Does More Money Make You Happier? Yes, But It's Complicated

Table of ContentsView AllTable of ContentsWhy We Think Money Might Buy HappinessThe Relationship Between Money and HappinessLimitationsThe Role Money PlaysFinding Happiness Beyond Money

Table of ContentsView All

View All

Table of Contents

Why We Think Money Might Buy Happiness

The Relationship Between Money and Happiness

Limitations

The Role Money Plays

Finding Happiness Beyond Money

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We’ve all heard the phrase: “Money can’t buy happiness.” But how true is this, exactly? Growing up poor in rural Idaho, I often took comfort in this idea, reassuring myself that those with more money weren’t necessarily any happier than I was. But sometimes I wondered:Am I just fooling myself?

Of course, money can’t replace thedeep joy and meaningwe find in relationships and experiences. But there’s no denying that financial security feels pretty darn good.

“Money can bring about happiness or a sense of satisfaction that can feel like happiness because it allows security and reduces constant financial anxiety and fear,” explainsSarah Whitmire, LPC-S, ATR-BC, a licensed professional counselor and founder of Whitmire Counseling and Supervision.

A Look AheadMany mental health experts will point out that money alone is no guarantee of happiness. Other factors like relationships, purpose, and personal growth have a more powerful impact.But moneydoeshave some effect on happiness. How much? Keep reading on to learn more about this connection and whether a few extra dollars in your wallet truly translates to ajoyful heart or if the key to happinessis something money can’t buy.

A Look Ahead

Many mental health experts will point out that money alone is no guarantee of happiness. Other factors like relationships, purpose, and personal growth have a more powerful impact.But moneydoeshave some effect on happiness. How much? Keep reading on to learn more about this connection and whether a few extra dollars in your wallet truly translates to ajoyful heart or if the key to happinessis something money can’t buy.

Many mental health experts will point out that money alone is no guarantee of happiness. Other factors like relationships, purpose, and personal growth have a more powerful impact.

But moneydoeshave some effect on happiness. How much? Keep reading on to learn more about this connection and whether a few extra dollars in your wallet truly translates to ajoyful heart or if the key to happinessis something money can’t buy.

When you think of happiness, things like friends, family, and life’s simple pleasures often come to mind—not money. So, where does the idea that money can buyhappinesscome from?

According toKanchi Wijesekera, PhD, a licensed clinical psychologist and clinical director of theMilika Center for Therapy & Resilience, the origin of this idea is multifaceted. She notes that poverty itself is associated with more stress and a higher risk formental health issues.

“There are some caveats, but it can be harder to feel happy when you’re living under thechronic stressof poverty and all it entails,” she says. “You may not have the same time and energy to invest into your well-being as if you were to be financially well-off.”

She stresses that this doesn’t mean people with less financial means aren’t happy or can’t be happy. But it can be more challenging to feel happy compared to someone well-off.

Kristin Anderson, LCSW, a licensed psychotherapist and founder ofMadison Square Psychotherapy, notes that the idea that money can buy happiness is often deeply engrained in many societies.

“These societies often equate financial success with a good life, and it can be easy to get caught up in that idea,” she says. “It’s the idea that financial resources can provide security, comfort, and opportunities, which are all associated with happiness.”

While money certainly does allow people to afford necessities that can improve their quality of life, such as healthcare and education, Anderson says these are no guarantee of greater happiness.

Money can enhance our living conditions, but it does not guarantee genuine happiness, which often comes from personal fulfillment, relationships, and emotional well-being.—KRISTIN ANDERSON, LCSW

Money can enhance our living conditions, but it does not guarantee genuine happiness, which often comes from personal fulfillment, relationships, and emotional well-being.

—KRISTIN ANDERSON, LCSW

Whitmire explains that modern consumer culture has a role in creating this idea. By promoting the idea that buying goods and services can make us happier, we’re more likely to believe that having more equals being more fulfilled.

Dr. Wijesekera notes that our own hard-wired tendencies help fuel these beliefs. Even when we are comfortable, we might think we’d be even happier if we just had a little bitmore, whether it’s a new car, a better job, or a bigger house. (Hint: it doesn’t).

Money alone doesn’tbring happiness, but researchers have found evidence supporting the connection between financial security and increased happiness and well-being.

According to a 2010 study, higher income does indeed help increase subjective life satisfaction as money can help alleviate emotional pain associated withchallenging life eventslike divorce and poor health.Other research supports the link between financial security and happiness. In fact, studies show that security is particularly connected to happiness in societies where financial instability is more common.

The study found that happiness increases don’t plateau once you hit a certain income. Instead, these benefits continue to grow, albeit at a slower pace.

