The answer to the age-old question is in: money can buy you happiness. But not so fast, because it’s not that simple or straightforward. For people living on the a fixed income, more money would offer relief and access to things most of us take for granted. For others, it means greater purchasing power and the ability to afford things we want. But at every income level there are ways to reach satisfaction.
Researchers believe that there is a satiation point of happiness based on household income at $75,000 U.S. What this means is our level of happiness peaks when our income or household income reaches $75,000 U.S. If you make twice this amount of money, you may be able to buy a more luxurious house in a coveted neighborhood, but you are no happier then someone making $75,000. At first glance, this may seem a bit unbelievable.
Yet, other researchers now believe that income and happiness are directly related. In other words, the more money we make or have, the happier we are. Who to believe? Perhaps there is a different way of evaluating our happiness.
Life satisfaction is another way to evaluate our lives. The Gallup-Healthways Well-Being Index® collected feedback from over 450,000 people around the world regarding their perceptions of money and happiness. Two ways to look at money and happiness were reviewed: 1- whether more money increases people’s emotional well-being or 2- whether more money increases people’s evaluation of their life. Money has the power to give us more choices and personal freedom. If you view your money as a tool, resource or gift you know its value and what it can do for you. If you struggle with finding some meaning behind your money, you may want to redefine it or put your money into the bigger picture. Think about embracing these 3 strategies around money and happiness:
1. Live your best life today. Take good care of yourself. Spend your money on life experiences that will enrich your life.
2. Look for satisfaction in your life. Look at your life in the bigger picture. You will honestly get less hung up with how much money you have or make but rather on daily living.
3. Set goals. Most people who live by goals feel more in control and happier in their lives. They have a clear vision of where they are going.
Money has the power to make us happy but only to a certain point. But what matters more is living our best life today. Of course, we must aspire for more, but perhaps what more is may not necessarily be ‘more money’ it may be about spending our money in a way that derives greater satisfaction. And, when we live by a set of values and make informed and conscious choice, we have the power to increase our life satisfaction and ultimately our happiness.
Originally appeared in The Huffington Post