money can't buy love or happiness persuasive speech outline

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Money can’t buy love. but happiness maybe.

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Money might not buy love, but a new study suggests that it is more strongly related to happiness than some people think — particularly when people compare their income with someone else’s.

Writing in the journal Psychological Bulletin, researchers describe an association between people’s subjective socioeconomic status — how they perceive their own income, education, and occupation standing in comparison with others — and happiness.

That association, they say, is significantly larger than the connection between people’s objective socioeconomic status — as measured by income and educational attainment — and their level of happiness.

“ There is a conventional wisdom in social science that relationships and experiences are more important than money in producing happiness,” said co-author Michael Kraus , associate professor of organizational behavior at the Yale School of Management. “But we found that when people consider their wealth relative to others, there is a stronger association between money and happiness.”

The study, which was led by Jacinth Tan, an assistant professor of psychology at Singapore Management University, contradicts decades of social science research that shows a weak relationship between money and happiness, particularly in wealthy societies, the authors say.

“ The size of the relationship we observed in our study has policy implications in the sense that lawmakers must acknowledge that the relationship between money and happiness remains consequential and cannot be ignored,” said Kraus. “Policy considerations that help people obtain good jobs and protect people from financial ruin during this pandemic may have an added benefit of improving people’s happiness.”

The new research was motivated by an apparent disparity in previous research that has showed weak links between income and happiness and the idea that many people actively seek out prestigious jobs and higher status, the authors say. Moreover, as inequality has increased in some societies (including the United States), overall happiness has declined. That outcome wouldn’t be expected if wealth and material resources were inconsequential, the researchers say.

This gap between research findings and observation suggests the possibility that objective measures, such as income, do not adequately capture the influence of money on happiness, the researchers said. They wanted to test the idea that happiness is more dependent on what people  think  they have compared with others than how much they  do  have.

For the study, the researchers performed a meta-analysis of 357 different studies that have examined questions related to associations between objective and subjective measures of socioeconomic status and people’s subjective wellbeing — their sense of happiness and life satisfaction. Collectively, those studies involved data from more than 2.3 million participants gathered in publicly available datasets, such as the World Values Survey, as well as in private datasets.

In their analysis, the researchers applied the MacArthur Scale of Subjective Status — a 10-rung ladder in which people indicate their perceived social status — to test the association between comparative resources and happiness. Their findings suggest that that social comparison is an important driver of how much money or material resources will increase happiness.

The researchers also found that the effect of social comparison was stronger in countries, such as Singapore, with high population density. This finding makes sense, the researchers say, since there often is greater competition for resources in places where population density is high.

Tan pointed out that social comparison can lead to unhappiness when a person determines their status compares less favorably to others. She cited a quote attributed to Mark Twain: “Comparison is the death of joy.”

“ Our findings also suggest that improving from past levels of material resources alone is insufficient for increasing happiness,” she said. “Even if people today are earning higher wages or attaining higher educational levels than their parents or compared to 10 years ago, there is going to be limited impact on their happiness if they are not doing at least as well as, if not better than others at the present. In people’s minds, social mobility is not simply the ability to ascend one’s own socioeconomic ladder, but also to ascend the ladder of the broader, collective society.”

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Essay on Can Money Buy Happiness

Students are often asked to write an essay on Can Money Buy Happiness in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Can Money Buy Happiness

Introduction.

Money is essential in life, but can it buy happiness? This question has sparked debates worldwide.

Money and Materialistic Joy

Money can buy materialistic things that bring joy. For example, your favorite video game or a bicycle can make you happy, and you need money for them.

Money and Freedom

Money can provide freedom to explore hobbies, travel, and experience new things, which can lead to happiness.

Limitations of Money

However, money can’t buy love, friendship, health, or peace of mind, which are essential for true happiness.

In conclusion, while money can buy temporary joy, it can’t buy lasting happiness.

250 Words Essay on Can Money Buy Happiness

The age-old question, “Can money buy happiness?” has sparked countless debates among philosophers, economists, and psychologists. While some argue that wealth is a key contributor to happiness, others believe that happiness lies in intangible aspects of life.

The Power of Wealth

Money, undeniably, holds power. It provides the ability to afford basic necessities, luxuries, and experiences. It can help in eliminating stressors like debt and financial instability, which are often associated with unhappiness. From a utilitarian perspective, money can indeed buy happiness as it facilitates access to goods and services that can improve quality of life.

The Limitations of Money

However, the relationship between money and happiness is not linear. Beyond a certain income level, additional wealth does not equate to increased happiness. This is known as the ‘Easterlin Paradox’. Also, an overemphasis on wealth can lead to materialism, which has been linked to decreased well-being and increased mental health issues.