That said, researchersdonote that money isn’t the only factor contributing to happiness. But money undoubtedly plays a huge in creating security, access to resources, and growth opportunities, all of which impact your overall well-being.

How Money Dysmorphia Can Hurt Your Mental Health and Finances

The Limitations of Money in Achieving Happiness

It’s tempting to think that earning a bigger paycheck will be the secret to a fulfilling life. But try not to hinge your happiness on your bank account. Having more money may help increase happiness, yes, but can also bring about diminishing returns if the pursuit of extra cash affects your quality of life.

Studies suggest that beyond a certain income threshold—often cited around $75,000 to $100,000 annually—the additional happiness gains from extra income begin to level off. A boost in salary can make a big difference if you are struggling with basic needs. But you’re less likely to notice the extra income if you are already comfortable or doing well.

We like to think that money solves all our problems, but the pursuit of financial rewards can be more harmful than good, especially if it costs ushealthy relationshipsand social connections. Sure, having extra cash would be great, but if it means sacrificing meaningful connections with others, are the benefits even worth it?

Our emotional health and well-being thrive onstrong relationshipsand social interactions. What good are financial rewards if they’re overshadowing your relationships and experiences?

I know money solvesa lotof problems, but it can’t buy a sense of purpose and meaning. Think of it like this: if your job is financially rewarding but emotionally draining,burnoutis inevitable. You can’t appreciate all your hard work and reap the financial benefits if you’re emotionally and mentally exhausted. And no amount of money can make your brain or body feel any less tired.

The Role of Money in Different Aspects of Life

The ability to afford what we want and need is often linked to a higher quality of life. Feeling financially secure can reduce anxiety since you’re less worried about how you’ll pay for life’s expected and unexpected expenses.

“We know financial stability also affords improved access to healthcare, leisure activities, and opportunities for personal growth, all of which contribute to better mental and emotional well-being,” Dr. Wijesekera says.

Financial stresscan leave you in a constant state offight or flight mode, she adds. Access to more money and resources shifts you from survivor mode into a space where you can focus on hobbies, friends, or things that make you happy.

Not having to worry about money allows someone to think about their mental health. They have time and an advantage to think about how they are feeling and doing. They do not have a survivalist mentality and can spend time thinking about their pursuits and how they can thrive.—SARAH WHITMIRE, LPC-S, ATR-BC

Not having to worry about money allows someone to think about their mental health. They have time and an advantage to think about how they are feeling and doing. They do not have a survivalist mentality and can spend time thinking about their pursuits and how they can thrive.

—SARAH WHITMIRE, LPC-S, ATR-BC

In other words, not having to stress about money is what contributes to happiness the most.

“Imagine the difference between constantly feeling stressed about finances versus having peace of mind knowing your needs are met,” Anderson says. “While money itself is not a direct source of happiness, the security it provides can create a more stable environment for mental health to flourish.”

RecapWhile it’s important to recognize the relationship between money and happiness, it’s not a silver bullet. True happiness comes from the often intangible things money can’t guarantee including happy relationships, a sense of purpose, and feeling connected to a community.

Recap

While it’s important to recognize the relationship between money and happiness, it’s not a silver bullet. True happiness comes from the often intangible things money can’t guarantee including happy relationships, a sense of purpose, and feeling connected to a community.

Strategies for Finding Happiness Beyond Money

There’s no question that financial security can offer comfort and ease stress, but it’s also true that the things that bring us happiness are immaterial.

Some research-backed ways to bring more happiness to your life (that, fortunately, don’t cost money):

Cultivate Positive Relationships

Research has consistently shown that having strong, supportive relationships is essential for mental health and life satisfaction. One 2023 study, in particular, found a significant positive relationship betweensocial supportand increased happiness.

Focus on cultivating stronger relationships with your family, friends, and community to gain greater emotional support and a sense ofbelonging. “Engaging in meaningful interactions and shared activities with loved ones can create lasting memories and strengthen bonds, leading to a sense of fulfillment and happiness that material possessions often cannot match,” Whitmire says.

Find Meaning and Purpose

Pursuing asense of purposeand meaning in your life can also play a pivotal role in your happiness and life satisfaction.

Interestingly, some research suggests that feeling a sense of purpose might be connected to financial success as well. In one study, people who felt a sense of purpose in their work earned more money than those who felt their work lacked meaning.(Of course, earning more might also help make your work feel more meaningful, too).

Some experiences like hobbies, volunteer work, and engaging activities can help you find purpose. Dr. Wijesekera suggests exploring inexpensive or free hobbies such as drawing, reading library books, and cooking new recipes. Being open to new experiences can bring a profound sense of fulfillment and meaning that will ultimately help you feel happier.

