On a chalkboard, sad face plus dollar sign equals happy face

Does Money Really Make People Happier?

"Money, money, money, Always sunny, In the rich man's world."Abba gets me, that's what you're thinking. We all have hopes of someday finding a money tree of sorts—a limitless source of income and cushioned financial security with Benjamins to spare. It's a common assumption that money will solve all your problems, that it'll buy you happiness. That assumption is only party true."We equate money with security and freedom, which inevitably leaves us feeling insecure and constricted," says David Geller, author ofWealth and Happiness.In his book, Gellershares a core message that money is not security or freedom. It's not going to turn an unhappy life into a happy one. But money is a tool, and you can use that tool to find happiness and better your life."The purpose of having wealth is to use it to create the life you desire, enhance the lives of the people you care about and leave a legacy that represents your passions and values," he says.That'shappy.Charles Richards, author ofThe Psychology of Wealth, agrees. "It's no coincidence that money is also called currency, taken from the wordcurrent—the flow of electric charge through a conductor," he writes. "Learning to manage money responsibly and serve others is like being able to use electric current in a productive manner. We can become powerful transformers for the currency of society. How we use that power is a great responsibility."Get this: After a modest level of income, there isn't really evidence to suggest that people's happiness increases with their wealth. Instead, whether you're loving life or hating it really depends on how you're using your money.But does that really matter? Yes, yes it does. There are steps to happiness, and the first one is to achieve a stable lifestyle—not to indulge in your next dose of pleasure. After the anxiety to provide life's basics, like food and a roof over your family's head, is diminished,thenyou can look to the pleasurable perks of financial success, like reservations to that fancy French restaurant around the corner or a drive in that shiny red sports car you've had your eye on for, like, forever. But that's not what the ultimate goal should be; luxury items won't make you happier—not in the long run."The purchase of those luxury goods or experiences does provide a short-term burst of pleasure, but it quickly fades,"Geller says. "Giving up happiness to purchase pleasure is a bad deal. It is almost always a good trade to give up some pleasure to buy additional happiness. We can use some of our freed up resources to help people we care about the most, and as we do that, we are likely to get a big boost of happiness."Geller says people should use their financial success to build better relationships, for more engaged experiences or to make a difference in the lives of the people who matter most. Wealth is about the resources we have to build a life we really, truly want."When we define wealth in purely financial terms, we underestimate the power of our other elements of wealth, and we often end up overlooking compelling solutions to our most powerful opportunities or challenges," he says. "The truth is, in many cases, our nonfinancial elements of wealth are considerably more powerful than our money."Happy might be hiding around the corner, so now you just have to go find it. But how?Geller suggests first reflecting on what you enjoy most about your life, what stresses you out the most and what parts of your life could use some positive transformation. Number two: Share your goals with friends and family—and stick with those who are supportive of your dreams and your plans to change certain aspects of your life. And then it's time for some action—make one incremental change, a change that will push your life toward a better, and happier, future."Success does not require a great deal of money," says Richards. "What it requires is a belief in one's inherent worth and a willingness to make a conscious investment in oneself.... A new state of mind must be put into practice in order to move forward in life and achieve something greater." Success—and happiness—comes from making the right choices and acting on your passions.Like Geller says, "Happiness takes work, and happiness takes time." So take a deep breath, and chase happy.
Read More
Happy Couple paying bills

Money Makes Us Feel Good

Neurological experiments show that even the hope of getting a monetary reward sets off our brain’s pleasure receptors. But you don’t need to read brain scans to see how money makes us feel and react—just walk into a casino and watch both the winners and the losers.If money can make us happy, does having more money make us happier? Just how much does it take to make us feel better?While 7 out of 10 Americans say they would be happier if they had more money, even a 50 percent pay raise isn’t enough for most to give up time with their children and family. That’s what a survey of more than 2,000 adults conducted a year ago by New York Life Insurance Company found.The survey is part of the Fortune 100 company’s “Keep Good Going” initiative to explore American’s attitudes and expectations on cultivating goodness within family, personal life, work and community.“Despite the impact of a tough economic environment and people’s conviction that life would be easier with more money, a 50 percent pay raise still didn’t move the needle when it came to cutting down on time spent with family—children and spouses. This is very telling about what Americans value,” said Liz McCarthy, senior vice president and head of corporate communications for New York Life.In other words, once your basic needs for food, clothing and shelter are met, it’s less about money and more about interactions with others that makes for a more satisfying life. Other studies share similar outcomes:A recent survey by Cangrade, a job candidate screening company, found that money accounted for only 5.4 percent of employee happiness on the job. It turns out that power and influence, achievement/prestige, work-life balance, and affiliation and friendship all ranked higher, a surprise for many employers.Research from Princeton University professors Angus Deaton and Daniel Kahneman suggests that high-income individuals aren’t necessarily happier, but emotional well-being rose until annual income hit about $75,000. “Beyond $75,000 in the contemporary U.S., however, higher income is neither the road to experienced happiness nor the road to the relief of unhappiness or stress, although higher income continues to improve individuals’ life evaluations,” the researchers reported.The Harvard Grant Study, which began in 1938, followed 268 men for about 75 years to uncover what made them happy and successful in old age. George Vaillant, one of Harvard’s directors for the study, reported the significant finding: Relationships matter. A lot.So in the long run, it’s not more money but our social connections and personal relationships that bring happiness and satisfaction. Given that tenet, how can you budget for joy, or the happiness factor? Here are 7 ideas that won’t deplete your bank account:Buy lunch or coffee for someone once a month. You might be surprised at how appreciated a $2 coffee can be.Remember someone’s birthday with a phone call, card or visit.Plan an event with friends or family—connect and make memories together on a vacation, reunion or just an afternoon trip to the park or zoo.Deliver an unexpected treat to make someone’s day—a baked goodie for a neighbor or a book/flowers/candy for a friend or child’s teacher.Lend a helping hand—rake leaves, make a grocery run or repair a faucet for an elderly person.Write notes or send cards frequently—thank-you notes are great, but people love “thinking of you” greetings too.Give to a cause, whether it’s buying popcorn from the neighborhood Scouts or running a 5k to support cancer survivors.Joanne Kuster is a writer and financial educator who currently writes and operates The Money Godmother blog. She is the author of the award-winning Stock Market Pie and Entrepreneur Extraordinaire.
Read More