The Role of Intangible Aspects

While money can provide comfort and security, it cannot buy intangible aspects such as love, friendship, health, or peace of mind. These aspects, according to many psychologists, are the true essence of happiness. They provide a sense of belonging, purpose, and contentment that money cannot procure.

In conclusion, money can buy temporary happiness by providing comfort, security, and experiences. However, it falls short in procuring lasting happiness that is often found in intangible aspects of life. Thus, the pursuit of wealth should be balanced with the pursuit of intangible aspects to achieve holistic happiness.

500 Words Essay on Can Money Buy Happiness

The question, “Can money buy happiness?” is a popular one. Many people think that having more money means being happier. But is that really true? Let’s explore this idea in a simple way.

Money and Basic Needs

Firstly, money is important because it helps us meet our basic needs. It allows us to buy food, clothes, and a place to live. Without money, we would struggle to survive. In this way, money can bring a certain level of happiness. It provides comfort and security, which are key to feeling satisfied in life.

Money and Material Possessions

Secondly, money can buy material things. This includes toys, gadgets, cars, or even vacations. These things can make us feel happy for a while. But after some time, the excitement fades. We start to want newer, better things. This is called the “hedonic treadmill.” It means that buying stuff only brings short-term happiness. Over time, we get used to what we have and want more.

Money and Relationships

Thirdly, let’s consider money and relationships. Money can help us do nice things for others. We can buy gifts for friends or donate to those in need. This can make us feel good about ourselves. But, money can’t buy true friendship or love. These are based on trust, understanding, and shared experiences. They can’t be bought with money.

Money and Happiness: The Real Picture

So, can money buy happiness? The answer is not straightforward. Money can buy things that make life more comfortable and enjoyable. But it can’t buy everything. It can’t buy love, good health, time, or peace of mind. These things are often the most important for true happiness.

Research shows that after a certain income level, more money doesn’t equal more happiness. This level is enough to meet basic needs and some wants. Beyond that, more money might not make a big difference in how happy you are.

In conclusion, money can buy some forms of happiness, but not all. It’s important to remember that the best things in life aren’t things. They are experiences, relationships, and good health. These can’t be bought with money. So, while money is important, it’s not the only path to happiness. It’s just one piece of the puzzle.

Remember, happiness comes from within. It’s about being content with what you have, not what you don’t have. It’s about enjoying the simple things in life. And most importantly, it’s about being true to yourself and your values.

That’s it! I hope the essay helped you.

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7 Reasons Why Money Can’t Buy Happiness (with Examples)

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They say that money can’t buy happiness…

…or can it?

A recent study showed that money can buy happiness, but only a certain amount.  We can call this a baseline level of happiness.

The researchers concluded that the ideal income for individuals is $95,000 a year for life satisfaction and $60,000 to $75,000 a year for emotional well-being, with families with children needing more.

What happens after that level of income is reached?

The study went on to conclude that once that threshold is reached, further income is actually associated with reduced happiness.

What this means is that money is only a part of what makes us happy.  If we’re really unhappy to our core inner being, then there are limits to how happy money can make us.

So what are the reasons why money can’t buy happiness…or at least more happiness above that baseline threshold?

First of all, we need to take a step back.

What exactly is happiness anyway?

Is it a car, a house or a big screen TV?  Buying a new car feels great at first.  But months and years later, it’ll just be a car. The bright, shiny, newness eventually wears off and then you’re back to where you started.  Or you’ll want more.

We probably don’t need a dictionary definition of happiness, right?  It’s a feeling.  If someone asks you if you’re happy, you usually can give them an answer right away.  We often use “ happiness ” to describe a range of positive emotions, including joy, pride, contentment, and gratitude.

To me, happiness is contentment.  Content with what you do have in your life.  Not focused on the things that you don’t have. 

True, authentic, genuine happiness is about relationships, self-development and experiences.  Look at the proven ways to increase happiness.  How many of these involve buying material things? 

So let’s take a deeper look at the seven reasons why money can’t buy happiness.

Table of Contents

1. The Hedonic Treadmill.

The hedonic treadmill is the observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.  According to this theory, as a person makes more money, expectations and desires rise in tandem, which results in no permanent gain in happiness.

Think about the last time you made a major purchase.  What happened when you finally got that new car?  How long did your happiness last?  Not very long, right?

You may think that you will really be happy when you buy that shiny new car, but then your neighbor got a nicer one and now you want that one.  This is the power of adaptation. The new wears off quickly and we move on to wanting something else which we think is going to make us happier.

A classic study on this topic is titled Lottery Winners and Accident Victims: Is Happiness Relative?

The researchers wanted to see how people adapted to happiness.  What they found was fascinating.

They interviewed three groups of people: lottery winners, paralyzed accident victims and a control group.

Initially after winning a pile of money, the lottery winners had an increase in happiness.  Makes perfect sense.  And immediately after their accident, the victims were angry.  This also makes sense.

