No, Money Doesn’t Guarantee Happiness,
But YES, Money Can Make You Happy
A study of 450,000 surveys showed that there is a direct correlation between your income and your happiness. According to Angus Deaton, an economist, and Daniel Kahneman, a psychologist, finding happiness can come from income, to a certain point. Up to $75,000 and you’re probably getting happier and happier, however, after about $125,000 it plateaus and has diminishing returns.Here are 3 takeaways from their study:
- More money can increase your satisfaction of life and how you evaluate yourself, but it doesn’t necessarily make you happy.
- The money has a tipping point. At some point, it no longer helps your overall happiness. For some, that may be an extra $10,000 a year, and for others, that number may be $500,000.
- Money can buy you emotional well-being, but it doesn’t mean your life is problem-free.
We’ve written about this before: the difference between making $50,000 a year and $100,000 is significant when it comes to quality of life.
However, the difference between $150,000 and $1,000,000 may not have as much of an impact.
What money can deliver is a higher quality of living standards and comfort in your life. Without a doubt, this can help to make you more happy; anyone denying this is either lying or poor.
I think of money as a tool; it is never the be-all and end-all.
Acknowledging that more money will make your life better – and even happier – can help release a subconscious drive in you that isn’t allowed in most people since mainstream thought is that money can’t bring you happiness.
This is practically taboo, and it almost feels wrong even talking about it.
Investing more, saving a ton, and making more money from multiple streams of income is fun. In my opinion, everyone who subscribes to the worker bee mentality is missing out.
Money can deliver the following to you right now!
- Less stress
- Financial independence (real freedom)
- A higher level of experiences (think luxury services)
- Control over your time (there's probably nothing more important in life)
- The means to help others on a grander level
Ultimately, it comes down to living out your life's purpose. Nothing can replace being in love with your life and what you do on a daily basis.
Connecting the two is perhaps a real key to long-term, sustainable happiness – how to monetize your passion is an admirable achievement.