Walk # 56: Money Can Buy Happiness. Just Kidding. Sort of.

We’ve all heard it, over and over and over: money can’t buy happiness. But, well, let’s face it—rich people look happier. They look like they take more vacations and have more adventures. They look healthier. They dress better. They live in more beautiful homes and drive fancier cars. They have people to clean their homes and cook their meals. All in all, they look happier.

For those of us who struggle to figure out how to make our paychecks cover the bills each month, dread the mysterious rattle in our cars that suggests something bad is coming, and have no idea how we are going to help our kids pay for college—much less retire one day—well, it sure looks like money buys happiness. Or at least a sense of security that allows you to pursue happiness.

Over the past couple of decades, there has been a lot of research on happiness, including whether or not money buys happiness. Here’s what they found.

If you do not have enough money to cover your basic necessities and to feel secure, then yup, more money is likely to help make you a bit happier. This means that if you are genuinely struggling every month, either more money in or less money out would likely make you a little happier.

However, once you have achieved a level where your income covers your essentials, more money is unlikely to have an impact on your happiness.

That’s not to say that with more money you might dress better, take more vacations or drive a fancier car, it is just that the research has consistently shown that those things will not make you happier. I swear, it’s true.

There appears to be several reasons why. 

First, ultimately, things don’t make people happy. You get used to your stuff and, once the initial thrill of buying something new and fancy is over, research shows that stuff doesn’t make you happy. Let me repeat that: stuff does not make you happy.

Second, as you acquire more money, stuff, and stature, research shows that you will quickly adjust to your new level and once again want more. You will continue to move the goal line and continue to convince yourself that you will be happy when you hit that next level. But you won’t.

Third, if you are looking at others who have more and engage in “compare and despair” you will never have enough because there will always be someone who dresses better, takes more vacations, or drives a fancier car. Always. 

Now that’s not to say that striving is bad. Wanting more, dreaming big, and working hard is the stuff of a fulfilling life. But, fancy cars aside, I promise: more money does not equal more happiness.

On today’s walk, think about your beliefs about money and happiness. Do you have enough money to cover your basic expenses? If not, can you adjust what you spend (fewer morning lattes) or what you make (side hustle anyone)?

More importantly, do you believe that more money will make you happier? Do you find yourself engaging in rounds of compare and despair, especially while scrolling social media?

Finally, consider the things that are most important to you, that you love about your life and for which you are grateful (yes, here we go on gratitude again). How many of those things are based on how much money you have? If you are like most people, not many.