Here’s where it gets interesting: within ONLY two months, both groups had returned back to their average level of happiness.

That’s the hedonic treadmill – we all return to our baseline level of happiness, even when something awesome or tragic happens in our lives.  The 6 other tips below will give you even more insight on why money can’t buy happiness.

2. True Happiness Comes From The Inside . 

Maslow’s Hierarchy of Human Needs represents our human needs, with the ones at the bottom being most necessary, then building upon those. At the base is physiological (food, water, air, sleep), and at the top is self-actualization- realizing your full potential as a person.

Money can help you purchase the physiological and the safety levels of the hierarchy.  But as you move up the layers of the hierarchy, these are our human needs that money simply can’t buy: love/belonging, self-esteem and self-actualization. If you do try to buy them, they’re hollow and meaningless.

The bottom of the hierarchy supplies our external needs, which money can buy, then moves up to the intrinsic needs of the heart, mind and soul.  As you go up the hierarchy, the less money will help you.

3. Money Can’t Buy Authentic Relationships . 

At the end of the day, even wealthy people crave authentic human connections.  Time and time again, we see examples of the rich and famous being miserable.  They are not happy in their love lives, family lives and oftentimes, in their careers.

Think about your closest friends.  The ones you turn to when you’re going through a challenging time.  You might be sad, anxious or depressed.  A friend can make you smile or laugh.  They can turn your mood from gloomy to sunny.  Money doesn’t buy that.

Your relationship with your spouse also has an impact on your happiness.  We probably all have friends who are in joyous, thriving marriages even with lesser money in their bank accounts, while other marriages are filled with arguments, and a lack of love and trust despite millions in the bank.

Having a lot of money doesn’t mean you’ll have a lot of authentic, fulfilling relationships in your life.

4. Be Grateful For What You Do Have

Your attitude towards money counts.  It’s important to develop a healthy relationship with your money.  If you stick to the belief that money directly determines happiness, you can get stuck in a cycle of constantly wanting to accumulate more. More money, more stuff, but never feeling like it’s enough.  That goes back to the hedonic treadmill that we talked about in tip #1.

So how do you develop the right attitude towards money?  First, practice gratitude.  The benefits of gratitude are well documented. A five-minute daily gratitude practice can increase your long-term happiness.  The actual gratitude produced during those five minutes is small, but the emotions of gratitude felt during those five-minutes are enough to trigger a grateful mood.  Focus on what you do have in life, rather than complaining about what you don’t have.  When you focus on things like your relationships, health and overall life, you may realize you’re life is already “rich” enough.

Second, don’t make comparisons to others.  If you see someone else’s fancy car, it’s easy to want the same thing.  Don’t.  That will only put you in the mindset that you don’t have enough, or you aren’t good enough.  It can conjure up feelings of depression and jealousy.  Back to our gratitude tip, this is a good time to focus on what you already have.  Take some time to write handwritten notes and tell other people how awesome they are.  Or give back to your local community.

And finally, as you’ll see on our next tip, spend your time and energy on experiences instead of stuff.  Focus on connecting with your community, your friends and on nature.  Doing so will create memories that last a lifetime.

5. You’re Living In A Material World .

Many of us want to make more money so we can buy more material things.  Cars, bigger homes, stuff for our bigger homes, the latest iPhone or that Gucci handbag.  And while these things may make us happier for a few days, as we talked about in tip #1, this only leads to us wanting more.

What’s important here is how we spend our money.  Science now shows that it’s not about how much money you have, but how you spend it.  In fact, studies show a strong correlation between altruism and happiness. Donating can help you find the meaning in life.

But you don’t have to have large amounts of cash to make a difference.  You can just buy a cup of coffee for the person in line behind you.  Or sponsor a friend that is raising money for a charity.  Even buying a $10 gift card and surprising someone at work will make a difference in how you feel.

Spending money on experiences has been shown to increase happiness as well.  While buying more stuff will just add to the clutter in your life, and can get lost or broken, experiences create memories and connections that can last for a lifetime.  You can travel, learn a new musical instrument, or even take a cooking class.

6. It’s The Little Things In Life That Matter

What brings you joy? What brings a smile to your face? It’s different for each of us.  It may be going for a hike in the woods.  It might be the laugh of a baby or a hug or watching a butterfly.  It could be a friendly hello from the barista or sleeping in. 

Money doesn’t have anything to do with these.  However these are the little things in life that matter.  The things that bring us happiness.  Happiness is found in the smallest things.  The random act of kindness or small gestures.  Non material things.  They say kindness is free.  Sprinkle that stuff everywhere.  So go ahead – flash someone a smile, or compliment someone on their shoes – and see how you feel. 

