How to Buy Happiness

Many people believe that if they have more money, they will live a happier, healthier, and more fulfilling life. But is that true? It depends…

It’s Complicated

Money and happiness are certainly intertwined, but the relationship is complex. Once people’s basic needs are met, and they reach a certain level of comfort and security, additional income has diminishing returns in terms of happiness.

To complicate matters further, happiness is an inherently subjective state and what allows happiness to flourish differs from person to person. While some find joy in collecting possessions, others are happiest when they are traveling, learning, or spending time with loved ones.

Happiness Inhibiting Habits

The way we perceive material wealth can enhance, or become a barrier to our happiness. For instance, working endlessly in an attempt to achieve a desired level of wealth may result in neglecting one’s physical health, relationships, or leisure activities, which are all important factors for life satisfaction.

People can also fall into the habit of, consciously or not, putting off those things that bring them joy in order to climb the ladder.

“When I get a promotion, I’ll have time to ________.”

“Once I’ve fully funded my children’s education, I’ll ________.”

The problem is, for many, every time a goal is reached a new one is put into place, and that blissful tomorrow never comes.

Spending too much can hurt happiness in a few key ways. It turns out making more money doesn’t, in itself, change our spending habits. People who spend more than they make, or scrape by, living paycheck to paycheck, are often surprised when having a higher income does nothing to shift that dynamic. It may also lead to clutter and disorganization at home, turning a tranquil environment into a stressor.

Not spending enough is another barrier to contentment. Fulfillment, to some degree, stems from balancing what we save, spend on others, and spend on ourselves. Extreme frugality, where money is held at the expense of nutrition, preventative medical care, or other forms of personal neglect has a high long-term cost to both health and happiness.

Spending & Happiness

How we spend our money can influence our feelings of satisfaction and fulfillment. In general, spending money on experiences, to go somewhere, to do something, brings more pleasure than spending on material possessions.

Spending within our means, having a sense of financial security and stability, lets us sleep more soundly and wake up feeling more content.

Giving is gratifying, whether to charity or as a means of expressing our appreciation for loved ones.

Instead of Things, Try Buying Time

Ultimately, achieving a balance between our financial objectives and other aspects of life that bring happiness is the key. Money can be used as a tool, to help us prioritize what matters most, freeing us to focus on those things money can’t buy.

Deepening our personal relationships, improving our health, learning new skills, traveling, or taking up new hobbies all come with financial considerations. Having time to dedicate to activities, that align with our personal values and nurture our relationships, gives us a greater sense of purpose. Regardless of our means, when we allocate our finances in ways that build security, we can buy more time (our most precious resource). We are free to invest in those habits which contribute the most to our happiness and well-being.

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