If you’re struggling financially, does money make you happy? Money may bring a momentary feeling of contentment, but it doesn’t lead to a life of endless happiness. It can make you miserable. In contrast, the opposite is true of happiness. In a recent study, women in Zambia who received regular cash transfers reported higher emotional well-being and higher satisfaction with their health. While this may not sound so profound, it is important to consider that money does not always make you happy.
While money may not necessarily make us happy, it can help us deal with other people’s problems. Money provides the means to pay for the basics we all need, such as food and shelter. Since time is the most valuable resource, money can sometimes substitute for low-quality time.
Another study has shown that income is correlated with happiness. By making more money, you can improve your happiness levels. Asking for raises at work or picking up side hustles are examples of earning more money. Investing or passive income are also good options for making more money.
Another study by Michigan State University revealed that people were happier when spending their money on experiences rather than material objects. This was large because experiences are more difficult to compare to material objects. However, memories of the experiences are the ones that last the longest. Ultimately, spending money on experiences is the best way to boost your happiness levels.
Another study found that people with higher incomes reported being happier long-term. Their happiness levels increased over time, whereas the United States did not. However, people with more money are happier when they share it with others. It may even be the way to reduce violence in poorer countries. It may be as simple as redistributing wealth between citizens. It’s all in the mindset. So, consider investing in a high-end stock next time you’re struggling with finances.
A recent study by Nobel Laureate Daniel Kahneman and Angus Deaton found that income can make you happier. However, previous studies had shown that the effect of income on happiness was not permanent and only lasted up to a certain level. Therefore, you might want to save some money to be happier and live longer. This may sound counter-intuitive, but it is a fact. Consider starting with small amounts of money and building up from there if you’re thinking about investing.