7. Money Can’t Buy Time

It’s been said that time is our most precious commodity.  However, the #1 excuse why people aren’t doing more things that they love (hiking, spending time with friends, etc) or reaching a goal, such as a fitness goal, is a lack of time.  So what exactly is going on?  Well sometimes we get too caught up in either working hard to save a buck or working hard to earn a buck to realize what really matters – our time. We’re often focused more on getting more money than buying more time.

Research suggests that people with more money do not spend their time in more enjoyable ways on a day-to-day basis.  People with more money tend to spend their time on more stressful activities, such as working and commuting, instead of enjoyable activities.  

Those who are so focused with saving every penny don’t take the time to enjoy life. Rather than getting caught up on making or saving money, focus on making more time for yourself to enjoy doing activities and seeing people who make you happy.

In conclusion, once you have your basic needs met – food, water, shelter, clothing and the feeling of safety, then money won’t buy you happiness. It won’t help you increase your baseline happiness. 

It’s up to you to build meaningful relationships, live in an attitude of gratitude, enjoy the little things in life, and start spending your money on experiences and other people rather than material things.  These are the things that will help you live a more joyous life.

Finally, one proven way to improve your happiness and life satisfaction is to focus on goals that truly matter. To get started, check out this FREE printable worksheet and a step-by-step process that will help you set effective SMART goals .

Scott Colby is an adventure lover who has always created businesses around his passions. Although he has spent over a decade in the fitness industry, helping people create transformations, it was a trip to Guatemala that inspired him to create his latest brand – Say It With Gratitude .

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Persuasive speech: Money can buy happiness and love

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Can Money Buy Happiness Speech

This speech will explore the complex relationship between money and happiness. It will delve into how financial stability can contribute to a sense of security and well-being, while also discussing the limitations of material wealth in achieving true happiness. The speech will reference psychological studies and philosophical perspectives, examining how factors like relationships, fulfillment, and personal values play a significant role in one’s overall happiness. It will also address the concept of diminishing returns with increasing wealth and the importance of finding a balance. At PapersOwl, you’ll also come across free essay samples that pertain to Happiness.

How it works

“Money is not the only answer, but it makes a difference” – Barack Obama.

Although it is injustice to poor people when we say that money can buy happiness. But still money is the basic amenity for each and every individual. As we can clearly see that average number of people are more than satisfied when they have money while comparing to the situation when they don’t have it. According to Blanchflower and Oswald (2011) review of international happiness they stated that money is not the only factor of happiness as there are other factors too like age, gender, education, marital status, diet, other personal characteristics, region characteristics, country characteristics.

But on the top of that as stated by Neal M Ashkanasy (2011) review Blanchflower and Oswald are saying that subjective happiness remains constant in a developed country. And from the developed county it is clearly stated that the country is economically strong and stable. So this statement of Blanchflower and Oswald contradicts their own findings that money can’t buy happiness. In this paper I will be arguing about the fact that even though it is against our cultural or moral ethics of believing money as the factor of happiness in one’s life but still people having money don’t seem to be crestfallen. On the other hand people who don’t have struggle for their life too.

• 1 Money for Amenities
• 2 Money for Objective Happiness
• 3 Money for Ill-Use
• 4 Conclusion

Money for Amenities

After studying the article of Peter M. Ruberton (2016) it is clearly evident that the amount of money available in your bank account is directly proportional to the quality of life and greater the satisfaction in life more joyful and happy your life would be. As each and every individual in the society require food, shelter, clothing. Life without any one of them would be miserable as hell. Money here is considered for the basic amenities not for the luxurious lifestyle. The ratio is same if the amount of money in someone’s life is increased then the demands will be more high. Resulting in more happiness. Buying a new phone or a new car will bring a happy feeling in ones life. Apart from this high ends requirement if one is not able to afford to send his children to school, buy clothes or food. This makes a person not only sad but his life becomes depressing by knowing that he is not capable to provide the life like other children because of the lack of money in his life. It’s not always about being happy or sad with or without money but it is also about how life can change from zero to hero by having the most powerful thing in this world which in known as money. As the whole world is running after money at some point of life.

Money for Objective Happiness

Each and every penny matters and it can change anyone’s life any day especially in this 21st century where money speaks louder than any other thing in this world. According to a recent study by an economist David Clingingsmith at Weatherhead School of Management at Case Western University that negative feelings or sadness depends upon the amount of money people have in their life. Negative feelings increases with the decrease in the bank balance of an individual. Earlier bank balance was not the factor for these feelings but now with the increase in industrialization and urbanization money has become the most important and crucial factor in one’s life.

According to the science also many researches have demonstrated that the level of stress and depression is so less with the higher income of an individual. Approximately $70,000 gross income results in higher level of objective happiness on an average (John Rampton,2018).

There was another survey by the Princeton University that people having gross income more than $75,000 will be satisfied in their lives as compared to the people who have less than this (p. 2).

