It is critical to not only accumulate more money, but also to spend it in ways that bring enjoyment. People who live in or near poverty may find it challenging to be happy. If you’re worried about having a roof over your head, it can be difficult to remain cheerful. But even millionaires are sad. Indeed, people throughout the wealth spectrum frequently believe that if they had more money, they would be happier.
Researchers have addressed this problem, attempting to determine whether money can really buy happiness. It turns out that in many circumstances, it is possible—if you make at least a particular amount.
Key Takeaways
- Using money to build an emergency fund and pay off debt can alleviate stress and boost happiness.
- Being generous, such as donating to charities or assisting or treating others, can also improve your happiness.
- Try to find delight in small treats and splurges.
- How much does it take to be happy?
Multiple studies have attempted to determine the minimal income required for happiness, with often conflicting results. Interestingly, two prominent academics, Daniel Kahneman and Matthew Killingsworth, collaborated to re-evaluate their own findings and present a revised conclusion, implying that people in the least-happy cohort do not see much of a happiness gain above $100,000. However, most people reported feeling happier as their wealth increased.
How to Buy Happiness: Some Ideas
That’s an intriguing discovery, but how can you buy happiness when you have more money? Here are 13 suggestions to consider:
- Establish an emergency fund: Saving several months’ worth of living expenses in an emergency fund will help to alleviate stress in your life. It can also give you time to find a solid future job if you lose your current one, rather than having to accept the first one that comes your way.
- Get all of the healthcare you need. Even if you’re a billionaire, being sick makes it difficult to be happy. So get your exams, take care of your teeth, vision, and hearing, and consider seeing a therapist if it will help you be happier.
- Pay down or pay off debts: Having a lot of high-interest-rate debt can generate stress and cost you hundreds of dollars in interest payments. So get out of debt as quickly as possible. You might even pay off your mortgage early if you don’t want to be burdened with debt for years.
- Buy experiences: Several studies have revealed that experiences are more likely to make people happy than material stuff. Consider spending your money on enjoyable hobbies such as hiking, mountain climbing, vacation, concerts, plays, or anything you enjoy the most.
- Share the wealth: According to other research, generosity can improve your mood, so try donating to charity and helping or serving those around you and those you care about. You may coach people at work, treat loved ones to a dinner, or assist family with college bills.
- Draw happiness from simple things: You don’t need to wait for a nice event in a few weeks. You could have a premium drink from Starbucks or a Coke slushie, or you could treat yourself to a recently released book.
- Make time for yourself: Time is valuable, and we frequently seem to have too little of it. If you have the finances, you may free up more time for yourself by paying for services like lawn care and housekeeping. Going out to eat more or having meals delivered can also give you more time to accomplish the activities you enjoy.
- Connect with others: Connecting with others and having regular socialization hours will increase your mood. Spend more time with your loved ones and consider meeting new people through Meetup.com groups, dancing lessons, volleyball leagues, or reading clubs.
- Spend on education: If you have the finances, consider doing so. You might do it just because you enjoy studying languages or listening to lectures. It can also help you get better jobs.
- Indulge in your favorite hobbies: Whatever it is you enjoy doing, having more money may allow you to do it more often. Aim to do more of what makes you joyful, such as reading, gardening, or golfing. Exercising frequently is an especially effective way to lift many people’s emotions.
- Splurge on a long-term goal: Having more money allows you to achieve one or more long-term ambitions, such as learning to fly, visiting more European countries, or purchasing a vacation home.
- Get a pet: Pets may provide great comfort and happiness, and having more money allows you to afford them.
- Spend on your future financial security: Finally, don’t just keep spending without ensuring that you’re preparing for a comfortable retirement. Spending money on retirement savings and investments can provide you with immediate peace of mind, as well as satisfaction.
Money can’t buy happiness, but it can make you
awfully comfortable while you’re being miserable.
— Clare Boothe Luce
If you are a low-income earner, be aware that your happiness may improve and then stagnate as you approach $100,000 in salary. After that, you may continue to feel happier, especially if you spend your money in ways that make you happy.
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