Summary

Money can alleviate many problems and contribute to happiness by meeting basic needs, improving health, and fostering relationships, but it is not the sole source of happiness and must be balanced with health and relationships.

Abstract

The article delves into the complex relationship between money and happiness, emphasizing that while money alone does not guarantee happiness, its absence can lead to misery. It suggests that money can "buy" happiness insofar as it allows for the fulfillment of basic needs, better health, and stronger relationships. The author, drawing on extensive research and personal experience, argues that a balance between health, relationships, and wealth is crucial for overall happiness. The article also discusses the diminishing returns of wealth, noting that beyond a certain point, additional money has a minimal impact on happiness levels. Ultimately, the author advises that happiness is cultivated through a holistic approach that includes financial stability but does not neglect personal health and meaningful relationships.

Opinions

Money is a tool that can address many of life's problems and contribute to happiness by providing access to healthcare, secure housing, and food.
Health is the foundation of happiness, and while money cannot cure all ailments, it can provide access to resources that promote well-being.
Strong relationships are vital for happiness and can be positively influenced by financial stability, as financial issues are a common cause of relationship strain and divorce.
The pursuit of wealth should not come at the expense of health or relationships, as extreme wealth without happiness is undesirable.
There is a complex relationship between money and happiness, with money having a greater impact on happiness at lower income levels by alleviating poverty-related issues.
The Law of Diminishing Marginal Utility applies to money and happiness, meaning that beyond a certain threshold, additional wealth does not significantly increase happiness.
Happiness is not a commodity that can be purchased but is something that must be cultivated through a balance of health, relationships, and wealth.

Here's How Money Really Can Buy You Happiness

Most people usually have 99 problems, and 98 of them can be solved with more money.

Photo by Priscilla Du Preez 🇨🇦 on Unsplash

A long time ago, in a faraway land, I was raised with enough money to buy most of my needs and none of my wants.

When I immigrated to the United States, I was fascinated by the intricate relationship between money and happiness. I read many philosophers' notes, neuroscience discoveries, and psychology research to learn more about money and happiness. I always believed that money and happiness are closely related.

I dissected the elaborate workings of the human brain and its reaction to monetary gains. I studied internal and external motivations. I learned about the poor, rich, and people living paycheck to paycheck.

After 20 years of not having money, barely having money, having money, and studying, I came to a conclusion that shouldn't surprise anyone.

Money doesn't buy happiness, but lack of money can cause misery.

Money does not create happiness, but it eliminates unhappiness.

I always thought "Money doesn't buy happiness" is the dumbest and most offensive when said to individuals working hard and struggling to pay their bills.

Money absolutely can "buy" you happiness. Being able to afford your basic needs can make you happy. Having the freedom to work less and spend more time with your kids does make you happy. Being able to afford a gym membership makes you healthy and happy. Donating money to worthy causes makes the world a better place and makes you happy.

However, to be 100% happy, you have to balance between three things: health, relationship, and money. Before I talk about these three life buckets, let me say this. Having money doesn't mean all of your problems will vanish, but you will have more resources to address them.

1- Health: You can't be unhealthy and happy.

“The groundwork for all happiness is good health.” — Leigh Hunt

Most people have 99 problems, and 98 of them will be solved with more money.

Let me start by saying that money doesn't heal all diseases or cure all mental health illnesses. But without money, you don't have access to healthcare, a house, or food. All of these will help keep you safe, healthy, and secure.

Money is a tool that allows you the freedom of choice. As economists have repeatedly revealed, "Well-being rises with income at low socioeconomic levels because it alleviates the problems of poverty. People can erase calorie deficits, educate their kids, and go to the doctor — in other words, they can lower their unhappiness." Money makes you healthier, and being healthier is the foundation of happiness.

Let's talk about relationships.

2- Relationships: Healthy relationships impact your happiness and more than money.

“Money can’t buy happiness, but it will certainly get you a better class of memories.” — Ronald Reagan

Harvard scientists conducted the longest study on happiness in history, concluding that healthy relationships matter for happiness, health, and wealth.

It's no secret that money is one of the leading causes of divorce. It has been known for a long time that a significant number of marriages end in divorce because of financial issues. So, if you want a happy marriage, take care of your finances.

"Debt can cause a lot of conflicts in a marriage," says Dr. Regine Muradian. Being in debt can cause you to ignore the things you would like to prioritize in your relationships. New findings from National Debt Relief discovered that 54% of people believe a partner with debt is a reason to consider divorce.

I talked about health and relationships. Let me talk about the wealth and its impact on your happiness.

3- Wealth: your ability to earn, spend, and invest money impacts your happiness the most.

They say that love is more important than money, have you ever tried paying your bills with a hug? — Nishan Panwar

Ignoring the relationship between money and happiness is irresponsible and unfair to yourself and your family.

If there were no relationship between money and happiness, you would be less likely to go to work or struggle to save money. However, I acknowledge that buying a huge house, a new car, and traveling won't make you happy if your health is failing and your relationships are crumbling.

That's because the relationship between money and happiness is more complicated than you can imagine. There is no straight line between money and happiness; money can make you happy, but it is not guaranteed that you will be happier when you have more money.

After all of your needs and wants are met, the impact of money will be diminished. For example, having $10 million in your bank account won't make you two times happier than having $20 million. There is no difference between having 4 or 8 cars; you can only drive one car at a time.

This idea is known in economics as the Law of Diminishing Marginal Utility.

"The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines. Marginal utility is the incremental utility increase resulting from the consumption of one additional unit. "Utility" is an economic term used to represent satisfaction or happiness."

Dan Gilbert, a psychology professor at Harvard University, scientifically proved this.

"Research shows that going from earning less than $20,000 a year to making more than $50,000 makes you twice as likely to be happy, yet the payoff for then surpassing $90,000 is slight." However, the numbers don't reflect the state of our economy now.

Happiness can't be purchased, and it must cultivated.

Money can’t buy happiness but it sure makes misery easier to live with. — Zig Ziglar.

Hold on before jumping in. Being poor doesn’t equate to unhappiness, nor does wealth ensure joy. Happiness isn’t bought; it’s nurtured and cultivated.

Balancing health, relationships, and wealth is the only way to cultivate happiness. What I mean by wealth is your ability to earn money, spend it wisely, and give it generously.

Money plays a significant role in your life; it adds meaning to small moments and allows you to create great experiences for yourself, your family, and your community.

Conclusion and Takeaway: Learn to earn.

If your basic needs are not met, it is hard to maintain your health or your relationship, so always focus on learning to increase your capacity to earn more money.

Yet, never sacrifice your health or relationships in pursuit of wealth. Being immensely affluent but lonely and miserable is a fate to avoid at all costs.

If you had to choose two of the three, which two would you choose? Health, money, or relationships?