Who Says ‘Money Can’t Buy Happiness?’ Here Are 11 Ways It Can (2024)

Money / Wealth

8 min Read

By Cameron Huddleston

Who Says ‘Money Can’t Buy Happiness?’ Here Are 11 Ways It Can (1)

The Beatles said money can’t buy love, but can it buy happiness? New research says yes, at least up to a point — but that point keeps moving.

According to a study published in March in the Proceedings of the National Academy of Sciences journal, most people experience an increase in emotional well-being as they earn more income, but only up to a certain level. The report revises the dollar amount established in earlier research by one of the new study’s co-authors, Nobel Prize winner Daniel Kahneman. In 2010, Kahneman published an influential and widely cited study that found happiness increases with earnings up to roughly $75,000, but that wealth has little impact on happiness beyond that.

But inflation continues to take its toll, and today, Kahneman and his fellow researchers believe that happiness increases with money up to around $500,000.

Whether it’s 75 grand or a half-million bucks, dollars do make a difference — and personal finance experts know it. GOBankingRates surveyed popular money pros to learn more about the ways in which cash affects emotional well-being — and while money might not be able to buy you love, life is certainly better with it than without it.

Here’s why.

Money Makes Frugality a Choice

When Stefanie O’Connell, blogger and author of “The Broke and Beautiful Life,” started making enough money to feel comfortable, frugality became a choice rather than a necessity.

Now, money buys her options whether she chooses to spend it or not.

“Being limited in what you can buy, do, give or experience because of insufficient funds is undeniably frustrating,” she said. “Money is a tool that can be leveraged to lift those limitations. Having that kind of flexibility in my finances, and in my life in general, makes me happy and grateful every day.”

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Money Can Buy Experiences

Money can buy stuff, or it can buy memories — and the latter is almost always more priceless and irreplaceable than the former.

“I believe money brings us happiness because it allows us to experience the things we dream of doing,” said Lance Cothern, a certified public accountant and founder of Money Manifesto. “Without money, many of us would never be able to experience that once-in-a-lifetime trip to Europe or Alaska.”

Money Enables Generosity

According to the Cleveland Clinic, there’s a direct connection between charitable giving and physical and mental well-being — and it’s much more than just good vibes. The act of giving can lower your blood pressure, reduce stress, increase longevity and flood your body with serotonin, dopamine and oxytocin.

You don’t need money to engage in charity, but financial security sure makes a philanthropic habit easier to maintain — and if you practice giving, chances are you’ll pass the tradition down to your children just as you would generational wealth.

“A recent study conducted by Indiana University explored giving attitudes across generations of high-net-worth families,” said Peter J. Klein, founder and chief investment officer of ALINE Wealth and author of “A Passion For Giving,” a tutorial on charity-based legacy wealth planning.

“The study found that, ‘Parents’ decisions to give to charity influence their children’s decisions to give; parents who give are more likely to have children who give. Parent volunteering has a two-fold impact on children; parents who volunteer have children who volunteer and give.”

Money Provides Stability and Independence

Alexis Schroeder chronicles her journey to a happy, healthy lifestyle on FITnancials. As someone who has provided for herself since the age of 16, Schroeder knows firsthand how money can provide independence and the peace of mind that comes with having control over your own financial destiny.

“Money brings me stability and security,” she said. “I’m able to take care of myself financially without relying on anyone else to keep me secure.”

Money Buys Protection From the Unexpected

Michelle Schroeder-Gardner knows a thing or two about making money. She was able to pay off nearly $40,000 in student loan debt in just seven months by working side jobs in addition to a full-time job while also creating the blog Making Sense of Cents.

She has since earned more than $5 million blogging online.

Schroeder-Gardner said that money has brought her happiness because, by managing it well, she’s been able to safeguard herself against the stress of unexpected expenses. “I am saving more money than ever and have been able to build my retirement and emergency funds,” she said.

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Money Makes Life Easier

Philip Taylor, a certified public accountant, created the PT Money blog in 2007 to share his experiences managing his money and learning about personal finance. Sixteen years later, he’s the one teaching his followers how to take control of their own finances.

“Money — or my mastery of it — certainly has made my life easier,” Taylor said. “I have a ton of options, freedoms and protections. But an easy life doesn’t equal happiness. I have to choose that daily.”

Money Lets You Pursue Your Passions and Dreams

Jon Dulin dug himself out of $10,000 in credit card debt and now plans to retire by 50. So, the creator of the Money Smart Guides blog has seen for himself how money can give you more options in life.

“For me, money has brought happiness in this way,” Dulin said. “Because my wife and I worked hard and saved a lot every month, I took advantage of starting my own business. Had we not saved as we did, I wouldn’t have that option.”

Money Allows You To Help Friends in Need

William Charles, an investment banker and founder of Doctor of Credit, has found that money makes him happy when he can use it to make others happy. In fact, Charles once helped his friend pay off credit card debt — and the friend paid him back over time.

“It’s an amazing feeling to be able to help somebody you deeply care about when they are in relatively small financial trouble that is causing them great stress,” he said. “It meant the world to him, and it was a relatively small monetary gesture from me.”

Money Is the Antidote for Financial Stress

Nick Loper is the creator of Side Hustle Nation, a site that showcases his successes and failures with side businesses as well as lessons from other entrepreneurs. He has found that money can buy happiness in more than one way.

