The age-old question of whether money can buy happiness has puzzled philosophers and economists for centuries. While conventional wisdom holds that money cannot buy the human quest for happiness beyond basic needs, research paints a more nuanced picture.
I grew up hearing the Bible saying, “The love of money is the root of all evil.” This is a warning that prioritizing money above all else is corrosive to the soul, as money becomes one’s god. However, now in my 60s, having raised five boys and 15 grandchildren, I surrender my autonomy to the temptations of money and worship money, becoming a slave to the growth of money rather than the pursuit of wealth. I believe that there is a greater danger. happiness).
In this context, “money” is an object or commodity, something to be controlled, while “wealth” is having enough: enough love, friends, hobbies, time, money. Therefore, money is part of wealth, not the other way around.
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Does happiness level off at $75,000?
Basic research by economists in 2010 Angus Deaton and a psychologist Daniel Kahneman They found that, to some extent, higher income correlated with greater daily satisfaction. However, this effect disappears after annual incomes reach about $75,000. Beyond that level, more money doesn’t seem to change happiness.
This research supported my initial paradigm. The scoop from high school and college educators was that money could buy you happiness as long as your basic needs were met.think Maslow’s hierarchy of needs. After that, profits decrease even as revenue increases. Therefore, the first study was a rule of thumb in a philosophical conversation on the subject of happiness and money.
Matthew Killingsworth Recently published by the Wharton School of the University of Pennsylvania Discovery that casts doubt on plateau theory. His research reveals that there is no financial threshold at which the ability of money to improve well-being diminishes. On the contrary, its positive impact appears to persist across all income levels and even increase.
One explanation for this lies in perceived control. Money allows for choices and freedoms that are otherwise difficult to obtain. As your income increases, your lifestyle options also increase. This increased autonomy and opportunity increases happiness.
money and subjective well-being
A joint analysis by academics from the University of Pennsylvania and Princeton University reveals the complex relationship between money and subjective well-being. Their research reveals how increased income is associated with improved daily mood for most individuals, while also showing how increasing income is associated with improved feelings of well-being for some people. It is specified.
Three important findings are worth considering. First, there is the concept that beyond a certain threshold, extra money no longer has a significant impact on happiness. Second, the opposing perspective suggests that there are no visible limits and that as income increases, money consistently improves quality of life and provides greater autonomy and opportunity. Finally, the researchers identified a group of people whose level of income seemed to have little to do with their happiness, regardless of their income.
constructive collaboration
In an attempt to reconcile the conflicting findings, the researchers joined forces with professors. barbara mellers As an impartial third party arbitrator. Their adversarial collaboration combined rigorous statistical analysis of previous data on both income and happiness.
Furthermore, their research approach encouraged direct questioning of the underlying assumptions between both sides. The aim was to achieve a higher degree of integration through this constructive interaction, driven by substantive data review and discussion of ideas across the team.
So which one is it? Is the relationship between money and happiness fading, or is it continuing to grow stronger? Killingsworth summed it up.
“For most people, higher income is associated with greater happiness. The exception is those who are financially well off but unhappy. For example, if you are rich and miserable, more money helps But for everyone else, we found that increasing income is associated with feeling happier at all income levels, even among the wealthy.”
This aligns well with my own discovery of prioritizing money over purpose and people. When we look at money as a scorecard for success or sacrifice too much in pursuit of money, our joy quickly crumbles. Killingsworth says, “People who equated money with success ended up being unhappy, even if their salaries were high.”
conclusion
Chasing money and glory at the expense of your soul and sanity will not work. True prosperity combines financial security with meaning, relationships, and service. If you accumulate money and end up feeling empty inside, no amount of money can fill that void.
There are currently 58 million Americans over the age of 65, and about 10,000 people join each day. Despite this trend of more people leaving the accumulation phase and retiring, little is being done to address the transition to a new lifestyle. Financial planners and their clients would benefit by shifting their focus away from rates of return and concentrating on developing strategies for leveraging the money they have accumulated to secure a fulfilling lifestyle called wealth.