Is Happiness & Money Synonymous?

A study from the US found that when one goes from broke to making more money, levels of happiness increases. However, once you reach $75,000, any increase in income after that does not increase levels of happiness. Now, this study was conducted a few years ago, so that figure would have to be adjusted for the rise in inflation since then. However, what it tells you is that there is a threshold at which any increase in income does not yield a higher level of happiness. Going from broke to having some money does, though.

I’ll add, we shouldn’t conflate happiness with pleasure. If you bought a Ferrari tomorrow, you’re going to feel a huge sense of pleasure. However, overtime that pleasure wears off. Owning that Ferrari will not make you a happier person in the sense that you are more comfortable in your own skin, you have higher self esteem, you’re content with life and have the confidence to overcome its challenges etc etc. All of these things constitute what it means to be happy and should not be confused with pleasure.

You might say, “I don’t know about you, but I would be a lot happier if I had millions” — well, you better be prepared to work 90 hour work weeks for the next 20 years, sacrificing family, health and leisure. Is that what you really want, or you just like the idea of having millions?

Now, is this to say you shouldn’t chase money? — yes and no. You should strive to make as much as you possibly can, but not at the expense of your mental and physical health. Work hard, work smart, achieve shit, make money, but don’t think it’s going to make you any less miserable or insecure than what you already are. Money is a means to an end. It can buy you good things that can improve your quality of life, however, if the thing that you are doing to make money is destroying your quality of life simultaneously, then you need to reconsider your strategy.

Another important thing to note — we all have stress around money issues; however, tangible money issues, such as poverty, are different to emotional issues related to money.

Reference —

1. Kahneman D, Deaton A. High income improves evaluation of life but not emotional well-being. PNAS. 2010;107(38):16489–16493. doi:10.1073/pnas.1011492107