“The first is the obvious — material comforts, food, shelter, entertainment, travel, etc.,” said Loper. “But the second way is maybe even more important, and that’s the mental anguish it helps dissolve. If you have a healthy savings cushion, you live with far less financial anxiety than someone living paycheck to paycheck, because you know you can weather a job loss, a trip to the ER or unforeseen car repairs.”

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Money Makes All Stages of Life More Enjoyable

Ben Edwards, author of “Get Out of Debt Like the Debt Heroes,” has learned money can amplify happiness throughout all of life’s chapters.

“For example, right now we’re raising our three kids,” Edwards said. “It makes us happy to be able to afford to pay for the extracurricular things that help them develop and learn.”

Because he doesn’t know what will make him happy in the next phase of life, he said it’s important to save to have the money to pay for what will bring him joy when that phase arrives.

Money Offers Freedom

Tiffany “The Budgetnista” Aliche is an award-winning teacher of financial empowerment and founder of the Live Richer Challenge. Yet, she doesn’t believe that money brings happiness directly.

“I believe that money brings options and greater freedom to choose,” she said. “It’s through those choices that happiness is found. Money has enabled me to travel the world, give back via donating and start my own business by doing my passion. It’s those choices that have made me happy, not the money itself.”

Whether you hope to retire a millionaire at 65 or work a job you love long into your golden years, you want the choice to be yours and not the result of financial necessity. Make smart money decisions now and enjoy greater financial freedom down the line.

Andrew Lisa and Gabrielle Olya contributed to the reporting for this article.

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Who Says ‘Money Can’t Buy Happiness?’ Here Are 11 Ways It Can (2024)

FAQs

Who said that money cannot buy happiness? ›

Some new arguments for higher taxes and government spending rest on the claim, supposedly established by empirical studies and by Adam Smith, that money doesn't buy happiness.

Who created the quote money can't buy happiness? ›

“Money buys everything, except morality and citizens” a quote by Rousseau wrote in 1750, (Vanover, 2021)could be taken as the origin for the very commonly used saying “Money can't buy Happiness”, it explains the limitation money has upon emotional needs.

What is the actual quote money doesn't buy happiness? ›

Money can't buy happiness, but it can make you awfully comfortable while you're being miserable.

Who said whoever said that money can t buy happiness simply didn t know where to go shopping? ›

"Whoever said money can't buy happiness simply didn't know where to go shopping." - Gertrude Stein | Instagram.

What did Nietzsche say about money? ›

Nietzsche criticizes the modern money economy, linking it to decadence, loss of values, and the shift from God to money as a source of power and conscience.

What is a famous money and happiness quote? ›

By Adela Belin
  • Money never made a man happy yet, nor will it. ...
  • A wise person should have money in their head, but not in their heart. ( ...
  • I love money. ...
  • It's not the employer who pays the wages. ...
  • Empty pockets never held anyone back. ...
  • Before you speak, listen. ...
  • It doesn't matter about money; having it, not having it.
Nov 25, 2020

What did Mark Twain say about money? ›

Quote by Mark Twain: “The lack of money is the root of all evil.

Who said money can't buy anything? ›

George Lorimer Quote - Money Can't Buy Everything - Due.

Who said money can t buy you happiness but it does bring you a more pleasant form of misery? ›

“Money can't buy you happiness”, said the actor and comedian Spike Milligan, “but it does bring you a more pleasant form of misery”.

Why does money not buy happiness? ›

Happiness is not dependent on financial wealth, rather in life's simple and meaningful moments. When we strive for the pursuit of money, we'll overlook time with our loved ones, pursued passions, and contributions to the well-being of others.

Why do we say money can't buy happiness? ›

The saying means that true happiness comes from within, not from possessions that can be bought. Beyond the ability to pay your bills, happiness is a state of mind that is short-lived when you base it on physical objects and the numbers in an investment portfolio.

Why money doesn t buy happiness is wrong? ›

Loss of control and uncertainty are two reliable sources of stress and unhappiness for the human brain. Ultimately, rather than “money can't buy you happiness”, it might be better to say “money can buy you safety and security”, and these things make it easier for us to be happy.

What did Mark Twain say about happiness? ›

Happiness is not something ready made. It comes from your own actions. There is only one way to happiness and that is to cease worrying about things which are beyond the power of our will. Everything has its wonders, even darkness and silence, and I learn, whatever state I may be in, therein to be content.

What did Joseph Campbell say about happiness? ›

The way to find out about happiness is to keep your mind on those moments when you feel most happy, when you are really happy — not excited, not just thrilled, but deeply happy.

What is the quote Joseph Smith said about happiness? ›

As the Prophet Joseph Smith told us, “Happiness is the object and design of our existence; and will be the end thereof, if we pursue the path that leads to it; and this path is virtue, uprightness, faithfulness, holiness, and keeping all the commandments of God” (Teachings of the Prophet Joseph Smith, sel.

Why money can t buy true happiness? ›

Happiness is not dependent on financial wealth, rather in life's simple and meaningful moments. When we strive for the pursuit of money, we'll overlook time with our loved ones, pursued passions, and contributions to the well-being of others.

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