Does money make us happy? The debate has raged for as long as I can remember.
Some studies say no altogether.
Other studies put a specific number of when money no longer contributes to happiness. But even those vary greatly: $20,000, $50,000, $75,000.
To add more confusion, you can still find other studies that report there is, in fact, no limit to the amount of happiness money can bring you.
Confusing data to say the least.
Because regardless of which study you choose to believe (or want to believe), one thing is for sure:
Money might not make you happy, but as Zig Ziglar once said, “everybody wants to find out for themselves.”
And that is where the greatest distraction to our well-being lives—not in how much money we have, but in how much we desire it.
Regardless of how much money contributes to happiness (and the jury is apparently still out on that), the one thing we do know is this:
Prioritizing the pursuit of money NEVER contributes to overall happiness and life satisfaction.
In fact, those who prioritize money over the pursuit of more value-based goals end life with less satisfaction and fulfillment.
This ought to be a major personal concern to each of us considering how often we prioritize money over other things—often because we believe it will contribute to our happiness and life satisfaction.
According to one recent study, 79% of Americans believe they will be happier if they had more money.
As a result, as you might imagine, 69% of Americans also say their desire for money influences their daily decisions.
If our starting belief is that more money will increase our happiness, it makes perfect sense we will strategize our days and action on how to acquire more of it.
But in a recent study of 100,000 people published in the Harvard Business Review, Ashley Whillans points out that people who prioritize time over money have a better quality of life.
And this higher quality of life shows up in almost every regard: “more fulfilling social relationships, more satisfying careers, more joy, and higher rates of general satisfaction.”
Of course, there are many in the world who do need more money for legitimate survival. But most likely, if you are being honest, you already make enough to provide for your needs—probably even more than enough.
Certainly 79% of us don’t need more money for survival. We’re prioritizing it because we think it will make us happier.
But when it takes priority over other more life-giving pursuits, not only does it not contribute to our happiness—it distracts us from it.
And this is why the belief that more money will make us happier is so dangerous—it may be the very pursuit keeping us from happiness.
P says
I’m going to go a little off track but not too far, and compare this with my weight loss odyssey. That’s a bit dramatic of a term, but maybe helps get my point across. I was about 6 years into the “baby weight” thing and finally made the move to join a gym (it had a place for the kiddos to hang out in a supervised environment while I was working out plus pools we could use together) and carefully controlled my dietary intake. I wasn’t over the top at all in any of these categories, just trying to manage it after getting to a life point where I could do stuff for my own well being. I shed 20 pounds which was significant for my body size. I got “compliments” frequently but guess how “happy” I felt. Spoiler alert – not much. I was proud of my work, glad to have the time to take the kids swimming, etc, but the weight loss for largely cosmetic reasons? Nah – I did not find much joy in that. My knees probably thank me all these years out for mostly retaining that weight loss, but anyway, it’s not too much of a reach to compare $ earnings to my story. Thanks as always for your blog, all of you great people at Becoming Minimalist.
Sherril says
Say that to the millions who cannot lift themselves out of poverty. Who never have enough money to feed themselves and their families. Never able to enjoy a holiday or buy those little luxuries that bring joy. Say money doesn’t bring happiness to those about to lose their homes when interest rates rise. I disagree with the notion that money doesn’t bring happiness. It really depends on how much money you are talking about.
Bart Moran says
Poverty is awful. Go research life in the USA in 1930. My parents lived it; millennials haven’t a clue.
And rising interest rates only matter to those homeowners with adjustable rates or those who refi into a higher rate. Those choices have conseqences.
Nancy says
Money is a tool that we can use to obtain things in life. A nice car, home, gifts. You can’t feel love for money like you would feel love for a child, friend, spouse or family pet. Money alone does not bring happiness if the rest of your life is empty. It can provide peace of mind, health, etc. It can bring happiness if you give to someone in need..However alone Money cannot give u happiness. A new snazzy car can make u feel excited, but as with most material things the newness wears off and we r looking for that next short shot of dopamine.
joshua becker says
Thanks for the comment Sherril. But I have met many people living in poverty who are happier than those who live in luxury.
Sarah Plain says
They article specifically states that it was talking about people that had adequate income to live on.
Kathleen says
More money will not make you happy, just gives you more options.
joshua becker says
Options. Both good and bad.
Adrian says
I’m British, but I can say this applies to me as well as most of us in the U.K. My personal experience of becoming a bit more financially affluent in the last 12 months has brought different stresses . I’m no happier than I was before then .
