Philosophers, economists, and even musicians have found it hard to resist the perennial appeal of the question louchely put by many: can money really buy happiness?. For instance, the Notorious B.I.G. proudly claimed in his rap, “Mo Money Mo Problems,” while a more introspective Kanye West concluded, “Having money’s not everything/ Not having it is” in his “Good Life.” These lyrics make a clear point that there is misery in both having too much and little money; however with responsible spending habits, it is possible that money does bring happiness.
The Truth About Money and Happiness:
Money can buy happiness, says social psychologist Elizabeth Dunn, a professor at the University of British Columbia, and coauthor of “Happy Money: The Science of Happier Spending.” According to her interview with CNN’s Dr. Sanjay Gupta, Dunn commented, “Money can absolutely buy happiness.” She went on to add, “If you hear anyone say money can’t buy happiness, tell them to try giving some of it away.”
The Threshold Effect:
A 2010 study found happiness increased with income up to approximately $75,000, after which more income added little to well-being. However, in 2023, a reanalysis and in 2021 another study, determined the effect applied mostly to the least happy individuals, not related to their income. Hedonic adaptation is the concept that, following a positive or negative experience, people return to their baseline level of happiness relatively quickly.
The Science of Happiness and Wealth:
Dunn has noted that while people do experience a temporary boost in happiness with increased income or a windfall such as winning the lottery, this boost does not last forever. “Winning the lottery probably does make you happier,” Dunn said. “and those benefits don’t seem to completely disappear even after a couple of decades.”
How to Make Money Work for Your Happiness:
If you are one of the lucky ones who gets a financial bump, how you spend the money can have a significant impact on how happy you will be. Here are Dunn’s top five pointers on how to maximize joy with what you spend money on:
1.Invest in Experiences, Not Things
Experiences, from vacations to special meals out, bring more lasting happiness than physical products. As Dunn explains, “The joy from buying new things burns off pretty quickly, but experiences provide lasting joy.” So, instead of buying another pair of shoes, why not create some memories and, in the process, lasting happiness?
- Make It a Treat
Fight hedonic adaptation, and make purchases special. Suggests Dunn, “Abstain from things you like. If you love expensive kale smoothies, don’t drink them often.” If you do not constantly indulge in your favorites, you maintain their special value and increase your happiness in general.
- Buy Time
Paying for services that save you time can be one of the mightiest ways to increase happiness. Dunn’s research showed that people report higher feelings of well-being when they outsource unpleasant chores, such as cleaning or yard work. By hiring help for things that you dread, you free up time to spend on activities that bring you joy.
- Pay Now, Enjoy Later
Delayed gratification can enhance your enjoyment. Dunn suggests paying for something in advance and delaying consumption in order to get the feeling of experiencing it for free. Anticipation itself may be a source of happiness, which enhances the eventual enjoyment.
- Give to Others
Spending money on others may enhance personal happiness. Dunn suggests that money should be used to benefit others although giving to charity or to a friend will do. Shifting the perspective from self to others will enhance your well-being and feel better about life.
Conclusion:
Although money might not buy happiness, the way you spend it can make a world of difference. That is, investing in experiences, making purchases special, buying time, delayed gratification, and giving to others turn your wealth into real happiness. Dig deeper into the ways of attaining happiness by listening to the latest episode of the Chasing Life podcast.
