Can Money Buy Happiness?

It’s an age-old question in a world where we seem to be constantly striving for wealth and its associated status. Can money buy happiness? 

I should start this post by saying that a severe lack of cash leading to debt, homelessness and poverty is unlikely to make anyone happy. However, once you have enough to make your rent or mortgage, pay your bills, have enough to eat and maybe some left over for the odd treat, does having more and more money lead to greater joy and contentment?

The urge to grow rich

Judging by the popularity of lotteries and gambling sites, plus the many self-help books promising a path to wealth, many of us have a strong urge to grow rich.

However, there are many examples of people who get wealthy very suddenly who then struggle to stay that way. It’s not uncommon to see young footballers, pop stars and celebrities who spend uncontrollably after being catapulted to the big-time. They may have the money, but they don’t have the maturity and knowledge to take care of their finances. Some end up fighting addictions, broke or both.

A cautionary tale

Some of you will be familiar with the story of Viv and Keith Nicholson, who won £150,000 in the 1960s on the football pools. This was a huge amount of money at the time (worth around £3 million today). Elated, Viv Nicholson promised to ‘Spend, spend, spend!’ 

She and husband Keith did exactly that, ploughing through the cash until it had all gone. Keith bought several luxury cars and sadly died at the wheel of one of them at the age of just 28. Viv had two more marriages, became an alcoholic, attempted suicide and was constantly hounded by the tabloids. A cautionary tale.

You probably know people in your own life who are well-off but unhappy. So, can money buy happiness? It’s clear that money alone is not the answer.

Poor little rich kids

I feel there is a difference between people who have planned and saved, invested and grown their money over time and those who have simply come upon great wealth. If you earn well doing something you enjoy yet retain control of your money, you have the best of all worlds. 

Think of all those poor little rich kids you hear about, the children of the mega rich. Some of them get into trouble with too much money and too many temptations. Vast wealth at a young age can be incredibly isolating. How can you tell who your real friends are amongst the many hangers on? What is your motivation day-to-day? The Guardian published this interesting article about children who inherit vast wealth and the effect it has on them.

Avoiding the pitfalls

There is nothing inherently wrong with wanting to do well and become wealthy. But maybe the way to stay wealthy, happy and in control of your money is to learn about finance and how to deal with it, and to be mindful about how you spend your wealth whilst appreciating its benefits and being cautious about the potential pitfalls?

I believe that once you have all bases covered financially, it is wise to take time to appreciate the things that really matter. To nurture your relationships with family and friends, and to take pleasure in things that don’t cost much. To realise that, even if money is unlimited, time isn’t. We need to make the best of the time we are given.

I also wonder if the way you spend money makes a difference to your relationship with it and your overall contentment. If you give money to somebody in need or to a charity, how does that make you feel? Do you get more satisfaction spending your money on experiences and memories instead of stuff? What if you successfully save for something you really want rather than having it given to you? I suspect that it’s not just having money that makes you happy, but what you do with it once you’ve got it.

What do you think? Can money buy happiness, or are we likely to make ourselves miserable in its pursuit?