How much money do you need to be happy?.
We've all heard the adage "Money can't buy happiness," but it often sounds more like an idealistic life lesson than helpful advice; words you should live by, but not words you always really believe. But is that a symptom of a materialistic society?
A new survey revealed the amount of money people think they need to be happy. Not surprisingly, the amount varied considerably by country (and by association, society).
When asked how much money they would need to “make them feel really happy,” a recent Wealth Sentiment Survey commissioned by Skandia International found that the average price of happiness is an annual income of US$161,810. This amount, as it turns out, is 15 times the global income average. Perhaps most interesting, though, is how the answers differed around the world.
In Dubai, for instance, those surveyed felt that in order to be truly happy, they’d need to make US$276,150. Dubai’s respondents gave a number that was considerably higher than some, but was followed closely by respondents in Singapore (US$227,563) and Hong Kong (US$197,702).
Things looked a little different in Europe, though, where Italian respondents felt they’d need an annual income of US$175,825 in order to "be happy." That was considerably higher than respondents from the UK, who gave US$133,010 as their perfect income, and even higher than the Germans, who felt that US$85,781 was more than enough to lead a happy life.
“There are many more things in life that can make people happy, but there is no doubt that money can help,” says Phil Oxenham, marketing manager at Skandia International. “It is fascinating to see the regional differences in levels of income and capital that people think they need to feel happy and wealthy.”
Money can be a source of happiness, agreed a team of North American researchers that published a recent paper in the Journal of Consumer Psychology. Entitled If money doesn’t make you happy, then you probably aren’t spending it right, the paper summarizes decades of research on the subject:
“Money allows people to do what they please, to live longer and healthier lives, to buffer themselves against worry ad harm, to have leisure time to spend with friends and family, and to control the nature of their daily activities – all of which are sources of happiness.”
Eight ways that money can buy happiness
While money can bring happiness, the researchers are clear to point out that it only works if consumers are spending it on the right things. Are you spending yours right? Here are eight ways that money can buy happiness:
1. Buy experiences instead of things. Experiences are proven to make people happier than material possessions in the long term. Spend your money on experiences; rather than items that will ‘lose their charm’ not long after they’re purchased.
2. Help others instead of yourself. Pro-social spending, says the report, tends to have a “surprisingly powerful impact on social relationships.”
3. Buy many small pleasures instead of a few big ones. It is said that indulging in frequent, small treats, like manicures or lattes, produce more happiness than large purchases like sports cars, dream vacations and front-row concert tickets.
4. Buy less insurance. This doesn’t include all insurance (car, home and life insurance are still necessary), but refers to extended warranties and insurance for cheaper, material possessions.
5. Pay now and consume later. Think of this as ‘delayed gratification’ or long-term gratification, as “anticipation is a source of ‘free’ happiness.” Delayed consumption doesn’t just produce long-term happiness, but also forces consumers to really think about what they’re buying, thereby eliminating impulse buying.
6. Think about what you’re not thinking about. The study uses the example of a cottage, which would likely bring happiness in its self. But along with that happiness comes the unhappiness of maintenance costs, long commutes, plus the stress of added bills. Yes, the cottage might bring happiness itself, but does it outweigh the ‘other stuff’ it brings?
7. Beware of comparison-shopping. Comparison-shopping shifts consumers’ focus from the item in question’s attributes to the overall cost of the item. “By altering the psychological context in which decisions are made,” says the report, “comparison shopping may distract consumers from attributes of a product that will be important for their happiness, focusing their attention instead on attributes that distinguish the available options.”
8. Follow the herd instead of your head. Believe it or not, sometimes the herd is right. As the study points out, “the best way to predict how much we will enjoy an experience is to see how much someone else enjoyed it.”
What do you think? Can money buy happiness?
We've all heard the adage "Money can't buy happiness," but it often sounds more like an idealistic life lesson than helpful advice; words you should live by, but not words you always really believe. But is that a symptom of a materialistic society?
A new survey revealed the amount of money people think they need to be happy. Not surprisingly, the amount varied considerably by country (and by association, society).
When asked how much money they would need to “make them feel really happy,” a recent Wealth Sentiment Survey commissioned by Skandia International found that the average price of happiness is an annual income of US$161,810. This amount, as it turns out, is 15 times the global income average. Perhaps most interesting, though, is how the answers differed around the world.
In Dubai, for instance, those surveyed felt that in order to be truly happy, they’d need to make US$276,150. Dubai’s respondents gave a number that was considerably higher than some, but was followed closely by respondents in Singapore (US$227,563) and Hong Kong (US$197,702).
Things looked a little different in Europe, though, where Italian respondents felt they’d need an annual income of US$175,825 in order to "be happy." That was considerably higher than respondents from the UK, who gave US$133,010 as their perfect income, and even higher than the Germans, who felt that US$85,781 was more than enough to lead a happy life.
“There are many more things in life that can make people happy, but there is no doubt that money can help,” says Phil Oxenham, marketing manager at Skandia International. “It is fascinating to see the regional differences in levels of income and capital that people think they need to feel happy and wealthy.”
Money can be a source of happiness, agreed a team of North American researchers that published a recent paper in the Journal of Consumer Psychology. Entitled If money doesn’t make you happy, then you probably aren’t spending it right, the paper summarizes decades of research on the subject:
“Money allows people to do what they please, to live longer and healthier lives, to buffer themselves against worry ad harm, to have leisure time to spend with friends and family, and to control the nature of their daily activities – all of which are sources of happiness.”
Eight ways that money can buy happiness
While money can bring happiness, the researchers are clear to point out that it only works if consumers are spending it on the right things. Are you spending yours right? Here are eight ways that money can buy happiness:
1. Buy experiences instead of things. Experiences are proven to make people happier than material possessions in the long term. Spend your money on experiences; rather than items that will ‘lose their charm’ not long after they’re purchased.
2. Help others instead of yourself. Pro-social spending, says the report, tends to have a “surprisingly powerful impact on social relationships.”
3. Buy many small pleasures instead of a few big ones. It is said that indulging in frequent, small treats, like manicures or lattes, produce more happiness than large purchases like sports cars, dream vacations and front-row concert tickets.
4. Buy less insurance. This doesn’t include all insurance (car, home and life insurance are still necessary), but refers to extended warranties and insurance for cheaper, material possessions.
5. Pay now and consume later. Think of this as ‘delayed gratification’ or long-term gratification, as “anticipation is a source of ‘free’ happiness.” Delayed consumption doesn’t just produce long-term happiness, but also forces consumers to really think about what they’re buying, thereby eliminating impulse buying.
6. Think about what you’re not thinking about. The study uses the example of a cottage, which would likely bring happiness in its self. But along with that happiness comes the unhappiness of maintenance costs, long commutes, plus the stress of added bills. Yes, the cottage might bring happiness itself, but does it outweigh the ‘other stuff’ it brings?
7. Beware of comparison-shopping. Comparison-shopping shifts consumers’ focus from the item in question’s attributes to the overall cost of the item. “By altering the psychological context in which decisions are made,” says the report, “comparison shopping may distract consumers from attributes of a product that will be important for their happiness, focusing their attention instead on attributes that distinguish the available options.”
8. Follow the herd instead of your head. Believe it or not, sometimes the herd is right. As the study points out, “the best way to predict how much we will enjoy an experience is to see how much someone else enjoyed it.”
What do you think? Can money buy happiness?