Practice Gratitude

Gratitudecan be a powerful antidote to feelings of sadness and negativity. That’s because regularly reflecting on the things you love and appreciate can help shift your focus away from what might be lacking. Research has found that gratitude interventions such asgratitude journalingincrease positive moods, subjective happiness, and life satisfaction.

“Taking time each day to appreciate the good things in your life, big or small, can shift your focus from what you lack to what you have,” Anderson says. “By acknowledging the positive aspects of your life, you can significantly boost your mood and overall well-being.”

Tip From a Clinical PsychologistPracticing habits such as maintaining a gratitude journal, verbal affirmations, giving thanks, or reflecting on daily blessings can reduce stress and profoundly elevate one’s well-being.—KANCHI WIJESEKERA, PHD

Tip From a Clinical Psychologist

Practicing habits such as maintaining a gratitude journal, verbal affirmations, giving thanks, or reflecting on daily blessings can reduce stress and profoundly elevate one’s well-being.—KANCHI WIJESEKERA, PHD

Practicing habits such as maintaining a gratitude journal, verbal affirmations, giving thanks, or reflecting on daily blessings can reduce stress and profoundly elevate one’s well-being.

—KANCHI WIJESEKERA, PHD

Practice Mindfulness and Other Self-Care Strategies

Mindfulnessand other self-care practices are powerful tools for fostering better emotional well-being. Mindfulness centers on being fully present and engaged in the present moment without worrying about the past or future.

One study found that mindfulness was associated with various positive outcomes including higher levels of happiness and decreased anxiety and depression.Other self-care activities likemeditation, exercise, andadequate sleepare also low-cost or free ways to enhance happiness.

Dr. Wijesekera recommends trying free apps or online videos to learn meditation techniques. She also says that simple mindfulness exercises likedeep breathingandmindful walkingcan be beneficial.

Spending Time in Nature

Dr. Wijesekera recommends spending time outdoors in nature to help alleviate some of the physiological effects of stress. She points to research on the Japanese practice of shinrin-yoku or “forest bathing.”  This report found that spending just 20 minutes walking outdoors can lower your heart rate, blood pressure, andcortisollevels (a stress hormone).

“Visit local parks, hiking trails, or beaches, which are often free,” she says. “Gardening, even in small spaces or community gardens, can also be a low-cost way to connect with nature.”

Help Others

Anderson also recommends volunteering and finding ways to assist others in your life. “Volunteering your time or doing something kind for someone else can be incredibly rewarding,” she says. “It strengthens your sense of community and purpose, and seeing the positive impact you have on others can be a great source of happiness.”

RecapWhile evidence suggests that money increases happiness, it isn’t the only thing that brings joy. Plenty of things bring fulfillment to your life that doesn’t involve boosting your financial bottom line.Strengthening relationships, going after meaningful goals, and caring for yourself are all proven strategies for improving your happiness and well-being. Focusing on those areas can help you create a more fulfilling life, regardless of your finances.

While evidence suggests that money increases happiness, it isn’t the only thing that brings joy. Plenty of things bring fulfillment to your life that doesn’t involve boosting your financial bottom line.Strengthening relationships, going after meaningful goals, and caring for yourself are all proven strategies for improving your happiness and well-being. Focusing on those areas can help you create a more fulfilling life, regardless of your finances.

While evidence suggests that money increases happiness, it isn’t the only thing that brings joy. Plenty of things bring fulfillment to your life that doesn’t involve boosting your financial bottom line.

Strengthening relationships, going after meaningful goals, and caring for yourself are all proven strategies for improving your happiness and well-being. Focusing on those areas can help you create a more fulfilling life, regardless of your finances.

Remember, happiness doesn’t come from a single source. By incorporating these strategies into your life and building a fulfilling lifestyle, you can find joy and contentment, regardless of your financial situation.—KRISTIN ANDERSON, LCSW

Remember, happiness doesn’t come from a single source. By incorporating these strategies into your life and building a fulfilling lifestyle, you can find joy and contentment, regardless of your financial situation.

Takeaways

The answer to the question of whether money can buy happiness is, well, complicated. Research shows that money can alleviate stress and improve life satisfaction. But those benefits will start to taper off after a certain point. A higher income level provides financial security and access to resources and opportunities but doesn’t guarantee enduring happiness.

Happiness isn’t just about what’s in your bank account. Finding happiness is an ongoing process that involves many facets. And while there’s nothing wrong with pursuing financial well-being, don’t sacrifice your mental health in the long run. Instead, find a balance between your financial pursuits and relationships and experiences. That, we say, is the best approach for unlocking lasting happiness.

