Does Money Really Make You Happy?May 10, 2021
Does money really make you happy?
Money is one of the most divisive topics there are. And one on which everyone will have an opinion. When you start your property journey, money mindset will be a massive thing for you and also one of the most significant issues for those around you who won't understand your goals.
Non-property investors tend to feel that landlords are money-grabbing and out to rip people off. They are not seen in a positive light, and most of that seems to revolve around money and their views of it.
So, ignoring all that for now, let's take a more in-depth look at money as we ask the age-old question …
Do you need money to be happy?
Research has shown that there is a positive correlation between income and happiness within a given country. It also says people living in more affluent countries are no happier than people living in poorer countries.
The findings concluded that higher absolute income led to higher happiness. But there comes the point where an increase in income slows down happiness too.
This reflects the Keeping up with the Joneses ethos and suggests that happiness depends on your income level and how it compares to those around you.
In an article in Entrepreneur Magazine, John Rampton discusses how much money is required to make someone truly happy. There are a considerable number of studies, with a huge amount of different outcomes. For some people, $30,000 (around £23,000) a year is a magic number. For other people that number runs into the hundreds of thousands.
One of the reasons for this, he argues, is that there needs to be a number which gives people financial stability or security. That’s what makes them happy - the feeling of security, not the money itself.
So, everyone has a different number. Interestingly he also said, the more money he had, the more stress his life had too - suggesting that merely having more money will not always make you happier.
One way to look at this is that a certain amount of money can make life easier – giving you financial freedom and allowing you to experience more. But it can also help others too – this could be supporting friends or family or donating to charity.
Experiences over stuff
For a growing number of people, money is not the accumulation of stuff. Bigger houses, bigger cars, and expensive watches are all nice and can be a great motivator for people. But, for others, they would rather travel and invest in experiences and learning. Having more stuff is a headache and can lead to higher stress, more significant outgoings and then more worry.
Rampton again writing in Entrepreneur magazine suggests that the thrill of having possessions wears off and doesn’t add value to social relationships. He suggests that people bond over experiences rather than things. He also suggests that experiences such as travel, tend to broaden the mind and help people experience gratitude on multiple levels.
Money can buy you time
One thing suggested is buying things that save you time - as time is the one thing that can’t get back. So, investing in a cleaner, a cook, or even a driver, can free up more of your time. Maybe even a personal assistant to take care of the finer details of life for you. You will also be surprised the cost of these services could be lower than you think. Don’t rule it out.
Having money makes life easier to decide what you want to do. It can help pay for travel, experiences, charitable donations, and much more. It is the actual output of the money that can make you happier, not the money itself.
We suggest that you create a plan for the things you want and truly consider what money will help you do. Simply having more money will make you happier to a point, but after that, research is telling us there is a point of diminishing returns.
Having money means different things to different people. Investing in property can give you the financial freedom to actually live your life – whether that is by giving you financial security or freeing up your time.
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