That’s the subject of my most recent post over at Money Talks News. Here’s what I think: Money doesn’t buy happiness per se, but it certainly positions you for contentment. Just ask anyone who can’t pay his bills.
“Think money can’t buy happiness? Think again” doesn’t suggest that money is the answer to all problems. As noted in the piece, I’ve been well-fed and gainfully employed and still incredibly unhappy. (Hint: That was before my divorce.)
But it’s silly to think that empty cupboards, disconnected utilities and eviction notices don’t have an impact on happiness. Money can buy a certain degree of security.
That said, researchers point to data suggesting that:
- There seems to be a point of diminishing returns when it comes to salary. (The magic number is $75k per year; see the article for an explanation of why.)
- We fare better, happiness-wise, when we give some of our money away.
I’ve long been a champion of charitable giving, whether that’s buying a meal for someone who’s down and out or donating to favorite causes. Giving even small amounts can have huge impact; for example, Feeding America can turn one dollar into the ingredients for six meals. (That’s why I pick up coins all year long.)
I’d be interested in your feedback on the Money Talks News piece linked above, or to these two that I also posted there recently:
“Fighting over the thermostat in your house? Here’s how to win” (flexibility is essential, and long-handles don’t hurt, either)
“Almost $7 billion spent on Halloween? That’s scary!” (a little late, true, but it could give you some ideas for next year)
Related reading:
I have been debt free for 18 years and would never want to “owe” anyone anything again! Having no debt has brought me happiness and freedom too! Great article Donna!
Agreed! The only time I was in debt was for my divorce lawyer. (Totally worth it, by the way.) It bothered me to carry a credit card balance and I hope never to have to do that again.
Thanks for reading, and for leaving a comment.
I have to question the $75,000 per year. I think that would depend on where you lived because the cost of living can vary greatly from one region to another, urban to suburban to rural. Where I live (Southeast rural)that’s an awfully good income. Where my sister lives (Silicon Valley), not so good. I myself have never made near that much annually yet I live a comfortable middle class lifestyle.
Also inflation! That number has been around for a few years and must be higher now.
Money absolutely can buy happiness. No, it won’t help you be happy during a divorce, but it can help you remain secure after the divorce. No, it can’t buy health, but it can buy doctor’s care and health insurance (well, at least pre-Obamacare). It can’t buy spiritual contentment but it can allow you to give to charities you want to support. I know the old saying about money being the root of all evil but I would say that lack of money is more the cause of evil than the other way. My husband and I went through many years where we didn’t have an extra dollar to spare. Now we are much more financially secure and I love the sense of peace that brings. No more laying awake at night worrying about how to pay the bills. It’s a beautiful feeling!
The saying, often misquoted that “money is the root of all evil” is NOT correct. The saying (it is in the Bible) is “the love of money is the root of all evil.” These are two very different concepts.
I don’t think money buys happiness, but it can be used towards it. Being able to afford many things (not fancy stuff, regular things), being able to travel, not losing sleep over debt, all these make for more relaxed and maybe happier people 😉
Pretty much what I said in the piece. How you spend has a lot to do with it.
I have been both rich and poor in my life, and I can honestly say that when I was married to a successful man, I was unhappy. We had to live our “image” constantly. More was never enough.
When he dumped me for a trophy wife, I and the dog sat in our tiny rental house. I looked at her and said, “Well, Sam, we can either sit here and feel sorry for ourselves, or we can get up and make a life.” I chose to get up. And that has made all the difference…
Yes. That. Thanks for sharing your story.
I seem to recall in one of your well written articles a while back that you are thrifty so you can spend in ways YOU chose…or something to that effect. That thought has stuck with me and makes plenty of sense. My thought is that money doesn’t buy happiness but it can sure provide “peace of mind”…
That’s my frugal mantra: I save where I can so I can spend where I want. Thus far it’s worked quite well for me.
I don’t think money can buy happiness per se, thats something you have to chose to do each day. You have to chose to be happy. Money however can provide a sense of security, well being and provide some “amenities” that might add to your happiness. Its certainly easier being happy when you have a roof over your head than when you are living in the streets.
Hi Donna – Miss me? Haven’t been able to keep up with you, as I have no Web access during the day at work. Self-imposed: I can’t be accused of spending time on the Web when the Internet connection to my computer is disabled (this didn’t happen to the people who are on it from 9-5 but are in the “inner circle”).
A recent financial downturn (nothing permanent or unbearable) taught me something new over a series of weeks of trying to go without or go with less – The 59 cent bagel at the supermarket is cheaper and “okay”, but I enjoy the $1.10 bagel at my favorite shop so much more.
And that, Charlie Brown, is what happiness is all about.