Can Money Make You Happy?

How you approach your money will determine if you are happy or unhappy

“Money does not define happiness.” We’ve heard this phrase over and over again. But what does it mean?

In today’s world, when everything is driven by money, it is easy to think that the more you have, the happier you will be in life. However, sometimes it doesn’t work out that way.

Money puts you in a particular social position. It establishes who you are within society. People depend on money to live and function in everyday life. We use the money to pay our bills, to pay for services, buy our groceries, entertain ourselves, etc. A certain amount of money IS necessary to sustain our life. However, if you have an abundance of it, can it make you happy and spiritually fulfilled? The answer is: yes and no.

Some people who have achieved financial freedom swear by how it’s made their life better and more fulfilling. Others do not feel that it’s made a difference in their life. There is no straightforward answer to this question, but there is some research that sheds light on this topic.

There is a lot of paradox when it comes to money. On the one hand, research points to citizens being happiest in the wealthiest nations. On the other hand, countries with less money are poorer. But when it comes to an individual choice, what truly makes a person happy is what they do with their money and how they choose to live with it.

Wealth alone is not enough to sustain happiness

We all hear stories now and then how rich and successful people commit suicide. Why is that? These people must have something other than money that was missing in their lives. It could be love, dissatisfaction with career, lack of passion and fulfillment in life, or spiritual connection with self. If they were truly happy, they wouldn’t have taken their lives. On the outside, these people always appear happy and content, while on the inside, they wrestle with their internal conflicts. They feel lonely and detached. They lack meaningful social connections. Their souls are empty. As it turns out, it is often misleading. The happy “fake” smile they put on their face is just their defensive mechanism to hide how crappy they feel inside.

Life with money, but no purpose

Some people live their lives with money but have NO purpose in life. Their lives revolve around money, spending money, and nothing else but that. They are under the illusion that finally, they’ve attained what they always wanted — financial freedom.

While money, by itself, can contribute to overall happiness and life satisfaction, other factors must be present as well to sustain it.

Material possessions come and go; experiences do not

According to research, money can buy people’s happiness, IF you use it wisely. Positive psychologists draw a line between pleasures and comforts. Pleasures are momentary and transient, which means after we adapt to them, they lose their potential to make us happy. For example, if you bought a new product or a gadget, it will make you happy only for a short time. You’ll feel the peak of happiness the moment you buy it, and a few days after; then it will dwindle after that. All of a sudden, you realize: I’m not happy anymore. But picture this: You have money and lots of it and you took your family out on a special vacation or a cruise ship. By doing so, you are investing in your long-term happiness. Why? Because the memories you will acquire from that trip will stay with you for a long-time.

The bottom line: You can use wealth to make you happy if you use it towards improving your lifestyle

Money used to simplify your life, and make it better, will ultimately make you happy. Harvard professor Ashley Whillans found out that people are happier if they use their money to save time on certain things to make their lives more productive.

For example, if you are a business owner with a busy lifestyle, you can hire someone to run errands like grocery shopping or do chores like house cleaning. By doing that, you will create a more simplified stress-free lifestyle, which will allow you to focus more on your job, your interests, your family, etc.

You can have a little bit of money and still be happy

I’m not rich by any means, and in no way will I ever believe that having money alone will make me happy. If I lived with a mindset that material things are the doorway to happiness, I may as well say that I do not live a life. What makes my life rich, happy, and fulfilling are the experiences I create for myself daily by feeding my passions. It is activities I engage in like doing things I love the most and spending precious time with my family. For example, I love gardening, and it’s one of the things that makes me happy. I find that sometimes it’s the little things that matter that brings in happiness.

Another thing that makes me happy is writing. For instance, since I started writing on Medium, my life has become more satisfying than it was before. Of course, I would welcome a little bit more money as I can use it towards improving my business and bettering my lifestyle. But overall, having a lack of it is not the end of the world as I don’t depend on it to make me happy. With that said, if you have some money to spend, think of experiences that will truly make you happy. Maybe you want to spend it with your family, attend an event or concert, watch a movie, or simply catch up with a friend at a coffee shop for a meaningful conversation. Think of ways to spend your money to give you a rich ever-lasting experience.

Human beings are creators of their happiness

With that said, we should dig into ourselves deeper to understand and find the things that make us happy. Life is always changing, and there are always new things to be found. Every day we can discover something new that has a potential to make us happy. It can be a newly acquired hobby or passion, social activity, outdoor leisure, sports, etc.

Money used towards a cause will make you happier

It may also be counterintuitive what Christopher Peterson, professor of psychology at the University of Michigan says, but if you spend money on someone else or invest it in charity, it will make you happier. That feeling of happiness will stay with you for a long time.

So when it comes to money, focus on things that truly matter in your life. Think about all things that make you happy, and if you had more money, how would it make you even happier besides material things that you can buy with it.