Debate: Can Money Make You Happy?

Given the fact that I write a blog that’s solely – on the surface, at least – dedicated to the pursuit of making money, it would be fair to assume that the acquisition of cold, hard cash is something that I’m pretty passionate about.

I’d say that’s an overly cynical way to look at it, actually.

But it’s true that I believe that being able to make money on my own terms has a direct bearing on my happiness and my wellbeing, that as women especially we need to ditch the hang-ups we often have about expecting and outrightly demanding more, and that without it, we’re all up shit creek without a paddle.

And so recently, I picked up a copy of Derren Brown’s latest book – fittingly named Happy – and I was curious to see how he tackled that existential question of whether money can make us happy.

Very well, as it happens.

He argues that being richer does indeed make you happier, but only to the point of being financially comfortable. You get happiness indirectly through the absence of stressing about your lack of cash.

But beyond that point, money is really just a side effect of doing what you love, and and has no greater bearing on your happiness than your wallpaper.

All of this got me thinking about my own relationship with money and its impact on my state of mind and sense of wellbeing. So I did some digging, I chatted with my fellow money bloggers about it, and I took a good look at some of the evidence. Unsurprisingly, it’s a subject that psychologists have debated greatly…

THE $75,000 SWEET SPOT

A study by Princeton University back in 2010 went as far as to put an exact figure on it. They claimed that the lower a person’s annual income falls below $75,000 per year, the unhappier they will feel. But once their earnings exceed that $75,000 benchmark, they don’t report any greater degree of happiness.

Money cannot intrinsically make you happy, but it’s pretty damn hard to be happy without it.

And you see, really, this is my whole point. The whole reason why I’m here, writing this, in the first place. This blog right here may be about making money. But what it’s really about is taking that money and using it as a tool to improve your life. To free yourself of a job that fills you with anxiety and dread every single morning, or to release yourself from the shackles that mean that you have to watch and worry about every single penny that you spend, or to build a fuck off fund that allows you to do precisely that.

Can those things make you happy?

I believe so, yes.

Not on their own perhaps.

But without them, life can certainly be a lot harder, and a whole load more miserable.

MASLOW’S HIERARCHY OF NEEDS

Are you familiar with Maslow’s Hierarchy of Needs? If not, it’s a psychological model that seeks to explain human behaviour and motivation, and it proposes that our needs are arranged in a hierarchy, with some needs being more basic and primitive than others. It argues that only once our more basic needs have been met (e.g. hunger and safety), can we seek to fulfil our higher needs (such as creativity and friendship).

Simply put, if we’re starving and struggling to put food on the table, we don’t give much of a shit about maintaining and cultivating our friendships.

This right here provides more evidence for the theory that money can make us happy, but only until a certain point.

It’s crystal clear that the availability of cash is a key factor in realising our most basic needs. We need money to be able to eat. We need money to be able to put a roof over our heads. But beyond that, do we need money to be able to form meaningful relationships, or to gain the respect of others? This is where, again, it becomes altogether more complicated.

It wouldn’t be hard to argue that it is indeed a factor. But it’s not the only factor, and just how much bearing these things have are largely going to come down to the individual in question, and their own experiences and world view.

So really, we’ve come full circle, and we’ve confirmed what we learned from the $75,000 sweet spot. Money is essential in achieving a basic level of happiness. But beyond that, it really is quite debatable just how important it is.

It’s probably worth noting that Maslow’s theory is hotly contested in academic circles, and when you try to get to the bottom of what his work was based around and the scientific robustness of it all, you’ll find yourself down a rabbit hole that poses more questions than answers.

But still, it’s easy to apply and to understand, and most people resonate with it.

THE RICH AND THE MISERABLE

Anecdotally, tweets from Minecraft developer Markus Perrson – almost a year after he sold the company to Microsoft for $2.5billion – support the theory that beyond a certain point, money can’t create happiness.

Needless to say, some Twitter users, and some journalists who reported the story, were less than sympathetic. But maybe there’s a lesson for us all here. It’s clear that a bloody-minded pursuit of riches will ultimately be an unfulfilling and quite possibly destructive journey.

Bob Marley would probably have agreed, and he’s famous for commenting, “Money is numbers and numbers never end. If it takes money to be happy, your search for happiness will never end.”

WHAT UK MONEY BLOGGERS HAD TO SAY…

It’s evident that our relationship with money is a very personal thing. Though we’re all human beings and our basic needs are largely universal, there are plenty of different views on the subject. Here’s what UK money bloggers had to say about whether money can make you happy…

“This is something that I’ve been thinking about myself recently and I’ve come to the conclusion that I definitely don’t think money can make you happy but without it, life can be pretty miserable. For me, I want to be able to enjoy my family life without having to worry about paying the bills – that’s enough to make me happy.” – Cass from Frugal Family

“Without a doubt yes! Money brings the ability to choose. With money we can be, do and have whatever we want. I think however it’s a delicate balance, because we can get trapped in the cycle of never feeling like we have enough. When we don’t have money worries, we’re definitely happier- it’s the whole basis for why I started The Female Money Doctor blog. I know from my own experiences and from those of my patients that when money properly supports you in your time of need, stress and anxiety don’t cause an issue in our lives. So yes, money as a tool buys happiness- the ability to do all the things you’ve always wanted to do with the people you love. That’s happiness in my book.” – Nikki from The Female Money Doctor

“For me money brings security. Knowing if my husband is made redundant we’ll be ok. If we have health problems and can’t afford to wait on the NHS we can get treatment. Money definitely brings happiness for me, mostly through security.” – Katy from Katy Kicker

