Money can buy Happiness

In a recent group chat with a few ex students, the topic of money came up again.  The question was, Does Money give us happiness?  The obvious answer is yes, but we went on to discuss deeper.

Why does money give us happiness?

1.  Spending money can boost our mood.  Researches have shown that buying experiences and gadgets increases the dopamine level and hence gives us happiness.  However, this dopamine level increases only when we are buying it, but quickly lowers after the purchase. So the happiness from the purchase may not last long, especially if we regret the purchase.

2.  At one National Day Rally, either Mr Goh Chok Tong or Mr Lee Hsien Loong (can't remember which PM as it was quite some time back) said something like this:  "... we work hard, so that we can have more options in life." When we have more money, we can choose between hawker centre, expensive restaurants, or home delivery for our meals.  This gives us the satisfaction and hence happiness.  But when we are short of money, our options are limited. 

3.  Financial security.  When we have more money, we stress over less things in life, theoretically.  The various bills are automatically deducted from our bank accounts, and we need not worry.  But for those who are living hand to mouth, they worry constantly about not being able to pay the bills for the month, electricity and water being cut off, no food on the table etc.  Hence having financial security gives us a sense of happiness.

4.  Having money gives us confidence. With confidence, we feel safer and happier.  Having money makes us proud too.  This pride is also a source of happiness.

5.  Having money also allows us to contribute/donate to the needy (although not everyone does so).  Those who help will feel a sense of satisfaction and hence happiness. 

However, with the need to have more money, other factors may come into play.  These may in fact, lower the effect of happiness gained from having more money.  It could be due to having more money itself, or from the process of gaining more money.

When our salary increases, it means our level of responsibility at work increases.  This brings stress.

When we have other sources of income besides our job, it means we need to spend more time on those things.  There will be opportunity cost involved, family time, for example, and this can lead to quarrels.

When we have money, we need to ensure that we do not spoil our children. The need to ensure that they grow up with the right values, will need our time (Although, some people may feel that since they have money, it is rightful for their children to be spoilt).  And if the children grow up to be irresponsible persons, these will give headaches too.

When we have money, more people will come to us, to borrow.  When we say no, it can be a cause for stress.  We may also notice that more people are friendly with us.  If we understand their true intention, this could be another cause for stress.

When we have lots of money and investment, we need to manage wealth, prepare our will etc.  When we lose money from investment, or when market fluctuates, there will be stress too.

Life is not one straight line.. It's not so simple as having money means having happiness.  Awareness is key, and Balance is crucial.

There are other things that can make us happy too, like the care given by others, or having some one to love. 

Thanks, Elton, for the home-made Madeleines.