The question of whether money brings happiness has accompanied mankind for centuries. In a society where consumption and economic success are seen as symbols of well-being, it is not strange to wonder to what extent wealth really influences our emotional state. Science has studied this relationship in depth, and the results are more nuanced than we might imagine.
Money does help… but only up to a point.
Research in psychology and economics, such as that of Daniel Kahneman and Angus Deaton (Nobel Prize in Economics), shows that having more income improves quality of life, but only up to a certain level. Covering basic needs – food, housing, health and safety – has a clear impact on happiness.
However, above a certain income threshold, the curve flattens. Having more money does not always translate into greater satisfaction, but rather into a transient sensation that soon adjusts to a new “normal level”. This phenomenon is known as hedonic adaptation: we quickly get used to luxuries, and they stop giving us the same joy.
What really matters about money.
Studies agree that money can increase happiness if used strategically:
- Invest in experiences. Trips, concerts or group activities tend to generate more lasting memories than the purchase of material objects. Research by Thomas Gilovich (Cornell University) found that experiences generate more positive and lasting memories than objects, which quickly depreciate in emotional value.
- Saving to reduce stress. Having a financial cushion reduces anxiety related to unforeseen events.
- Spending on others. Surprisingly, spending on friends, family or charitable causes generates more satisfaction than spending only on oneself. A study by Elizabeth Dunn (University of British Columbia) published in Science revealed that people who spent money on others reported higher levels of happiness than those who spent money on themselves.
- Buying time. Other work by Dunn in 2017 showed that hiring services that free us from tasks we don’t enjoy (such as cleaning or errands) allows us to spend more hours on what we really enjoy.
Happiness depends on more than money.
While money facilitates comfort and security, science indicates that true happiness is more related to other factors:
- Strong social relationships. Connection with friends and family is one of the greatest predictors of well-being.
- Physical and mental health. Taking care of your body and mind directly impacts your mood.
- Life purpose. Having goals and feeling that life has meaning brings more satisfaction than any extra income.
- Free time and balance. A large bank account loses value if there is no room for enjoyment.
A famous 2010 study by Daniel Kahneman and Angus Deaton at Princeton University looked at more than 450,000 people in the United States. The results were revealing:
- The level of happiness increased as income rose, but only up to $75,000 per year (about €68,000 at the time).
- From that point on, more money did not generate more daily happiness, although it did generate greater satisfaction with life in the long run.
Long-term research suggests that money is only one piece of the puzzle. The Harvard Study of Adult Development, which has been following hundreds of people for more than 80 years, concludes that the most important determinant of happiness is the quality of social relationships, not accumulated wealth.
In addition, physical and mental health, sense of purpose and leisure time turn out to be more powerful predictors of well-being than any increase in salary.
Conclusion.
Money can contribute to happiness, but it is not the ultimate key. Its greatest value lies in guaranteeing stability and freedom to choose how we want to live. However, science makes it clear that true happiness depends on how we use that money and, above all, on non-material factors: our relationships, our health and our purpose in life.
In short, money helps, but happiness can never be bought: it is built.
