We all need money for basic survival, whether it’s for food, shelter and clothing, or for education and networking opportunities to connect with people. But does money really buy happiness? This has been a question asked for generations, and the common assumption is that money does, in fact, buy happiness.
Money allows for easy access to many opportunities in life, such as world travel, top-tier medical care and entry into clinical trials, personal trainers and nutritionists who plan and prepare healthy meals—all of which can contribute to a long and prosperous life. Money can also give you the freedom to enjoy hobbies such as concerts, sporting events, ski trips or shopping.
However, money doesn’t always buy true happiness. It can attract fake friends who only use you for financial gain and are only present during good times. Having money can also lead to an obsessive focus on making even more, causing neglect in relationships with family and friends. It’s important to be aware of the risks that come with wealth. Money is best used as a tool and can serve as a stepping stone to higher education and, eventually, a good career.
Many assume that the richest people are always happy, but a 2021 study by Daniel Kahneman and Matthew Killingsworth from Princeton demonstrated that happiness sharply increases with income up to an annual salary of $100,000, after which it plateaus. The benefits of having money certainly outweigh the potential downsides, so while money won’t solve all your problems, it can help you pursue life goals, support family and friends financially, meet your favorite athlete or celebrity and ultimately increase your overall happiness.