Thought piece Thursday #23 - What is the link between money and happiness?

Today we have a topic mentioned by a loyal reader Tristan over at Dividends Down Under! Check out the value and humour that he brings and he's raised a great question about money & it's link to happiness.

Read to the end to find out a revelation about your Money.

First of all we will not pretend to know what creates happiness in your life. Time have given it a crack at describing the link between money & happiness with interesting results.

What do academics and economists say?

Does anyone care? Possibly not however they really are inconclusive about what having more money and happiness achieves. This is largely due to causation not necessarily equaling causation (ask us to explain that to you if you'd like). What it really highlights is the challenge and difficulty in linking 2 concepts that have a lot of emotion surrounding them. Money & happiness will mean different things to different people. Great you say well what does this mean, should you be chasing more money? Should you change your expectations on what money will do and create for you? The answer is that it depends.

What does it depend on?

  • What do you want to achieve in your life?
  • Why do you want to achieve that?
  • How much is this going to cost you?
  • When do you want to achieve this by?
Create your own dreams & vision then calculate the Money that it will cost you

Create your own dreams & vision then calculate the Money that it will cost you

While this will not guarantee you happiness by getting clear on what money means to you and you alone (your family if you have kids or a partner) you can give yourself the best opportunity to do so.

Is money really a destination?

Let's throw it out there that you may not ever be happy about the level of success or money that you have. What would that feel like for you? There's a few ways you can approach this

  • Be really motivated about how you can keep learning, getting clear on your goals & vision with your money. This could be paying off your house, supporting your parents in retirement (if they need it) or taking an around the world trip
  • Become de-motivated, stop caring and forget about how it is all progressing

In reality most people sit somewhere between the 2 extremes mentioned above.

To sum up then, there is a link between money and happiness, based on the link or emotion that you create towards it.

What are your thoughts on the link between money & happiness?

How long does having more money make you happy for?

Which are areas your struggling with surrounding your money?

Let us know any questions, thoughts or comments you had. Remember to live your MoneyGlee!