“I think money can aid you in the pursuit of happiness, for example more money may mean having to work less and having more time to spend with your family or to pursue your hobbies. It can also allow you to study or travel, things that you may not be able to do with less money. However I don’t think that money alone is a recipe for happiness.” – Jen from My Mummy’s Pennies

“If I had the money I could cover the costs of the pioneering new stem cell treatment which could potentially cure my MS and surely make life better and happier. As Nikki quite rightly says, with money comes choices so whether I choose to take the risk of whether it works or not, at least it’s a choice I could make because at the moment I’m not considered as eligible to participate in any of the treatment runs on the NHS.” – Jane from Lady Janey

“I think the security it brings makes me happy. My mental health really suffered when we were poor, and being responsible for a child living in poverty I just couldn’t cope with the financial stress.
Now I am comfortable I am far happier. Lots of lessons have been learned and I’m grateful for the happiness money has allowed.” – Kaya from Earning By The Sea

“I guess it depends what you mean by happiness. I definitely think it’s possible to be content without money, but having money can make a huge difference to your quality of life, which in turn can have a huge impact on your mental state. Not having enough money can lead to stress, anxiety, depression etc. I think though, that once you get to the point of having ‘enough’ to live comfortably without anxiety, more money wouldn’t mean more happiness.” – Hayley from Miss Many Pennies

“I know that ultimately money can’t bring happiness as it comes from within, however at the moment, money would make my life much easier therefore I’d be more relaxed and happy. I am a mum of a toddler with a baby on the way and not having family help nearby (either mine or my husband’s) makes life harder. If I had more money, I would buy ‘help’ – more hours at nursery, night time nurse support, house help, cleaner etc Having said that, I’m grateful for what I have and so I’m happy with that.” – Raimonda from Cosmo Mum

“I don’t think it can make you 100% happy BUT having a good handle on it and not having debt to worry about can make life a lot easier and therefore more enjoyable.” – Charlotte from Charlotte Musha

“For me, money is freedom! The more I have the more freedom I have to decide how I spend my life. What I do within that freedom determines my happiness.” – Charlotte from Looking After Your Pennies

“Money doesn’t make you happy, but it makes being miserable a whole lot less miserable.” – Rich Dad, Poor Dad – Sam from Money Nest

“Money buys freedom which I think is the key to happiness. Freedom from working a job you dislike, freedom to see the world and spend your time doing what you want to do. I don’t think happiness is the only aim in life. Life has to have meaning and purpose, which to me is more important. But yes, money can buy happiness, sometimes directly, sometimes indirectly.” – Andrew from Capital Matters

“I know people with a lot of money who aren’t completely happy and who are certainly not owning their own life. This is down to the choices they have made. I think the most important thing is the choices that money can give you, whether or not you make the right choices is then up to you. So, actually it’s not the money that makes you happy but the potential choices you make as a result of having the money.” – Michelle from Time & Pence

“If used right, yes money can buy happiness.Another angle you can look at it is this. Instead of pursuing happiness, try to remove tasks that make you unhappy. In other words, what are some annoying everyday tasks? For me, that would be cleaning the house, ironing and filing business expenses for accounting purposes. Money could definitely buy cleaning service to help with the chores and a personal assistant to handle the tedious tasks I want to avoid doing. Then I can focus on things I know I like, like writing more blog posts like this one and replying to personal finance e-mails that arrive regularly in my inbox.” – Michael from Foxy Monkey

“Money is like a light bulb. When you have it, you probably don’t notice it all that much, it’s just there. You sure as hell notice it when it’s not. I’ve been poor, very poor and destitute and it’s horrible, disempowering, restricting and life limiting. Not going back there was a huge driver to succeed and now I have what feels like plenty, I enjoy sharing the love.” – Lesley from Thrifty Lesley 

“No, money alone can’t make people happy. If it did then people in the developed world would generally be happier than those in the Third World. They aren’t. If anything, some well travelled people say in some relatively poor areas the people appear happier. Another example, most students are skint yet many say it’s the best times of their lives. Sure, a windfall can bring moments of happiness. Yet it doesn’t last. Most people soon get used to what they have & want more.” – Adam from Money Savvy Daddy 

“I don’t believe money in itself makes you happy, but what it does afford you is the flexibility and choices to explore what does make you happy. But more than this, I believe our relationship with money is key. Some of the world’s wealthiest are desperately unhappy and maybe that’s brought on the responsibility and anxiety they associate with money from their childhood. Whereas those with very little find great happiness. Minimalism is a great example, where value and fulfilment with what little you have can bring happiness.” – Laura from Pretty Minted

“Money by itself does not make me happy but having money gives me choices. Without money I couldn’t choose to retire early. Without money I couldn’t choose to fund counselling for my daughter. Without money I would be afraid to do anything to risk my status quo and therefore would not grow as a person. Money gives me choices that make me happy.” – Emma from Tuppenny’s Fireplace

SO CAN MONEY MAKE YOU HAPPY?

Yes. And no. Only up until a certain point. And largely only when you can cultivate a healthy relationship with money, and it’s just one part of a bigger picture. To achieve true happiness and wellbeing, it’s less about how much money we have, and more about how we can use it as a force for good in our own lives, and the lives of others.

Where do you stand on the debate?

Leave a comment below and let me know.

I’m taking part in the Monday Money linky with Lynn from Mrs Mummy Penny and Faith from Much More With Less.

 

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