Ever asked friends and family the sutra to be happy? Relationships, values and other non-material things must have surely made it to that list. Plus, they would have also said that money can’t buy happiness. Guess what, a recent study shows that money can indeed make you happy. Yes, a study by Mathew Killingsworth corroborated another 2010 Princeton study and showed that increased earning equals increased happiness. The new study reveals that higher earners continue to experience greater “happiness” as their income increases beyond $75,000 and that well-being rises linearly with income.
In this blog, we unfold the perfect relationship between money and happiness and share ways you can be more satisfied with relation to money.
1. There’s No Free Lunch
There’s nothing called free lunch in this world. After all, it is with money that you can fulfil the lower needs of food, shelter and security on Maslow’s Hierarchy of Needs pyramid. In purely economic terms, more money places you on a higher utility curve as you get more choices. Money can help you achieve success materialism and shift your mindset to enhance economic motivation that is your drive to work and improve your well-being.
2. Financial and Emotional Well-being
Tough times come to us when we least expect them and steal us of our happiness. However, when you have a rainy day fund, you have a cushion against the worst and be in better control over the situation. Supporting your loved ones in crisis requires emotional and financial well-being and if you have both, they feel more reassured.
The thumb rule is that you should have a buffer equivalent to 3 months of your basic salary to have greater autonomy whenever there’s a dilemma.
3. Happiness of Giving
A 2008 study showed that money is correlated with happiness when spent on others. Remember that time when you gave her the first gift or took them for a vacation? Spending on others gives a sense of fulfilment and why not, we are all social animals who have an affinity for healthy relationships with others. After all, money is what you need for the joy of giving in philanthropy and for connecting better and stronger social ties.
Spending money on experiences makes you happy because you share those moments with your spouse, partner, friend or family. If you are waiting to buy an experience worth sharing but not sure how to fund it, get on to EarlySalary now to get the necessary financial support. We can help you with an instant loan so you don’t have to wing it alone.
4. Golden Triangle of Happiness
The golden triangle of happiness puts relationships, financial control and sense of purpose at the core of satisfaction and wellbeing. If you are capable of meeting your financial commitments such as bills and payments, you feel more comfortable with your current situation.
Savings help you enjoy life while building resilience for the future. Make sure you actively save, do budgeting and not spend mindlessly. You may or may not have been bestowed with a fortune but, you can build yourself wealth and close the gap through financial planning.
5. Money is Just a Means and not an End
What matters the most is how you choose to spend and earn money. There are not many “millionaire next door” types, so you should know how to live within your means, save and invest money like it’s your second job. In crazy times like these, where millions lost their jobs, saving and investment are worth their weight.
Just put together all the studies and you’ll realise that it is safe to say that money and happiness can be the perfect relationship. Whilst, you should know that no amount of money can give you happiness if you don’t know how and where to spend it. Financial goal setting should be in line with your core values. There’s no cookie-cutter approach to it, so make sure your decisions support your life goals.
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