Money=happiness?

We all like to think that more money won’t bring real happiness for us. Yet, the truth is, our thoughts, actions, and behavior belie that. Aren’t we buying more stuff, eating out more, traveling around a lot, upgrading faster, and trying to earn as much as we can as fast as possible, somehow to feel happier?

The truth is, money does make us happier, but only to a certain extent. All the recent research and scientific evidence point to the fact that once we reach a comfortable lifestyle,when we don’t worry about our basic needs, having more money doesn’t bring more happiness. Science Magazine concludes:

“While those with incomes of $90,000 and more were nearly twice as likely to report being “very happy” as those with incomes below $20,000, there is hardly any difference between the $90,000-and-more group and the $50,000-to-$89,999 set.“

We also tend to compare ourselves with those in our age bracket (I know I do), and that can be the source of our content or discontent. Jason Zweig’s “Your Money and Your Brain” also mentions that we get a bigger thrill anticipating a reward (like a new car, a new laptop, whatever) than actually receiving it, and between things and experiences, our memory leaves longer, positive impressions about the latter (never mind if you and your spouse had a big fight during your beach vacation three years ago, you probably remember it now more for the other fun, happy experiences you had at that time…and I speak from experience).

So what does all these mean? If we want to be happier, here are what we need to do:

1. Make enough money to live comfortably. Being poor sucks. Being heavily in debt sucks. Not having enough money sucks. There is no virtue in poverty. So it’s important that we earn enough to meet our basic needs and then some.

2. Don’t aim to be filthy rich. The good news is we don’t have to be billionaires to be happy (besides, you’ve certainly read about billionaires who live miserable lives).As the data shows, there’s scant difference between someone earning $50,000-$89,999 and someone making $90,000 or more. We just have to aim for a debt-free, comfortable lifestyle with occasional splurges and luxuries.

3. Be content. Having a content heart and thankful attitude will lead to a happier life. That’s why the Bible warns against covetousness because “the love of money is the root of all evil.”

4. Don’t compare. This is a tricky one. We do tend to compare ourselves with peers of roughly the same age, or with siblings (even our parents). Wealth is really relative. As Nassim Nicholas Taleb’s “Fooled By Randomness” noted, even if you’re doing well but live in a neighborhood where everyone else is doing better than you, you’d feel miserable. Move to an area where you’re relatively better off than most and you’d feel much better. Not exactly the morally soundest advice, but certainly a pragmatic one.

5. Buy experiences, not things. Accumulating stuff doesn’t make us happy. The research shows it. So where and how you spend your money will increase or decrease your happiness. And the evidence proves that doing things (experiences) generate more happiness than having things (stuff).

6. Focus on what’s important. That means your family, your health, your calling, and your relationships with other people. The research also shows that people with a deep and meaningful spiritual relationship with God are generally happier.

7. Be happy. That may sound counter-intuitive, but just having a positive, happy attitude will make you, well, happier. If you’re basically a happy person, you can just have enough, a lot, or a little, you’d still be happy. But if you’re a negative person, you can be the richest person in the world and still be miserable.