Does Money Make You Happy? Possibly Not!

There’s so much truth in that old saying about the grass always being greener on the other side.  We always think that our lives would be so much better if something were different.  For example if we had a more exciting job, or lost some weight, or had more money.

But does money make you happy?  It often seems that everything in our lives comes back to money, and that if we didn’t have to worry about money then things would indeed be a whole lot better.  We could buy whatever we want, whenever we want it, and go wherever we liked without having to scrape the money together first.  Surely we would be better off in every way?

Well interestingly things are not that clear cut.  Yes, if you did suddenly come into a significant amount of money you would most probably be ecstatic!  You would have the immediate freedom to treat yourself to some of the things you really want and also to settle any financial debts you may have, and maybe help out your family and friends.  But what would you do next?

Interestingly, research shows that once you have sufficient income to give you a reasonably comfortable life, gaining even more money won’t necessarily make you any happier.   There is no direct link between money and happiness: and in fact it has been found that the more materialistic people are, the less happy they are likely to be.  People who measure their success only in terms of their material wealth are quite likely to have low self-esteem and may often be depressed.

Rather than spending money on “things”, it is more satisfying to spend money on experiences and people.  Enjoying a relaxing break or a wonderful night out can bring not only happiness at the time but a wealth of memories to treasure.  This means that the impact of the experience lasts much longer than the initial excitement of buying something new.

Spending money on experiences is also more satisfying in terms of our relationships with others.  When we focus solely on material goods, we can get into a comparison cycle with other people.  We love what we have – until we find that someone else has something even better and then we feel dissatisfied.  But personal enjoyment of an experience cannot be spoiled in this way.   

Similarly, your happiness and self worth are also likely to be higher if you are able to spend your money on other people in a way that enhances your personal relationship with them; and also if  you are able to give money generously to causes that you strongly believe in.  Both of these aspects of spending money are more meaningful than just collecting possessions.

Recent research has also come up with another key area where spending money can be positive.  Using money to buy you extra free time.  Yet many people are reluctant to do this.  The research – of over 6,200 people in the US, Canada, Denmark and The Netherlands – asked them how they felt about paying other people to do chores such as  cleaning, cooking, mowing the lawn, household maintenance or even shopping.  According to one of the researchers – Professor Elizabeth Dunn, from British Columbia University in Canada –  “Although buying time can serve as a buffer against the time pressures of daily life, few people are doing it even when they can afford it … Lots of research has shown that people benefit from buying their way into pleasant experiences, but our research suggests people should also consider buying their way out of unpleasant experiences.”

So if you were to have money, seemingly the way that it could make you happy is by spending it on enjoying experiences and relationships, and also using it to make your day to day life that little bit easier.

Lots of food for thought there!  But it is also quite encouraging to think that whatever our financial situation we can be happy by focussing more on experiences and relationships that material possessions.  Even if you are struggling financially, you can create fun experiences with family and friends that do not cost the earth.  You can perhaps also take on board Professor Dunn’s advice and help to free each other up from the daily drudgery of life.  For example if you are a keen gardener and someone else loves cleaning could you trade services and do those chores for each other from now on?

However, although money doesn’t buy you happiness, a lack of money can bring you misery.  If you are struggling with getting your finances in order and need some additional help then you may want to consider an  unsecured  loan from Loans2Go to help you get back on your feet and moving forward again.  You can check out details of our  unsecured loans online or by giving us a call!