Money can reduce poverty and scarcity in the society when it is spend in a good deed as a generosity for the poor people by the rich ones. That is the ultimate happiness and desire for the pauper.

Money for Ill-Use

Many people think that money is just a medium for luxurious lifestyle but it cannot provide us happiness in a longer term. It is true that it is used for having bed of roses but this point is use when a person is having the money in abundance. But ultimately it is providing happiness only. Apart from this if we look in a broader perspective it should be included as the basic utility apart from food, shelter and clothing. As all the three of them are interconnected but the root is money for them.

Money or happiness should not be confused with the greed. Although this thing cannot be ignored that if this feeling comes inside someone then it will bring out bad intentions of stealing and robbery. But it differs from person to person and their upbringing. So the thing here is money do provide happiness but this greed factor depends upon the psychology of the person. And that is a different area to talk about.

We have noticed people using money for making their work done from others. But the person who is doing the work and when he will get paid for his hard work that thing will make him happy. So, at the end it’s the money that will make a person happy. Otherwise people won’t be working for anyone else if they will not get paid for their work. This thing will bring disappointment and sadness in people’s life.

As every coin has two sides. So, similarly this topic also brings two arguments with average number of people saying it brings happiness while the other disagreeing with the narrative. Money provides the basic amenity of life. Not only the amenities but also making their loved ones happy by providing them presents makes a person joyful. Happiness itself is a vast topic to talk about money here is just the medium which is helping to enable it. One can’t associate the entire happiness with a single word money. But this can also be not denied that money played a vital role in bringing happiness in ones life. In truth, this generation is grown in the era where happiness is associated with the materialistic things which is possible when you have the money in your hand.

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Money can't buy happiness, a neuroscientist explains why

We all need enough funds to cover our basic needs, but beyond that the connection between wealth and wellness is less clear.

Dean Burnett

"Money can’t buy you happiness" is either a widely accepted insight or a tired cliché. Is it right , though? Scientifically speaking, the answer is… mixed.

A recent study carried out at the University of Bath has once again looked at the relationship between income and happiness .

It seems that, up to a point and within a specific set of circumstances, money can buy happiness. But beyond that, the relationship between money and happiness becomes much looser and uncertain.

What makes us happy?

At the most immediate and fundamental levels, the things that make us happy, or at least the provoke a positive, reward response in our brains, are those that satisfy our basic biological needs. Put simply, we humans, living organisms, need many things to ensure our survival, such as food, water, air, sleep, and security. Our brain recognises these things as being ‘biologically significant’, so if we obtain them, we experience a sense of reward.

Because the human brain can make intuitive and abstract leaps, it can easily recognise that receiving money means we can now more easily obtain food/water/shelter etc. This, as a study carried out by the Wellcome Trust in 2007 found, can be both rewarding and motivational , two things that could fall under the umbrella of happiness.

However, this doesn’t mean ‘more money’ automatically means ‘more happiness’. Money may be recognised by our brains as biologically significant, but there’s an upper limit on how rewarding even biologically significant things can be. For example, eating food can often be pleasurable, but at some point you’ll be sated, after which point eating more causes actual discomfort. Same with drinking. Even things like shelter and security; build too many barriers around yourself and you can feel isolated and oppressed.

There’s also the phenomenon of habituation, where the fundamental parts of our brains learn to not react to things that occur predictably and reliably. As evidenced in a 2011 study carried out by Dr Ruth Krebbs at Ghent University, this is why things that are novel, as in surprising and unexpected, are often more rewarding than familiar things .

In many cases, the same thing happens with money. Receiving your regular pay is reassuring, but receiving unexpected money, even if it’s much less, often makes you much happier.

Also, when we actively and tangibly need it for our survival, obtaining money is very rewarding. But when we go beyond that point, when we’re ‘financially secure’ as they say, money can still be rewarding, but it’s power to make you happy is significantly reduced , a study carried out at San Francisco State University found. More psychological, experience-based stimuli (e.g. travelling, forging new relationships, helping others etc.) have a greater ability to make you happy.

Granted, in the modern world you usually need money to do all those things too, but this ultimately means money’s link to happiness is more indirect, as a means to an end, rather than directly rewarding in its own right.

Is there a threshold amount of money that can make us happy?

That there’s a certain cut-off amount of money where it stops making people has a lot of implications, particularly in the present day. With much talk of wage stagnation, rising prices, and trials of universal basic income becoming increasingly common, the question of how much money people need to be happy is an increasingly salient one.

Unfortunately, there can be no easy answer, at least not one that applies to all people equally, because the factors that determine how much money is ‘enough’ for security and happiness are highly subjective, and vary considerably from person to person.

