You don’t want to be rich—you want to be happy. Money can certainly
help you achieve your goals, provide for your future, and make life more
enjoyable, but merely having the stuff doesn’t guarantee fulfillment.
"Happiness,
not gold or prestige is the ultimate currency.”
—Tal Ben-Shahar
How Money Affects Happiness
The big question is, “Can money buy happiness?”
There’s no simple answer.
It seems natural to assume that rich people will
be happier than others,
But “Money
is only one part of psychological wealth, so the picture is complicated.”
There is a strong
correlation between wealth and happiness. Rich people and nations are happier
than their poor counterparts; don’t let anyone tell you differently. But they
note that money’s impact on happiness isn’t as large as you might think. If you
have clothes to wear, food to eat, and a roof over your head, increased
disposable income has just a small influence on your sense of well-being.
So, yes, money can
buy some happiness, but as you’ll see, it’s just one piece of the puzzle. And
there’s a real danger that increased income can actually make you miserable—if
your desire to spend grows with it. But that’s not to say you have to live like
a monk. The key is finding a balance between having too little and having too
much—and that’s no easy task.
The Fulfillment
Curve
More spending does
lead to more fulfillments—up to a point. But spending too much can actually
have a negative impact on your quality of life suggest that personal
fulfillment—that is, being content with your life—can be graphed on a curve
that looks like this:
This Fulfillment Curve has four sections:
·
Survival. In this part of the
curve, a little money brings a large gain in happiness. If you have nothing,
buying things really does contribute to your well-being. You’re much happier
when your basic needs—food, clothing, and shelter—are provided for than when
they’re not.
· Comforts. After the basics are
taken care of, you begin to spend on comforts. These purchases, too, bring increased
fulfillment. They make you happy, but not as happy as the items that satisfied
your survival needs. This part of the curve is still positive, but not as steep
as the first section.
·
Luxuries. Eventually your
spending extends from comforts to outright luxuries. These things are more than
comforts—they’re luxuries, and they make you happy. They push you to the peak
of the Fulfillment Curve.
·
Overconsumption. Beyond the
peak, Stuff starts to take control of your life. But none of this makes you any
happier. In fact, all of your things become a burden. Rather than adding to
your fulfillment, buying new Stuff actually detracts from it.
The Sweet Spot on the Fulfillment Curve is in the
Luxuries section, where money gives you the most happiness: You’ve provided for
your survival needs, you have some creature comforts, and you even have a few
luxuries. Life is grand. Your spending and your happiness are perfectly
balanced. You have enough.
It’s Not about the Money
For another attempt to quantify well-being, take a look at this happiness formula from Dilbert creator Scott Adams: http://tinyurl.com/happy-dilbert.