Money and Happiness – How Money Can Buy Happiness

Often the question asked is, can money buy happiness?  While the answer I am given from my well-heeled clients and friends typically begins with a defensive sounding no, when they expand on their reply they generally finish it by agreeing it does provide them things that make them happy.  Research seems to be inconclusive when it comes to answering this question about money and happiness.

On the other hand research on the subject of the correlation between money and happiness suggests that perhaps a more valuable question than can money buy happiness, is how can money buy happiness?

It appears that how people spend money has a lot to do with how money buys happiness and one of those ways is for people to spend money on experiences versus spending it on material goods according to some studies.

The authors of the book, Happy Money: The Science of Smarter Spending, claim that people derive happiness from spending money on others instead of on themselves.  They show that this holds true regardless of how money was spent on others.  Whether it was giving money to a charity, spending it on a friend or colleague at work as examples these people derived happiness from giving away their money.

Similarly, spending money with others like family and friends also buys happiness. According to a study out of Harvard, studies make clearer how time is money and spending money on things that buy people time and makes their life easier also brings happiness.

Interestingly enough how often people spend money and how much money is spent brings different amounts of happiness to people.  Spending money in smaller increments but spending it often actually affords more happiness than splurging from time to time on a big-ticket item.

Since it seems to be human nature to want money and happiness it seems that the research will continue to look for more answers on how people can buy happiness.
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Karen helps attorneys; mediators, individuals and couples, navigate through the financial morass of divorce and widowhood. Her expertise lies in understanding the special tax and financial issues that can plague divorce and she helps clients get their financial fair share and equitable settlements. She provides financial analysis, projections and solutions so clients can avoid long-term regret over decisions made early on in divorce and widowhood.  Karen offers a range of financial, investment and insurance services that address clients’ complete financial picture and long-term needs before, during and after marriage.  She is currently writing a book entitled, “To Have and To Hold Onto Your Financial Fair Share: Financial Decision Making When Marriage Ends in Divorce or Death.”