus/pgac224/6754154
- https://www.princeton.edu/news/2006/06/29/link-between-income-and-happiness-mainly-illusion
One challenge that I faced during this project was finding reliable sources of data that clearly had answers to my question which was the relationship between money and happiness. Many sources had different opinions at is a very opinion due to the lack of clear answers to a deep question. To overcome this challenge, I focused on using reputable sources such as university studies, research articles, and well known organizations. I also took time to read through multiple sources to compare their information to get a better understanding on the answer I was given.
This inquiry changed the way I think about money mainly, and happiness in a way. Before I had researched this topic, I had believed that if I were to have a lot of money, what could money not buy? I thought that it would automatically make me happier and feel fulfilled. However, as time passed I slowly learned that money only improved happiness to a certain point and once basic needs are met, other factors play a larger role in happiness.
This investigation has made me think more clearly about how I want to balance and place my money for my future. Well, earning enough money to live comfortably is important island that focussing on wealth may not always lead to long-term happiness, and the other factors should be focussed on as well. Because of this, I now want to prioritize a crew that I enjoy that allows time for other factors such as relationship, relationships, hobbies, and experiences rather than the highest possible income.
overall this investigation could help others think differently about success and happiness, and hopefully decrease the amount of comparison between money and status. Locally people may realize that building strong relationships with the people around them is important to an equal or even more amount than earning money. Globally understanding that happiness is influenced more than income would help societies focus on other factors such as mental health and the quality of life rather than the content search for finances.
