Money and Happiness
Most people believe that money equates to happiness, but does it really? It makes sense that people who cannot afford basic needs such as food and housing would be more stressed, and less happy, than those who can afford such necessities. But what about once these needs are met? What happens then to one's level of happiness as financial wealth increases?
As it would turn out research has found that the increase in financial wealth over a certain level does not increase how happy you are, rather happiness is more directly correlated with how your money, and time, is spent. Think back on your life over the past year or two and reflect on what you spent money on that made you most happy? Or what had the most lasting impact on you. It could be small consistent things like going to get a cup of coffee before work every morning, or going out with your friends. It could be making a big purchase of a nice car, or a similarly pricy vacation. Maybe it was a donation to your favorite charity or a cause you feel strongly about. Whatever you think of, write it down, it will be important later.
Generally, people enjoy spending time and money on experiences over things. There are several theories as to why this is but the prevailing idea concerns personal development and fulfillment. It is easier to appreciate an experience because it is fleeting and leaves a lasting impact on you. You are more likely to change as a person if you spent a week traveling abroad than if you bought a new car for instance. It is also found that people get more fulfillment from spending their money on others and not themselves. Childhood aside people oftentimes get the most joy during holidays or birthdays when they give others gifts that are well received than when they receive gifts. Lastly, people tend to have greater net happiness by spending a little money over time for something they can consistently enjoy (such as that daily coffee) than a lot of money for a one time please boost (such as a new jacket) as the one time thing becomes old not that long after when the initial happiness fades.
In the end it is important to consider what makes you happy most and if some things aren’t working, try something new. My recommendations include spending money and time on things that will improve you as a person and give you a greater sense of fulfillment, for instance:
Now look back at your list, compare, reflect, and see what made you the most happy, are there things you can try having read this? Did anything resonate with you? Leave a comment below and tell me what you think!
Most people believe that money equates to happiness, but does it really? It makes sense that people who cannot afford basic needs such as food and housing would be more stressed, and less happy, than those who can afford such necessities. But what about once these needs are met? What happens then to one's level of happiness as financial wealth increases?
As it would turn out research has found that the increase in financial wealth over a certain level does not increase how happy you are, rather happiness is more directly correlated with how your money, and time, is spent. Think back on your life over the past year or two and reflect on what you spent money on that made you most happy? Or what had the most lasting impact on you. It could be small consistent things like going to get a cup of coffee before work every morning, or going out with your friends. It could be making a big purchase of a nice car, or a similarly pricy vacation. Maybe it was a donation to your favorite charity or a cause you feel strongly about. Whatever you think of, write it down, it will be important later.
Generally, people enjoy spending time and money on experiences over things. There are several theories as to why this is but the prevailing idea concerns personal development and fulfillment. It is easier to appreciate an experience because it is fleeting and leaves a lasting impact on you. You are more likely to change as a person if you spent a week traveling abroad than if you bought a new car for instance. It is also found that people get more fulfillment from spending their money on others and not themselves. Childhood aside people oftentimes get the most joy during holidays or birthdays when they give others gifts that are well received than when they receive gifts. Lastly, people tend to have greater net happiness by spending a little money over time for something they can consistently enjoy (such as that daily coffee) than a lot of money for a one time please boost (such as a new jacket) as the one time thing becomes old not that long after when the initial happiness fades.
In the end it is important to consider what makes you happy most and if some things aren’t working, try something new. My recommendations include spending money and time on things that will improve you as a person and give you a greater sense of fulfillment, for instance:
- Buy experiences not things
- Spend money on others not yourself
- A lot of little things > a few big things
Now look back at your list, compare, reflect, and see what made you the most happy, are there things you can try having read this? Did anything resonate with you? Leave a comment below and tell me what you think!
