Money Can't Buy Happiness! Or CAN It?

I disagree with the theory that more money leads to less happiness - or at least, diminishing returns. I think these kinds of "financial myths" keep people poor. People have so many wrong concepts about the wealthy:

~ Wealthy people got that way by lying, cheating and stealing.

~ For me to become rich, I have to work really, really hard all the time and never see my family.

~ Rich people are snobby. All my family and friends would abandon me and I wouldn't want to be around them.

~ There is some kind of cosmic balance where if I become "lucky" in money, my life will be balanced with some kind of horrible misery in another area.

~ If I were wealthy no one would like me just for me. They'd all be after my money and I'd never have any real friends.

~ All those expensive clothes and furnishings are itchy and uncomfortable. I'd never want to live like that.

~ Money just bring problems and more headache, more to worry about. I don't know how to manage investments. Someone would just steal all the money from me.

For the sake of the exercise, I can still list ways that money can help me achieve my goals and where time is mostly needed. Note that most of my goals require both.

Ways MONEY can enhance my favorite activities:

* Giving money to charities, as 'seed' to new small businesses, and to support artists.

* Build my own house. I can do this frugally but it will still take money.

* Travel. Again, I can do this frugally, but will still need some money.

Ways direction of TIME can enhance my life:

* Be fun with hubby and DD. It doesn't take a lot of money to laugh.

* Volunteer either at DD's school or in the community. Volunteering IS the definition of giving the gift of time.

* Hiking. There is no way to do this virtually. It takes getting up off the coach and fortunately most hiking trails are free.

I really enjoyed this.  I can agree that more money would end the frustration of having to balance healthy choices with what we can afford.  I would love to be able to take a vacation and not have to worry about how much I was spending. I would love to give to the causes I support. While I can agree that money doesn't buy happiness the lack of money can sure curtail doing the activities that bring you joy.

Money:

* Spend on an Exercise Class to take with a Friend

* Spend on Outside Activities with Dh (we tend to stay home all the time)

* Spend on a Hobby/Activity that would enhance my life (haven't figured what yet)

Time:

* Spend more quality time with Dh

* Take a Bible Study Class at Church

* Find a Fun Volunteer Opportunity

Here's a couple I thought of:

Time

make the time to sew something just for fun

spend time reading with my kids

menu plan

Money

buy a negative scanner

buy some clothes that I love (and that fit)

family vacations

ETA: get a national parks pass

As someone who's average household income went down to a third of what we used to have, with most of the same expenses and expectations, I can say I have DEFINITELY learned that money DOES "buy" happiness as far as it buying the actual TIME.  That money bought the times I spent visiting my parents in Florida.  That money bought the fact that I was a stay at home mom before this.  That money bought the insurance that I took for granted...both health insurance for the NOW...and life insurance for the just in case.  That money bought...well, you have no idea how many things you do that are "quality time" that that money pays for.  Even things you might think of as free actually DO involve money in some way.  A trip to the park...gas, sunscreen, water bottles, whatever.  A day of crafts.  Where did the supplies come from?  And what do you do when they run out for replacements? 

I don't miss the big house or the new car or the fancy whatever.  I miss the ability to volunteer MY TIME in my children's classrooms.  I miss the ability to have the TIME to have lunch with my kids at school once in a while.  I miss having the TIME to take a few days to go visit my mom and dad.  I miss TIME with my family more than anything.

So while I don't think you have to have lots of money to be happy, I DO think it most DEFINITELY helps in more ways than we ever give it credit.

Quote:

Originally Posted by Kim 

I think the main point I was trying to make (and that most studies I've looked at support) is that if you're jumping from a $25K yearly income to a $50 yearly income, it has a bigger impact on your happiness quotient than if you went from a $125K yearly income to a $150K yearly income.  $25K just doesn't mean as much the more you make.   One of my "take-aways" from my research (I've actually read extensively on the topic of the psychology of money) is that once you're financially secure, however you personally define that, is that what you do with your time has a bigger impact on your quality of life than trying to make more money. 

 

Does that make sense? 

Yes, it makes sense except the example is flawed. If I make $25K a year and go to $50K a year, there is a big impact in my happiness quotient (having actually done this in the last year, I'm not 100% sure about this, though.) In this example, I doubled my income or increased it by 100%. Now if I make $125K a year and increase it by 100% - the same percentage as the first example - then I'm making $250K a year and have a high likelihood that my happiness quotient will increase dramatically again. You're right that an increase in $25K is relative.

And you're right that what we do with our TIME has a bigger impact on our happiness, but that is true no matter how much money we make.

One question I'm dying to ask is, "What is a lot of money to you?" I would ask this without context. For instance, you can't say, "Well it depends. $100 for dinner is a lot of money but $100 for a car isn't." No, just in terms of general thoughts about money, what is the amount that makes you go, "Hmmm, that's a lot of money."