Does money make people happy?

By | January 8, 2017
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Does money make people happy? Money makes you happy, but …

moneyhappy

Wealthier people and wealthier countries are happier than poor people and developing nations. As individuals and countries get ­richer, they get happier.

This relationship between income and happiness is adamant.

What’s the nature of this connection? Does money make people happy?

If we say, rich people are happier than poor people it does not mean that money makes them happy. Correlation is not causation.

Wealthy countries are happier than the poor ones. Is it only money? Maybe it is the democracy, greater opportunities, the rule of law, having functioning markets, political and social institutions.

Psychologists and economists famously concluded that happiness does not really increase above incomes of $75,000 a year.

Very high incomes do not increase well-being. The increases above $75,000 are vanishingly small.

The thing that changes happiness is NOT ONLY income growth. The U.S. economy has grown a lot since the 1970s, but happiness hasn’t increased much.

For example, compulsory education up to an age older than 16 could help. Research shows that education and skills not only increase income later in life but also increase the happiness of the people.

Are you happier now that you make more money than you used to?

I think you say YES. moneyhappy

If you have a well-paying job, you stop looking at price tags. You never really feel stressed about money.

Economists say that money is all that matters and psychologists mean that money is completely unimportant. Where is the truth? 🙂

I hope you like this article and I would be happy if we can discuss your opinion. Feel free to write a comment below.

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6 thoughts on “Does money make people happy?

  1. Therese

    When worries are gone, the mind can relax more.
    This opens up the possibility for happiness greatly, I think that is the main reason that it happens this way…..

    Reply
    1. Andrew Post author

      Hi Therese!
      It is true, not money makes us happy. They play a role, but there are so many factors which influence happiness. Thanks for your comment and have a great day.
      Andrew

      Reply
  2. Mike

    I think that having money removes most of the “stressors” from our lives, but it does little or nothing as far as happiness goes. Some would argue that, but some of the most unhappy people I know are rolling in dough! On the other hand, some of the most happy people I know are also rolling in dough. The same is true of people I know with little or no money.

    I think that happiness is a choice and money really has nothing to do with it other than making unpleasant things more tolerable. Having money makes life more convenient. But that’s just my opinion. That and a few bucks will buy you a Starbucks! lol

    Reply
    1. Andrew Post author

      Hi Mike! Your opinion counts and you are right. Money does not make you happy. Thank you very much and have a happy weekend!
      Best wishes
      Andrew

      Reply
  3. Axton

    I definitely agree that one will be happier if he or she makes more money. Or to put it in other words, people who make more money have less things to worry. There is a survey done in USA showing that more than 70% of the people are not happy with their work in relation to their income.

    Some people may say, if you have a business you may have more worries. That is true, but i always categorize worries into:
    1. positive worries – you have a lot of problems from a business that is making money for you
    2. negative worries – you can’t pay your house installment, your children education and other commitments

    Since we are going to have problems and worries anyways, i prefer to have the positive ones.

    Reply
    1. Andrew Post author

      Hi Axton!
      Thank you for this great comment. I want to have only positive worries as well 🙂 Unfortunately the most people are unhappy with their incomes and there are some possibilities to earn money online. It is easier than we think.
      Cheers
      Andrew

      Reply

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