June says
We lived paycheck to paycheck for the first several years of our marriage. The past few years, I built a business from home (we have 5 kids and homeschool) so we could have two incomes instead of one. More money allowed us to pay off our debt, have an emergency fund and finally start saving aggressively for retirement. It’s allowed us to invest in our children’s various interests and education. I have a lot more peace now, knowing that if something in the house breaks or a car repair is needed, we have the money to fix it. We can finally afford an extremely basic yearly family vacation, which we couldn’t for years. I no longer agonize over basic day to day spending like I once did, feeling intensely torn and guilty about whether or not I could get a few extra things at the store or the occasional coffee out.
Am I always happier? No. But I do have far more day to day peace. So perhaps many people associate peace with happiness, which could be why some take issue with the post, as I might have at one time.
Thanks for sharing your thoughts here!
nicoleandmaggie says
According to the income percentile in the US, the individual 80th percentile is $92K/year. Given that 75K number was years ago and there’s been inflation since then, I don’t think 80% of people are wrong. More money will make them happier.
You cannot understand how important it is to have a cushion/safety net unless you’ve never had one. Having more money means more savings and peace of mind in case of an emergency.
Barb says
So VERY true!
Joseph TAMMARO says
Maslow hierarchy of needs plays a part in accessing one’s money needs
That coupled with one’s age, and a desire for health over monetary things is how I think we proceed through life
Suzanne G. Hlotke says
I think Mr. Becker made it abundantly clear that he wasn’t talking about people who need more money to survive. I am currently reading the autobiography of Andrew Carnegie. He could have worked until his death to make more money, but instead he walked away from his business and spent his next years finding ways to distribute his wealth to make others’ lives better.
Aimee says
Just wanted to tell you how much I appreciate your article. I have found the more money I make, my expenses increase. Our economy is so much different than precovid; everything is do high-it completely overtook any raises I have gotten. Celebrating a raise isn’t even a thing now, although I am grateful for “more money” I really just break even. I try very hard to live below my means. Working on decluttering my possessions. You are an inspiration, I have been following you for years. You are a light worker Joshua.
Sibylle says
I‘ve been reading your blog for many years, but I have to say that I seem to notice a change of tone.
Of course, it‘s very difficult to keep the content new and exciting – you can only say so much about ‚have less stuff‘ and ‚people over things‘.
But like with the post some time ago where you advertised working 40-50 hours a week (where you mentioned the difference between ‚job‘ and ‚work‘), I feel this one is taking a very upper middle class view.
According to statista.com, in 2020 16.1% of U.S. children lived in poverty as defined by the UNESCO, 19.5% of the Black and almost a quarter of the Native population.
All combined, about 12% of the population are in poverty (by definition „families of four making less than 26,500 U.S. dollars a year“ or singles less than 12,500).
So, if you are a family of four making 27,000$ a year, you are out of this definition and – I bet you – you will still be struggling to make ends meet, no matter how few ends you have.
I think it‘s dangerous to tell people that turning away themselves from capitalist wants is the only way to go – a big part of the problem is a capitalist system that sets severe boundaries on people‘s possibilities.
I can understand if you don‘t want to go into the hot topics of politics here, and surely a huge number of your readers (like myself) is middle/upper middle class, but I just wanted to show the other side.
joshua becker says
Thanks for the comment Sibylle. I think you proving my point. 12% of the population is living in poverty. But 80% of the population thinks more money will make them happy. As I mention in the article, “Of course, there are many in the world who do need more money for legitimate survival.” But that number is nowhere near the 80% who think more money is their key to happiness. Hope that helps and thanks for the comment.
Judy says
Money doesn’t buy happiness. I’m sure most people have known wealthy individuals that are miserable. It doesn’t bring back a loved one who has passed—- it doesn’t cure an incurable disease—- and it doesn’t bring peace and happiness to an ungrateful, condescending heart.
Sibylle says
Thanks for replying, Joshua!
I‘m sorry, I don‘t get the same conclusion from that study you linked.
Out of 400 adult U.S. citizens, 201 said that they think they‘d „more likely to be happier“ if they had more money, and 110 more said they‘d be „somewhat likely to be happier“ – and that‘s your own study; the question was not „do you feel more money is the key to your happiness?“
It would be quite interesting to ask people „in your opinion, is your key to happiness money/health/job/friends and family?“ I‘d be surprised to get 80% going for money – it‘s a different question altogether.
But I do get your point.