Some people feel they’d be happy for life with surprisingly modest sums, others don’t think they’d ever feel they had ‘enough’ money. Studies carried out by researchers at the University of Bath have also found that these significant variations are even more apparent when you compare people from different cultures , suggesting the link between money and happiness is at least as much learned as it is ‘innate’.

But even within the same capitalist culture, people’s ideas about financial security can differ drastically, with people who have ample money sometimes being much less happy than those with far less money because they have more worries about.

Can too much money make us unhappy?

This introduces another factor; money can make you unhappy . Or reduce happiness in other ways. Studies have shown that being paid to do something you enjoy can make you less motivated to do it, suggesting it actively reduces potential happiness. This would explain why people are often reluctant to turn a hobby into a job, or actively regret doing so.

Also, in our modern world, money is not static. If we have more money than we strictly need, we don’t hoard a big pile of gold coins in our spare room like modern-day dragons. Money is fluid, often intangible, and typically ends up being tied up with things like investments, stocks, properties, savings accounts, and more.

All these things are subject to the whims of politico-economical factors and more, meaning the person whose money it is has less control over it and less certainty than if they’d gone for the ‘big pile of gold’ option. Loss of control and uncertainty are two reliable sources of stress and unhappiness for the human brain.

Ultimately, rather than “money can’t buy you happiness”, it might be better to say “money can buy you safety and security”, and these things make it easier for us to be happy. But there’s no direct one-to-one relation between money and happiness, and how it affects us ultimately depends on who we are and how we’ve been raised.

Read more about happiness:

• Is waving back at a stranger on a bridge a sign of happiness?
• National happiness mapped over the last 200 years
• Why does chocolate make us happy?
• Could being happier help you fight infectious disease?

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Can Money Really Buy Happiness?

Money and happiness are related—but not in the way you think..

Updated November 10, 2023 | Reviewed by Chloe Williams

• More money is linked to increased happiness, some research shows.
• People who won the lottery have greater life satisfaction, even years later.
• Wealth is not associated with happiness globally; non-material things are more likely to predict wellbeing.
• Money, in and of itself, cannot buy happiness, but it can provide a means to the things we value in life.

Money is a big part of our lives, our identities, and perhaps our well-being. Sometimes, it can feel like your happiness hinges on how much cash is in your bank account. Have you ever thought to yourself, “If only I could increase my salary by 12 percent, I’d feel better”? How about, “I wish I had an inheritance. How easier life would be!” I don’t blame you — I’ve had the same thoughts many times.

But what does psychological research say about the age-old question: Can money really buy happiness? Let’s take a brutally honest exploration of how money and happiness are (and aren’t) related. (Spoiler alert: I’ve got bad news, good news, and lots of caveats.)

Higher earners are generally happier

Over 10 years ago, a study based on Gallup Poll data on 1,000 people made a big headline in the news. It found that people with higher incomes report being happier... but only up to an annual income of $75,000 (equivalent to about $90,000 today). After this point, a high emotional well-being wasn’t directly correlated to more money. This seemed to show that once a persons’ basic (and some “advanced”) needs are comfortably met, more money isn’t necessary for well-being.

But a new 2021 study of over one million participants found that there’s no such thing as an inflection point where more money doesn’t equal more happiness, at least not up to an annual salary of $500,000. In this study, participants’ well-being was measured in more detail. Instead of being asked to remember how well they felt in the past week, month, or year, they were asked how they felt right now in the moment. And based on this real-time assessment, very high earners were feeling great.

Similarly, a Swedish study on lottery winners found that even after years, people who won the lottery had greater life satisfaction, mental health, and were more prepared to face misfortune like divorce , illness, and being alone than regular folks who didn’t win the lottery. It’s almost as if having a pile of money made those things less difficult to cope with for the winners.

Evaluative vs. experienced well-being

At this point, it's important to suss out what researchers actually mean by "happiness." There are two major types of well-being psychologists measure: evaluative and experienced. Evaluative well-being refers to your answer to, “How do you think your life is going?” It’s what you think about your life. Experienced well-being, however, is your answer to, “What emotions are you feeling from day to day, and in what proportions?” It is your actual experience of positive and negative emotions.

In both of these studies — the one that found the happiness curve to flatten after $75,000 and the one that didn't — the researchers were focusing on experienced well-being. That means there's a disagreement in the research about whether day-to-day experiences of positive emotions really increase with higher and higher incomes, without limit. Which study is more accurate? Well, the 2021 study surveyed many more people, so it has the advantage of being more representative. However, there is a big caveat...

Material wealth is not associated with happiness everywhere in the world

If you’re not a very high earner, you may be feeling a bit irritated right now. How unfair that the rest of us can’t even comfort ourselves with the idea that millionaires must be sad in their giant mansions!

But not so fast.

