Can Money Buy Happiness?

They say money can’t buy happiness… but let’s be real, have you ever seen someone sad on a jet ski? 🤔 Today, we’re discussing IF money can buy happiness. Some believe that having more money brings greater happiness and fulfillment in life. And the flip side of the coin is that money cannot buy happiness, and that true contentment comes from within. Turns out there are at least 8 ways money buys happiness and 1 huge way it doesn’t. 

 According to a landmark paper in 2010 by 2 Princeton professors who are also noble prize winners, they concluded that money does contribute to happiness to a certain point – 75K us dollars. 

So why 75K? In many parts of the US, 75K will more than cover your basic needs, security and comfort. You won’t be walking around in Chanel from head to toe but if you see a pair of Old Navy jeans that are full price, you can buy them. 

Keep in mind this was 2010, social media influencers weren’t as big as they are now. 2 years ago they revisited the data with other researchers, and they have updated their finding. More on that later.

Why does money often gets painted as the bad guy. But the truth is, Money itself isn’t good or bad—it’s just a tool. How you use it is what makes the difference. So, let’s talk about how money can be your happiness BFF when you put it to good use! 

Here are 8 Ways Money Can Buy Happiness

1. Less Financial Stress

Having money in the bank can significantly reduce stress and anxiety. With an emergency fund, you’re better equipped to handle unexpected expenses without panicking. Peace of mind from financial security can be a huge boost to overall happiness. 

2. Experiences over stuff.

Research shows spending on experiences—like trips, concerts, or even a cooking class—creates memories that bring long-lasting joy. Bonus points if you share these moments with loved ones!” 

3: Buy Back Time

Time is our most precious resource. Use money to free up your schedule! Hire someone to mow the lawn or order meal kits to save hours in the kitchen. Less stress, more happiness!” 

4: Help Others
And here’s the kicker: Spending money on others can boost your happiness more than spending it on yourself. Whether it’s donating to a cause you love or treating a friend to coffee, giving feels great.” Don’t believe me, ask Mackensie Scott Bezos. She’s worth a bagillion dollars, gives away billions of dollars and is worth more. I’ve never seen a picture of her not smiling. Before you say she does it for a tax write-off, all those other billionaires aren’t donating anywhere near the amount she donates. They just hoard their money and get the government to change the tax laws so they pay less and we pay more.  

5 Health and wellness

Money spent on health. You will go to the doctor because you can afford the co-pay. Do you know how many moms don’t go to the doctors because they need the money for their children? 

So whether it’s a gym membership, nutritious food, or mental health support—can boost your well-being. Investing in your physical and mental health leads to increased energy, better mood, and a happier life overall. 

6. Enhancing Comfort and Convenience

Upgrading your living situation, investing in a comfortable workspace, or enjoying small luxuries like a good cup of coffee can make your daily life more enjoyable. Comfort isn’t everything, but it sure helps make life sweeter. 

7. Learning and Personal Growth

Spending money on education, courses, and personal development tools can bring long-term happiness. Gaining new skills or knowledge can be empowering and give you a sense of accomplishment, boosting your confidence. 

 8. Creating Meaningful Moments

Money can help you celebrate special occasions, like birthdays, anniversaries, and holidays. Being able to gather with loved ones, host a celebration, or travel to see family creates joyful, meaningful moments. 

The Pitfalls of Buying Happiness (And How to Avoid Them)
 Okay, let’s be honest—money can also not buy happiness if you’re not careful. Buying more stuff you don’t need? That’s a temporary high. Keeping up with the Joneses? Total stress-fest. Let’s avoid the traps and focus on intentional spending instead!” 

The Secret Sauce: Align Spending with Your Values
 

Here’s the key: Align your spending with your values. Love travel? Save for adventures. Passionate about your career? Invest in courses or tools to grow. When your money supports what matters to you, happiness naturally follows!” 

The updated money and happiness paper.

They went back and reanalyzed the data with other researchers. The new conclusion money can keep buying happiness for already happy people. For unhappy people, the money just delayed unhappiness for a while. 

So, the next time someone says ‘money can’t buy happiness,’ you can say, ‘Actually, it can—if you use it wisely.