We’ve all heard the saying ‘money can’t buy you happiness’, but how true is it today? Well, not at all, according to a recent survey of 2000 Brits, commissioned by Wealthify that found a close relationship between money and happiness.
The survey, via OnePoll.com, offers clear insights into the importance of finances on our well-being. The study found that ‘rich’ people (those with a disposable income of at least £1,251) rate their happiness at 8 out of 10, compared to only 6 out of 10 for those with only around £100 per month to spend on themselves. The majority (78%) of participants agreed they’d be happier if they had more money, with £508 extra per month being the magic figure required to achieve a state of contentment. If they had more money, people listed holidays abroad, treating themselves and loved ones, buying new gadgets, and decorating their homes as top priorities, while paying off debts and saving for the future featured less prominently
The euphoria linked to these purchases sadly doesn’t last forever, it seems. Most people confess that their glee vanishes after a few days, or months for the luckiest ones, once the dopamine – the hormone which makes people feel joyful – stop exercising its magical power, leaving people with a feeling of emptiness that can only be filled with more spending. Yet, spending itself can also be the source of unhappiness, as 68% of those taking part in the survey admitted that worrying about finances, over anything else, is what prevents them from being happy, and just 30% of people felt confident that they would one day reach a point where they had enough money.
But don’t panic, it’s possible for everyone to achieve long-term financial happiness, as long as they manage their money wisely. Big life events, such as getting married, preparing your children’s future, or paying off your credit card debt, are good ways to set a goal and focus your saving efforts. With 58% of people admitting they could be better with their finances, it seems that most of us would benefit from a helping hand when it comes to our money.
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The comments and opinions expressed in this article are the author's own and should not be taken as financial advice from Wealthify.