It’s an age-old question: Can money buy happiness?
Over the past few years, new research has given us a much deeper understanding of the relationship between what we earn and how we feel. Economists have been scrutinizing the links between income and happiness across nations, and psychologists have probed individuals to find out what really makes us tick when it comes to cash.
The results, at first glance, may seem a bit obvious: Yes, people with higher incomes are, broadly speaking, happier than those who struggle to get by.
But dig a little deeper into the findings, and they get a lot more surprising—and a lot more useful.
In short, this latest research suggests, wealth alone doesn’t provide any guarantee of a good life. What matters a lot more than a big income is how people spend it. For instance, giving money away makes people a lot happier than lavishing it on themselves. And when they do spend money on themselves, people are a lot happier when they use it for experiences like travel than for material goods.
With that in mind, here’s what the latest research says about how people can make smarter use of their dollars and maximize their happiness.
Source: The Wall Street Journal | Andrew Blackman