Money and Happiness

I am a little tired of hearing the adage” Money can’t buy happiness”. It’s true, of course, but the words are often conflated to mean many things that are not true. They do not imply, for instance, that money is bad. It’s true that having a lot of money can lead to selfishness and greed, but it is also true that having money is better than not having it. Very much so. And properly used, money can buy happiness. Consider the following findings, all the product of research studies:

1. People who spend their money on experiences are happier than those who spend it on material things. Experiences can be re-lived over and over again ( even the bad ones if they are shared) but that new videogame, that dress or that curio soon loses its appeal.
2. Social experiences bring more happiness than solitary ones. We enjoy an experience more when we do it in the company of others.
3. Spending money on friends or family makes us happy because it brings us closer to them.
4. Using money for good deeds also brings positive feelings and
5. ( This one is my favorite insight). According to an article in Emotion magazine, the amount of cash in your checking account is a good indication of your happiness and satisfaction with life. Not your investments, income or net worth. Your Checking account. When I first read this, I was a skeptical. Isn’t the total amount of money you have the most important indicator of your well -being? A little thought soon set me straight. The cash in your checking account is what you can spend, what you will spend one day soon. Your investments and net worth, on the other hand, are good for your peace of mind, your security against a rainy day. You will probably never ” enjoy” that money.

   Simple when you think about it, isn’t it?