Yes, in the large million-person study, experienced well-being (aka, happiness) did continually increase with higher income. But this study only included people in the United States. It wouldn't be a stretch to say that our culture is quite materialistic, more so than other countries, and income level plays a huge role in our lifestyle.

Another study of Mayan people in a poor, rural region of Yucatan, Mexico, did not find the level of wealth to be related to happiness, which the participants had high levels of overall. Separately, a Gallup World Poll study of people from many countries and cultures also found that, although higher income was associated with higher life evaluation, it was non-material things that predicted experienced well-being (e.g., learning, autonomy, respect, social support).

Earned wealth generates more happiness than inherited wealth

More good news: For those of us with really big dreams of “making it” and striking it rich through talent and hard work, know that the actual process of reaching your dream will not only bring you cash but also happiness. A study of ultra-rich millionaires (net worth of at least $8,000,000) found that those who earned their wealth through work and effort got more of a happiness boost from their money than those who inherited it. So keep dreaming big and reaching for your entrepreneurial goals … as long as you’re not sacrificing your actual well-being in the pursuit.

There are different types of happiness, and wealth is better for some than others

We’ve been talking about “happiness” as if it’s one big thing. But happiness actually has many different components and flavors. Think about all the positive emotions you’ve felt — can we break them down into more specifics? How about:

• Contentment
• Gratefulness

...and that's just a short list.

It turns out that wealth may be associated with some of these categories of “happiness,” specifically self-focused positive emotions such as pride and contentment, whereas less wealthy people have more other-focused positive emotions like love and compassion.

In fact, in the Swedish lottery winners study, people’s feelings about their social well-being (with friends, family, neighbors, and society) were no different between lottery winners and regular people.

Money is a means to the things we value, not happiness itself

One major difference between lottery winners and non-winners, it turns out, is that lottery winners have more spare time. This is the thing that really makes me envious , and I would hypothesize that this is the main reason why lottery winners are more satisfied with their life.

Consider this simply: If we had the financial security to spend time on things we enjoy and value, instead of feeling pressured to generate income all the time, why wouldn’t we be happier?

This is good news. It’s a reminder that money, in and of itself, cannot literally buy happiness. It can buy time and peace of mind. It can buy security and aesthetic experiences, and the ability to be generous to your family and friends. It makes room for other things that are important in life.

In fact, the researchers in that lottery winner study used statistical approaches to benchmark how much happiness winning $100,000 brings in the short-term (less than one year) and long-term (more than five years) compared to other major life events. For better or worse, getting married and having a baby each give a bigger short-term happiness boost than winning money, but in the long run, all three of these events have the same impact.

What does this mean? We make of our wealth and our life what we will. This is especially true for the vast majority of the world made up of people struggling to meet basic needs and to rise out of insecurity. We’ve learned that being rich can boost your life satisfaction and make it easier to have positive emotions, so it’s certainly worth your effort to set goals, work hard, and move towards financial health.

But getting rich is not the only way to be happy. You can still earn health, compassion, community, love, pride, connectedness, and so much more, even if you don’t have a lot of zeros in your bank account. After all, the original definition of “wealth” referred to a person’s holistic wellness in life, which means we all have the potential to be wealthy... in body, mind, and soul.

Kahneman, D., & Deaton, A.. High income improves evaluation of life but not emotional well-being. . Proceedings of the national academy of sciences. 2010.

Killingsworth, M. A. . Experienced well-being rises with income, even above $75,000 per year .. Proceedings of the National Academy of Sciences. 2021.

Lindqvist, E., Östling, R., & Cesarini, D. . Long-run effects of lottery wealth on psychological well-being. . The Review of Economic Studies. 2020.

Guardiola, J., González‐Gómez, F., García‐Rubio, M. A., & Lendechy‐Grajales, Á.. Does higher income equal higher levels of happiness in every society? The case of the Mayan people. . International Journal of Social Welfare. 2013.

Diener, E., Ng, W., Harter, J., & Arora, R. . Wealth and happiness across the world: material prosperity predicts life evaluation, whereas psychosocial prosperity predicts positive feeling. . Journal of personality and social psychology. 2010.

Donnelly, G. E., Zheng, T., Haisley, E., & Norton, M. I.. The amount and source of millionaires’ wealth (moderately) predict their happiness . . Personality and Social Psychology Bulletin. 2018.

Piff, P. K., & Moskowitz, J. P. . Wealth, poverty, and happiness: Social class is differentially associated with positive emotions.. Emotion. 2018.

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More Proof That Money Can Buy Happiness (or a Life with Less Stress)

When we wonder whether money can buy happiness, we may consider the luxuries it provides, like expensive dinners and lavish vacations. But cash is key in another important way: It helps people avoid many of the day-to-day hassles that cause stress, new research shows.

