happy money

Does Money Make You Happier?

Whether money makes you happy is a question which is widely debated and spoken about.  Research has suggested that money does make us happier, but only to a certain extent. Scientific evidence points out the fact that once we reach a comfortable lifestyle, we don’t need to worry about funding for our basic needs and essentials. But, having more money doesn’t bring more happiness.

How Money Makes You Happier

Having money doesn’t automatically equal pure happiness. The amount of money that any individual depicts as enough to make them happy can vary massively. So £300 could mean a lot to one person, whereas, it could not be sufficient enough for another. Not having much money can bring down your physical and mental health. Some ways consist of:

  • Less stress and worry about paying bills and affording essentials
  • You have more freedom to do what you want to do
  • More control over your time
  • Able to afford things more of the things that you want to buy
  • Gives you more opportunities

What Have Experts Got to Say?

Experts found that the ideal annual income for us to be happy is between £43,000 and £54,000.  The maximum amount for happiness is around £68,000 but scientists warn further increases in income are associated with reduced happiness. Although, even if you have a lower income, you can still be happy – despite all the findings. Happiness is what you want it to be: Be that taking your child to their first sports game, or making a loved one a gift with your own bare hands.

According to research, the average millionaire is no happier than somebody earning £75,000. Although millionaires are able to buy more things and live luxury lifestyles, this doesn’t mean it brings them any more happiness than people who can’t afford the same things. Depending on the person, happiness comes from different things. For example, a person buying something special for themselves brings them happiness. Whereas for another, buying things for somebody else brings them greater happiness.

Spending Money

For many people, spending their money in a smart way makes them happy. They feel that they are being rewarded after being able to spend the money they have earned. For example, being able to buy something which you have been saving up for makes you feel like you have achieved something.

We have discovered that when people give to others it makes us feel better about ourselves. This is partly to do with the social status it gives people but also to do with the way it makes the other person feel.  For example, it is known that buying lunch for a stranger, giving to the homeless or helping anyone regardless of whether you know them or not, gives you a boost of happiness because you know that it is making their day and making them happy.

Our Help

We understand that money only creates happiness to a certain extent. So, if you’re unhappy and having money troubles, you can seek money advice from the Money Advice Service. Or if you’re in need of a small boost to help fund your bills for the month, take a look at how our payday loans work.