Does Money Buy Happiness? [Post 12]

Does Money Buy Happiness?

Yes! But only marginally in most cases… While having enough money to cover basic needs and wants can increase one's happiness, the relationship between money and happiness becomes less clear as we accumulate more wealth.

The Lottery

To demonstrate how fuzzy this line between wealth bringing joy or despair, try answering Dan Gilbert’s question from his TED talk, “The Surprising Science of Happiness.”

Who do you think is happier?

A. A person who won the lottery.

B. A person who is now paraplegic due to a car accident.

Shockingly, data suggests the happiness level of both groups is the same one year after the given occurrences.1 Suggesting the average person to win the lottery experiences a decrease in happiness relative to how they felt before winning.

The Elite

If a sudden increase in wealth doesn’t correlate to happiness, what about those who steadily increase their wealth over time?

Ray Dalio, billionaire hedge fund manager, suggests the following in his book Principles:

Having spent time with some of the richest, most powerful, most admired people in the world, as well as some of the poorest, most disadvantaged people in the most obscure corners of the globe, I can assure you that, beyond a basic level, there is no correlation between happiness levels and conventional markers of success.2

He and many others are believers that meaningful work, experiences, and relationships are far more important attributors to happiness than material possessions.

Summary

While I still enjoy a money DOES buy happiness conversation ending in, “I am sad, but I would rather be sad on a boat” - there is much left to be desired in life above acquiring wealth.

Meaningful work, experiences, and relationships appear to be better predictors of happiness; though I am sure most of us would prefer fortune follow us closely behind.

1. Gilbert, D. (2004). The surprising science of happiness | TED Talk.

https://www.ted.com/talks/dan_gilbert_the_surprising_science_of_happiness

2. Dalio, R., & Bobb, J. (2017). Principles: Life and Work. Simon & Schuster.