Can money really buy happiness? (2024)

The connection between money and happiness has been debated for a long time, and the answer is not so straightforward. A study by Matthew Killingsworth of The Wharton School suggests that higher incomes are generally associated with greater happiness, especially when people have enough money to meet their needs.

However, once a certain income level is reached, having more money doesn’t make people significantly happier. This means that money does play a role in promoting happiness, but it’s most important when people have enough income to cover their basic needs.

Happiness is influenced by many factors, not just money. One interesting finding is that spending money on others can make people happier, regardless of how much money they have. Giving to charity, buying gifts for loved ones and supporting community projects can bring a sense of satisfaction and happiness.

Another important finding is the quality of social relationships. People who have better and more meaningful connections with others tend to be happier. Those with higher incomes often have more fulfilling relationships, possibly because they have more social connections and educational opportunities.

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Having control over one’s time and activities is also important. Even though both rich and poor people can be busy, those with higher incomes usually have more control over how they spend their time.

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This freedom allows them to do things that they value and enjoy, which brings a sense of fulfillment. Finding a balance among work, leisure and personal interests is important for happiness.

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While financial limitations can affect some people’s freedom, finding ways to manage time better and taking control of their schedules can still contribute to happiness, regardless of income.

How many affects happiness

When we look at how money affects happiness, we see that having enough money can help us have better experiences, build stronger relationships and have more control over our time.

However, it’s important to note that money alone doesn’t guarantee happiness. How we use our money to improve our lives is what really matters.

Thus, it’s important to establish a solid financial foundation. This means that when we have enough savings and assets to cover our expenses, we can handle unexpected situations.

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When we have this financial security, we don’t have to worry as much about money problems, and that allows us to focus on enjoying life and pursuing our goals. This sense of stability contributes to our overall happiness.

Having financial security also gives us freedom and flexibility. When we’re in a stable financial situation, we can make choices that match our values and goals. Whether it’s buying some shares in the stock market, changing jobs, or taking a break to travel, being financially secure allows us to take advantage of opportunities without worrying about money. This flexibility gives us a sense of independence and satisfaction, which makes us happier.

Financial security also helps to reduce stress. When we don’t have enough money, we often worry and feel anxious about how to pay for things we need. It can be really stressful to always think about how to make ends meet.

Freedom, security and opportunities

While money alone doesn’t guarantee happiness, it does provide the means to pursue factors that contribute to a fulfilling and joyful life. Financial resources offer freedom, security and opportunities that can enhance the quality of life.

If you’re interested in learning more about managing your money and improving your financial security, save the date for the 12th Financial Fitness Forum this coming Saturday, April 13. The forum will bring together top registered financial planners who will share their valuable insights, strategies and tips to shape your financial well-being.

The event is supported by International Marketing Group, Kaiser International Health Group, Manila Bankers Life Insurance, Rampver Financials and Atram and offers a fantastic opportunity to learn from industry leaders and get practical guidance on effective financial management.

Whether you want to create a strong savings plan, make wise investments, or secure your financial future, this forum will provide comprehensive knowledge to improve your financial literacy and make informed decisions.

The Financial Fitness Forum will cover various topics related to personal finance, including budgeting, managing debt, insurance planning, retirement planning and investment strategies. Through engaging presentations, interactive sessions and real-life examples, you’ll gain practical skills and actionable steps to pave your path toward financial freedom. INQ

Henry Ong is a registered financial planner of RFP Philippines. To get free access to Financial Fitness Forum 2024, send an email to [emailprotected] or visit financialfitnessforum.org