Money can provide calm and control, allowing us to buy our way out of unforeseen bumps in the road, whether it’s a small nuisance, like dodging a rainstorm by ordering up an Uber, or a bigger worry, like handling an unexpected hospital bill, says Harvard Business School professor Jon Jachimowicz.

“If we only focus on the happiness that money can bring, I think we are missing something,” says Jachimowicz, an assistant professor of business administration in the Organizational Behavior Unit at HBS. “We also need to think about all of the worries that it can free us from.”

The idea that money can reduce stress in everyday life and make people happier impacts not only the poor, but also more affluent Americans living at the edge of their means in a bumpy economy. Indeed, in 2019, one in every four Americans faced financial scarcity, according to the Board of Governors of the Federal Reserve System. The findings are particularly important now, as inflation eats into the ability of many Americans to afford basic necessities like food and gas, and COVID-19 continues to disrupt the job market.

Buying less stress

The inspiration for researching how money alleviates hardships came from advice that Jachimowicz’s father gave him. After years of living as a struggling graduate student, Jachimowicz received his appointment at HBS and the financial stability that came with it.

“My father said to me, ‘You are going to have to learn how to spend money to fix problems.’” The idea stuck with Jachimowicz, causing him to think differently about even the everyday misfortunes that we all face.

To test the relationship between cash and life satisfaction, Jachimowicz and his colleagues from the University of Southern California, Groningen University, and Columbia Business School conducted a series of experiments, which are outlined in a forthcoming paper in the journal Social Psychological and Personality Science , The Sharp Spikes of Poverty: Financial Scarcity Is Related to Higher Levels of Distress Intensity in Daily Life .

Higher income amounts to lower stress

In one study, 522 participants kept a diary for 30 days, tracking daily events and their emotional responses to them. Participants’ incomes in the previous year ranged from less than $10,000 to $150,000 or more. They found:

• Money reduces intense stress: There was no significant difference in how often the participants experienced distressing events—no matter their income, they recorded a similar number of daily frustrations. But those with higher incomes experienced less negative intensity from those events.
• More money brings greater control : Those with higher incomes felt they had more control over negative events and that control reduced their stress. People with ample incomes felt more agency to deal with whatever hassles may arise.
• Higher incomes lead to higher life satisfaction: People with higher incomes were generally more satisfied with their lives.

“It’s not that rich people don’t have problems,” Jachimowicz says, “but having money allows you to fix problems and resolve them more quickly.”

Why cash matters

In another study, researchers presented about 400 participants with daily dilemmas, like finding time to cook meals, getting around in an area with poor public transportation, or working from home among children in tight spaces. They then asked how participants would solve the problem, either using cash to resolve it, or asking friends and family for assistance. The results showed:

• People lean on family and friends regardless of income: Jachimowicz and his colleagues found that there was no difference in how often people suggested turning to friends and family for help—for example, by asking a friend for a ride or asking a family member to help with childcare or dinner.
• Cash is the answer for people with money: The higher a person’s income, however, the more likely they were to suggest money as a solution to a hassle, for example, by calling an Uber or ordering takeout.

While such results might be expected, Jachimowicz says, people may not consider the extent to which the daily hassles we all face create more stress for cash-strapped individuals—or the way a lack of cash may tax social relationships if people are always asking family and friends for help, rather than using their own money to solve a problem.

“The question is, when problems come your way, to what extent do you feel like you can deal with them, that you can walk through life and know everything is going to be OK,” Jachimowicz says.

Breaking the ‘shame spiral’

In another recent paper , Jachimowicz and colleagues found that people experiencing financial difficulties experience shame, which leads them to avoid dealing with their problems and often makes them worse. Such “shame spirals” stem from a perception that people are to blame for their own lack of money, rather than external environmental and societal factors, the research team says.

“We have normalized this idea that when you are poor, it’s your fault and so you should be ashamed of it,” Jachimowicz says. “At the same time, we’ve structured society in a way that makes it really hard on people who are poor.”

For example, Jachimowicz says, public transportation is often inaccessible and expensive, which affects people who can’t afford cars, and tardy policies at work often penalize people on the lowest end of the pay scale. Changing those deeply-engrained structures—and the way many of us think about financial difficulties—is crucial.

After all, society as a whole may feel the ripple effects of the financial hardships some people face, since financial strain is linked with lower job performance, problems with long-term decision-making, and difficulty with meaningful relationships, the research says. Ultimately, Jachimowicz hopes his work can prompt thinking about systemic change.

“People who are poor should feel like they have some control over their lives, too. Why is that a luxury we only afford to rich people?” Jachimowicz says. “We have to structure organizations and institutions to empower everyone.”

[Image: iStockphoto/mihtiander]

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Home — Essay Samples — Literature — A Hunger Artist — Money Can’t Buy Happiness: Analysis Of The Examples From Literature

Money Can't Buy Happiness: Analysis of The Examples from Literature

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