How Your Money Affects Your Mental Health

8 SourcesVerywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Kahneman, D., & Deaton, A. (2010).High income improves evaluation of life but not emotional well-being.Proceedings of the National Academy of Sciences,107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107Ek, C. (2017).Some causes are more equal than others? The effect of similarity on substitution in charitable giving.Journal of Economic Behavior & Organization,136, 45–62. https://doi.org/10.1016/j.jebo.2017.01.007Buttrick, N., & Oishi, S. (2023).Money and happiness: A consideration of history and psychological mechanisms.Proceedings of the National Academy of Sciences,120(13), e2301893120. https://doi.org/10.1073/pnas.2301893120Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023).The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran.Heliyon,9(9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016).The value of a purposeful life: Sense of purpose predicts greater income and net worth.Journal of Research in Personality,65, 38–42. https://doi.org/10.1016/j.jrp.2016.07.003Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019).Positive psychology and gratitude interventions: A randomized clinical trial.Frontiers in Psychology,10, 584. https://doi.org/10.3389/fpsyg.2019.00584Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021).Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women.International Journal of Environmental Research and Public Health,18(3), 925. https://doi.org/10.3390/ijerph18030925Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010).The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan.Environmental Health and Preventive Medicine,15(1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

8 Sources

Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Kahneman, D., & Deaton, A. (2010).High income improves evaluation of life but not emotional well-being.Proceedings of the National Academy of Sciences,107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107Ek, C. (2017).Some causes are more equal than others? The effect of similarity on substitution in charitable giving.Journal of Economic Behavior & Organization,136, 45–62. https://doi.org/10.1016/j.jebo.2017.01.007Buttrick, N., & Oishi, S. (2023).Money and happiness: A consideration of history and psychological mechanisms.Proceedings of the National Academy of Sciences,120(13), e2301893120. https://doi.org/10.1073/pnas.2301893120Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023).The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran.Heliyon,9(9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016).The value of a purposeful life: Sense of purpose predicts greater income and net worth.Journal of Research in Personality,65, 38–42. https://doi.org/10.1016/j.jrp.2016.07.003Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019).Positive psychology and gratitude interventions: A randomized clinical trial.Frontiers in Psychology,10, 584. https://doi.org/10.3389/fpsyg.2019.00584Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021).Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women.International Journal of Environmental Research and Public Health,18(3), 925. https://doi.org/10.3390/ijerph18030925Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010).The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan.Environmental Health and Preventive Medicine,15(1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Kahneman, D., & Deaton, A. (2010).High income improves evaluation of life but not emotional well-being.Proceedings of the National Academy of Sciences,107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107Ek, C. (2017).Some causes are more equal than others? The effect of similarity on substitution in charitable giving.Journal of Economic Behavior & Organization,136, 45–62. https://doi.org/10.1016/j.jebo.2017.01.007Buttrick, N., & Oishi, S. (2023).Money and happiness: A consideration of history and psychological mechanisms.Proceedings of the National Academy of Sciences,120(13), e2301893120. https://doi.org/10.1073/pnas.2301893120Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023).The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran.Heliyon,9(9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016).The value of a purposeful life: Sense of purpose predicts greater income and net worth.Journal of Research in Personality,65, 38–42. https://doi.org/10.1016/j.jrp.2016.07.003Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019).Positive psychology and gratitude interventions: A randomized clinical trial.Frontiers in Psychology,10, 584. https://doi.org/10.3389/fpsyg.2019.00584Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021).Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women.International Journal of Environmental Research and Public Health,18(3), 925. https://doi.org/10.3390/ijerph18030925Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010).The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan.Environmental Health and Preventive Medicine,15(1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

Kahneman, D., & Deaton, A. (2010).High income improves evaluation of life but not emotional well-being.Proceedings of the National Academy of Sciences,107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107

Ek, C. (2017).Some causes are more equal than others? The effect of similarity on substitution in charitable giving.Journal of Economic Behavior & Organization,136, 45–62. https://doi.org/10.1016/j.jebo.2017.01.007

Buttrick, N., & Oishi, S. (2023).Money and happiness: A consideration of history and psychological mechanisms.Proceedings of the National Academy of Sciences,120(13), e2301893120. https://doi.org/10.1073/pnas.2301893120

Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023).The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran.Heliyon,9(9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529

Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016).The value of a purposeful life: Sense of purpose predicts greater income and net worth.Journal of Research in Personality,65, 38–42. https://doi.org/10.1016/j.jrp.2016.07.003

Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019).Positive psychology and gratitude interventions: A randomized clinical trial.Frontiers in Psychology,10, 584. https://doi.org/10.3389/fpsyg.2019.00584

Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021).Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women.International Journal of Environmental Research and Public Health,18(3), 925. https://doi.org/10.3390/ijerph18030925

Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010).The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan.Environmental Health and Preventive Medicine,15(1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

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